Mcd Porter 5 Force Case Study
The threat of entry of new competitor
McDonalds, has make an entry barriers that others competitor cannot enter the fast food industry easily because, McDonalds have good product and service that customer has learned to expect from fast food industry.
As we can see, people more choose McDonalds compare to others fast food like KFC, Burger King or A&W because McDonald's has cheaper price, a lots of menu that suitable with Malaysian taste and good service like MC Delivery compare to others fast food restaurant.
The greatest strength was creating an image in the minds of the people and introducing them to the fast food culture. Delivery speed, customer care and cleanliness are the core strengths on which these stores expanded. They created a corporate symbol and their advertisement campaigns were highly successful in establishing the brand image and logo in the minds of the millions. Two main competitors generally identified with McDonald are the Burger King and the KFC. McDonald marketing strategy is concerned with the internal resources.
A large amount of product differentiation exists in the industry. The McDonald brand ranks as 8th in Business Weeks Scoreboard over global brands. Furthermore the brands KFC and Pizza Hut are also represented (with place nr. 61 and 63 on the scoreboard). This signifies a large consumer preference to the global brands, and would create somewhat of a barrier for new entrants.
2. The bargaining power of supplier
Different suppliers have different bargain powers in the fast food industry. There is the soft drink industry where mayor supplier brand names supplies products and brand value to the fast food industry. Then there is the large amount of smaller suppliers that delivers other products to the fast food industry. For example, Coca Cola and Pepsi.
The market for soft drinks is dominated by a few companies. Mainly Coca Cola and Pepsi. These soft drinks suppliers are the only ones who have...
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