Poter’s 5 Model of McDonalds

PORTER FIVE FORCE THEORY.

Entry:

The burgers were not included in the Indian market ever before, as the McDonald’s did its entry in Indian market with several new products. The company has been success in many other countries before but it wanted to survive in Indian market. It wanted to serve their food as a fast food and during their entry period fast food culture was just started in Indian hotel scenario. It was necessary for company to built its brand name and influence people by its name. The company also had different foreign player with it within short time. But McDonalds was focused and changed its product as per Indian taste.

Buyers/supplier power:

The initial cost of the product was high so only it has few customer who would visit its franchise. But with time it started minimizing its price and targeting children as their main customer. The company has its own centralized kitchen in every area so that it maintain same standard of quality and service of food. The company deals with one supplier for raw materials so that it reflects in product. It also maintain same price for company irrespective of market price fluctuating. This helps in maintaining control over prices and expenditure.

Substitutes and complements:

The company has competitor which has product more or less on the same background and also come under fast food ventures. The competitors would be mainly pizza hut, Kentucky fried chicken, dominos and others such as subway. The company has it product which includes substitutes like French fries, burger, softies. If the general price of product