Porters' five forces of fast food industry

Page 1 of 6

Porters' five forces of fast food industry

By | August 2010
Page 1 of 6
University of San Carlos
College of Commerce
P. del Rosario St., Cebu City

-------------------------------------------------------------------------------

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

-------------------------------------------------------------------------------

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.

-------------------------------------------------------------------------------

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...