Porters 5 force on Mcdonald's Company.

1. Porters 5 Force

2. Competition in the industry (HIGH)
• Very competitive Fast Food industry
• Competitors Advertising Capabilities Location of
outlets
• Major competitors- Burger King and YumBrand INC.

3. Potential of new entrants into the industry (HIGH)
•Regulation of Limit
•Easy Access Market and Low start up cost
•Example of SubWay's market penetration

4. Power of suppliers (Low)
• Worlds largest restaurant chain in sales
• High bargaining power over its suppliers
• Most of them own MCD for their own existence
• Low the power of suppliers – Lower the cost of raw
material and HIGH competitive price.

5. Power of customers (Low)
•Industry limitations
•Low quantity purchases
• Less chances of switching, high brand image through
differentiation and uniqueness
•Buyers don't have bargaining power

6. Threat of substitute products. (Low-Moderate)
•Availability of the MCD products
•Choose MCD for Easting and Entertainment
• Narrows Threat of Substitutes due to introduction of
local taste products.