Industry Report of Fast Food Industry

Topics: Fast food, Fast food restaurant, Porter five forces analysis Pages: 13 (4415 words) Published: October 6, 2008
Table of Contents

1.Executive Summary
3.Industrial Analyis
Internal rivalry
Substitutes and compliments
Supplier power
Buyer power
4.Limitations and extensions of porters five forces
5.value net

Executive Summary

Industry analysis is guide to know the profitability of the fast food industry by as assists us in 1.Understanding the competitive forces in the industry.
2. Assessing the attractiveness of, and growth opportunities within, a new industry 3.Developing effective strategies to raise your profitability, power, and competitive position in an industry. Industries are different from each other and to understand the working of industry it is necessary to first solve the complex economic issues. Industry analysis not only helps to assess a particular industry and its performance but also provides with important information about few industry’s aspect. Moreover, the industrial analysis assists in identifying the core factors affecting performances in vertical trading relationships and horizontal competitive relationships. Here the horizontal competitive relationship refers to the set of distinct businesses the firms compete in. Industrial analysis facilitates the determination of how changes in the business environment affect the industry’s performance. In addition to this, it identifies opportunities and threats in the business landscape. The investigation exhibits information on several spheres of GLOBAL FAST FOOD INDUSTRIES and has used the industrial analysis in order to have in depth knowledge of the industry. This report also contains porter’s economic factors that affect the profits of an industry. These factors which are classified in 5 major forces namely INTERNAL RIVALRY, ENTRY, SUBSTITUTE AND COMPLIMETARY PRODUCTS, BUYER POWER AND SUPPLIER POWER are also included in the report which encompass the vertical chain and market competition. Furthermore, it also contains Adam Brandenberger and Barry Nalebuff’s Value Net which assess the opportunities available with the industry to progress. The fact can easily be inferred from the report that the fast food industry is flourishing at a rapid pace. The demand for fast food and its popularity have gained a prominent place in today’s global market. The leading companies of the fast food industry such as McDonalds, KFC, yum! Brands to name a few have paved their way into the global fast food chain industry and created a niche for themselves. The report has all the data necessary to show its growth in recent years. Though a major part of the fast-food industry is dominated by the American companies several other companies from other parts of the world have not been lagging behind. With the help of Porter’s five forces framework the report try and analyse how the fast food industries deal with the economic issues and emerge out of it as winners by earning more profits. In this industry all the five forces have a crucial role to play as they all influence each other, In other words they are interring - connected. This industry analysis report Intend to show how the global fast food industry has been influenced by porter’s five forces and how do they work in this industry. Apart from this, report also describes about some limitation of porter’s five forces and explains about the extensions of the five forces model. Moreover, the report recommended some suggestions to the five forces model which might be profitable for the Global fast food industry.


The term Fast Food Industry implies about the food that can be prepared and served quickly. The approach of ready to take and ready to eat food made the fast food industry a global industry today. The word Fast Food stands for Hamburgers, Pizzas, fries and drinks, canned or packaged ready to drink beverages and many...

References:  Besanko David, Dranove, D and Stanley M(2004) Economics of Strategy, 3rd Edition, John Willey and sons.
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