JAGAN INSTITUTE OF MANAGEMENT STUDIES, ROHINI
eople dining behavior-
people of different area having different diningstrategy. Most of the people do not like fast foods especially in Asia andEurope and must have to convince the people about the fast food behavior.
hreats of Substitutes -
Substitutes are the products, which can performthe same function as the original product can perform. People go toMcDonald's for eating, and entertainment. This makes the list of substitute products quite long, mainly consisting of local and continentalfood, e.g., Karahi, Tikka, Kabab, Burger, etc.
Threat of new entrants will be high in fastfood industries because the entry barriers are very low in terms of lowcapital requirement and easy access to the raw materials. No organizationhas any kind of exclusive control over resources. Another factor thatincreases the threat of new entries is the high profit margins in theindustry. Any how some entry barriers exist in terms of productdifferentiation and economies of scale and McDonald luckily holds these barriers over the others.
How McDonalds handled the opportunities and threats
McDonald¶s success was largely dependent on its strategy to handle theopportunities and threats. The time when McDonald¶s came, there weremany opportunities and threats present in the market and McDonald¶scorrectly matched its strengths with opportunities and worked on itsweaknesses to eliminate the threats.