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... [continues]

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