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Porter's 5 forces on Mac D

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McDonald's is the world's #1 fast-food company by sales
Serving burgers and fries, it operates more than 34,000 flagship restaurants http://www.unitedworld.edu.in/

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Porter's 5 forces on Mac D

  1. 1. A PRESENTATION ON MCDONALD’S GROUP MEMBERS  ATRI ROY  NEHA SINGH  ABHIJIT ROY  NILESH SAHA  TAPASI SARKAR
  2. 2. COMPANY BACKGROUND  The First McDonald’s was built in 1940.  Ray Kroc was the First Franchisee appointed by the original McDonald brothers, Dick and Mac.  He opened his first restaurant in Des Plaines, Illinois.  The company motto became “Quality, Service, Cleanliness and Value” (QSCV)
  3. 3. CURRENT STATUS OF COMPANY  McDonald's is the world's #1 fast-food company by sales  Serving burgers and fries, it operates more than 34,000 flagship restaurants  It serves in more than 119 countries on six continents.  On a day-to-day basis, more than 47 million customers world-wide are served  Employs more than 1.5 million people.  More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women.
  4. 4. PORTER’s FIVE FORCES ANALYSIS  Formed by Michael E. Porter of Harvard Business School in 1979.  Helps in analyzing the Industry and the Business Strategies being taken by the Company.
  5. 5. PORTER’s FIVE COMPETITIVE FORCES Competition Within Industry:  KFC, Pizza Hut, Dominoes, Subway  Sandwiches Prepared Meals.  Fast Food Centers.  Online presence – Company Info, Home Delivery, Better Combo Deals. New Entrants:  McDonald’s has market dominance (over 30,000 restaurants world-wide)  Economies of scale force new entrants to enter at a cost disadvantage.  High Competition  Easy To Entry For New Comers.
  6. 6. PORTER’s FIVE COMPETITIVE FORCES Threat Of Substitutes:  Fast Food Centers.  Healthier Alternatives.  Unique Products  Substitute for Coffee, Cold Drinks available at Cheaper Rates. Bargaining Power Of Customers:  Pay Attention to Customer Demands and Trends.  Offer Specialty Products for Certain Segments.  McDonalds Focus on Special Tastes and Preferences on Customer Choice.  Customer May Shift From Mc Donald’s To Another Brand as They Have High Bargaining Power.
  7. 7. PORTER’s FIVE COMPETITIVE FORCES Bargaining Power of Suppliers:  McDonald’s relies on strong Supplier and Distributor relationships.  Help Suppliers lower costs.  Develop New Supplier Base to reflect Customer Diversity.  Suppliers include: Coca-Cola, Heinz.
  8. 8. CONCLUSION  The goal is to become customers favourite way and place to eat and drink by serving the best.  Due of its financial power McDonalds could move into to other industries/products at any time.  Due to its high demand, company can introduce new products or items i.e. Product Development.
  9. 9. THANK YOU
  10. 10. http://www.unitedworld.edu.in/ Campus Ahmedabad Campus: Karnavati Knowledge Village, A/907,Uvarsad, S.G.Highway, Gandhinagar Kolkata Campus: Infinity Benchmark Tower 10th Floor, Plot - G1, Block - EP& GP, Sec -V, Salt Lake, Kolkata. Reg. Office: 407, Zodiac Square, 4th Floor Opp. Gurudwara, S.G. Road, Bodakdev, Ahmedabad.
  • SaraAntony1

    Mar. 17, 2019
  • Merveilleux2015

    Jan. 17, 2016
  • LittlePunchZ

    Apr. 6, 2015
  • kwangnoinoi

    Jan. 22, 2015

McDonald's is the world's #1 fast-food company by sales Serving burgers and fries, it operates more than 34,000 flagship restaurants http://www.unitedworld.edu.in/

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