"Billions served." indeed. McDonald's is the world's #1 fast-food company by sales, with more than 30,000 of its flagship restaurants serving burgers and fries in more than 100 countries” . Today, “McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people.” In terms of countries, it operates in more than 119 countries on six continents. 70% of the locations are run by franchises while the corporation owns the other 30%. On a day to day basis, more than 47 million customers worldwide are served by McDonalds. Over the years, McDonald has brought different promotions into the market to make the consumer purchase a fun experience. The most recent being its Home Delivery which was started within 2km range.
PORTER’S FIVE FORCES MODEL
With fast food restaurants showing up, what seems like on every corner, it’s interesting to analyze the competitive strategies companies in this industry use in order to survive. A good way to analyze the strategies is by using the Porter five forces competitive model. The Porter model looks at what strategies a company uses to “effectively counter 1) the rivalry of companies in the industry, 2) the threat of new entrants, 3) the threat substitutes, 4) the bargaining power of customers, and 4) the bargaining power of suppliers.
1. Rivalry of the companies in the Industry-
McDonald’s is in the fast-food business, and nowadays, there is huge competition for that. A competitor for McDonald’s can be anywhere from an upscale restaurant to a vada pao stand at an IPL Game. Its major competitors in are-
* Local Burger Shops
* Pizza Hut
Yum! (KFC, Pizza Hut and Taco Bell)
jack in the Box
Unline McDonalds, KFC has not been able to establish itself and shun its image of being a beef burger shop. McDonalds is clearly poised well in...
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