Local Marketing Role

 In local marketing role, the business is in multi-domestic market, wherein the manager must
learn and be familiar with the resources of their local market.

When we say Multi-domestic markets, these are product markets in which their consumers have
specific taste, preferences, and probably has functional requirement from one another’s. Meaning
to say, the manager or the owner of the market must consider or learn about his or her customer’s
preferences and the resources available in its place in order to have a successful and gain profit.

 “Go globally however act locally”

This mindset must be considered of every local firms to focus on their local environment but always
aim to go globally. All small acts can eventually benefit a firm, as long as it can guarantee its
consumers and satisfy the needs of your customers. Your first goal is not only to sell nor trade, but
rather to learn how to sell and trade.

Firm Specific Advantage

 When we talk about the firm specific advantage, it refers to competitive advantages wherein
they are constrained by the individual firm alone, and by which the directors realize how to
showcase and market their;
o trademark/brand name
o image
o and how their products to be positioned in the eyes of multi-domestic market.

In other words, firm specific advantage focuses on the firm itself. Their image as well as their brand
name becomes their major asset to be unique and diverse towards their different competitors. The
firm will initiatively make a specific advantage wherein they think these cannot be duplicated and
owned by their rivalries.

FSA: Porter’s Five Forces

Rivalry

 There is an extreme level of rivalry since there are other firms associated with the same industry
of McDonalds such as Subway, KFC and many more.
o In other words, the fast food industry around the world becomes one of the most
competitive business today. The competitors of Mcdonalds are other fast food
restaurants such as Wendy’s Burger King, Jollibee, KFC etc. that offers almost the same
variety of Mcdonalds products. Each of them (including Mcdonalds) are aggressively
spending or focusing on innovating and advertising their deals and menus. All of them
are also continuously opening their new franchise to increase their access to new
potential customers. Therefore the increase of number of competitors made Mcdonalds
have strong force in terms of competitive rivalry.
New Entrants

 The level of threats of new entrants is moderate because the demand of the consumer is
continuously evolving when it comes to taste preference in which they might satisfy their selves
through new established business in the same industry.
o On international level, the threat of new entrants is a weak force as there are several
entry barriers. To become a successful rivalry or a competitor of Mcdonalds, the new
entrants should have to create a large number of outlets throughout the globe which
requires a large amount of capital investment and time. This makes the new entrants
difficult to step in and produce competition. But on the other hand, in terms of local
level, the threat would be higher force. 2 to 3 outlets of McDonald are enough, and
economies of scale are easy to stablish. Therefore, in conclusion, the overall force for
new entrants of Mcdonald is moderate.

Substitutes

• The intensity of substitute products is high, consumers have their own particular taste
preference. Therefore, even though we have the same menu with other competitors, people
will still prioritize specific menu based on their preferred taste.

o The substitutes of the meals of McDonalds are meals of other slightly different fast food
restaurants such as KFC, and Pizza. Most of these substitutes are competitive in terms of
consumer satisfaction and quality. Switching to these substitutes do not have any
associated switching cost. Also, many health concerns have been raised against the
products of McDonalds causing consumers to switch to other healthier substitutes.
Therefore, the threats of substitute are strong of high force against McDonalds.

Buyer Power

• The level of intensity of buyer power is strong or high since McDonald Company have different
rivalries and competitors that offers almost the same products.

o The buyers of McDonalds, or their customers have many options available in the
market. They can easily switch from one restaurant or fast food chain to another
without any switching cost, especially when they are unsatisfied with the product of
service. Customer’s loyalty to fast food restaurant is decreasing day by day with so many
competitors. The buyers can easily protest any price increases by McDonalds and shift
to another competitors. This made the buyers in a strong position of bargaining to
influence McDonalds to retain its prices if it wants return customer. Therefore, the
buyer power is strong.

Supplier Power

• There will be a weak or low level of supplier power of a McDonald has. The raw materials such
as chicken and potatoes that they use are only available through a large number of suppliers.

o There are only certain number of suppliers that would be willing to become the
suppliers of McDonalds. Therefore, the suppliers are in no position to bargain with
 McDonalds or attempt to force it to increase their product prices. McDonalds therefore
can easily switch to suppliers with little switching cost.

o One great example for this is the Heinz Ketchup. Years ago, they use Heinz ketchup for
their…,,