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Porters' Five Forces of Fast Food Industry

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Porters' Five Forces of Fast Food Industry
University of San Carlos College of Commerce P. del Rosario St., Cebu City

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An Analysis of the Philippine Fast Food Industry using Michael Porter’s Five Forces

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Submitted to: Ms. Joyce Yang

Submitted by; Group 9 Awe, Niña Faith M. Cabasag, Rechel C. Chua, Hegiño Jr. J. Lequin, Viktor Xenon O. Mahusay, Christian T.

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July 13, 2010

MACROENVIRONMENT

Demographic * Increasing women workforce2 * Nonunionized employees * Young affluent population1 * Rising disposable income1 * Rising consumer awareness on health and safety concerns3,4

Socio-Cultural * Filipino’s love for food * Fast paced life2

Political/Legal * Present but not very significant government regulation

Technological * Technological Advancement (e.g. creations of assembly lines, touch screen monitors, etc.)

Global * Western influence in the global fast food scene

Bargaining Power of Suppliers

Weakening

* Easy for the industry player to go to suppliers’ business * Highly competitive supplier industry * Greater share of customer base by the fast food industry for the suppliers * Low suppliers’ switching costs * Difficulty of supplier industry to circumvent fast food industry * Cheap and nonunionized labor supply * Present but
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