Porter 5 force of fast food industry in india

Changes in any one force will compel companies to reassess their market situation.

Porter fast food

Key players and their positioning was identified using a strategic-groups model, mapping brand value against global presence. Six factors play an important role in determining the nature and intensity of competition between established firms: concentration, the diversity of competitors, product differentiation, excess capacity, exit barriers, and cost conditions. It is not like, for instance, the cable industry where cancellation fees are prevalent or an electronics industry where The substitute products involve products available in the grocery shops or the restaurants or the food products such as pizza. Recycling is a prominent global issue and in response, McDonald's adopted recyclable packaging. Table: 2. Competition from daily-deals websites such as Groupon, reduces the cost of table-service restaurants, often to the same price-point as QSRs. On average, companies in growing industries earn higher profits than companies in slow growing or declining industries see figure 3. These players in the industry strive to keep a larger share in the market than their rivals, while maintaining a flow of profit and supporting the business towards growth. To re-create this chain effect in different markets, the recruitment and training processes are standardised globally. Entering the health-conscious fast-food market under the guise of a different brand would secure a larger market share and diversify their business, spreading the risk of failure. These fragmented markets are said to be competitive. It has the cultivable land, all the seasons for production of all varieties of fruits and vegetables, well developed agribusiness system that works in its own way. Obesity is just one of the many ailments caused by fast food joints. Today, consumers across the globe count on us to bring them all-natural, wholesome and delicious food that is also convenient and no-fuss.

The success of the supply chain is attributed primarily to their commitment to outsourcing non-core activities to expert firms. Short Term 6 months — 1 year 1 4.

porters 5 forces business examples in industry pdf

There is a big market for snacks in India as urban Indian consumers eat ready-made snacks 10 times more than their rural counterparts. Some preservatives added or created during processing such as nitrites or sulphites may cause adverse health effects.

Being the best means providing outstanding quality, service, cleanliness and value, so that they make every customer in every restaurant smile.

They are 1 Competitive rivalry 2 Power of suppliers 3 Power of buyers 4 Threat of substitute 5 Threat on new market entrants Each of these five areas can be looked with relation to McDonalds and there position in the fast food industry.

Further adaptation of meal size and price will cater for a larger market demographic. Joyce Yang Submitted by; Group Thus, in markets dominated by two companies, such as soft drinks Coke and Pepsiprices tend to be similar and competition focuses on advertising, promotion, and product development.

Food is mass-cooked and hot-held until service.

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Porter’s Five Forces