porter’s five forces-mcdonalds
TRANSCRIPT
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PORTER’S FIVE FORCES
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ABOUT COMPANY •Mc Donald's is the global fast food chain
•Entered India in Oct. 1996.
•They are the world’s largest food service chain
•Very diversified range of products
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INDUSTRY COMPETITORS
IN INDIA
POWER OF BUYERS STRONG
POWER OF SUPPLIERS WEAK
THREAT OF SUBSTITUTESTRONG
THREAT OF NEW ENTRANTS WEAK
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WHO ALL SELL BURGERS IN INDIA ???
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COMPETITIVE RIVALRY WHY STRONG ?
• High number of firms • High aggressiveness of firms• Low switching costs• Opponents advertising
capabilities
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BARGAINING POWER OF BUYERS
WHY STRONG ?
• Choices allow customers to seek out competitors • Low switching cost • Large no of providers • Substitutes
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THREAT OF SUBSTITUTE
WHY STRONG ?
• HIGH SUBSTITUTE AVAILABILITY • HIGH PERFORMANCE UPON COST• LOW SWITCHING COST
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BARGAINING POWER OF SUPPLIERS
WHY WEAK ?• Large no of suppliers • High overall supply
MAJOR SUPPLIERS
• Raw materials • Builders • Restaurant designers • Beverages(coke products)
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WEAK -WHY?
• MODERATE CAPITAL COST • BRAND LOYALTY • NO DESI FEELING
THREAT OF NEW ENTRANTS
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WHAT TO DO ?• Creating greater value through innovation & cultural
consideration • Enhancing the overall in house experience.• Customized burgers option in outlet• Competing with opponents like Starbucks ,KFC,DOMINOS
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INNOVATIONS & REGIONAL PREFERENCES
LOCAL TASTE ATTRACTING KIDS
PRICING AS PER MARKET
CELEBRITY ENDORSEMENTS
INHOUSE EXPERIENCE
CUSTOMIZATION
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COMPETING WITH OPPONENTS
STARBUCKS DOMINOS/PIZZA HUT
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