Porter's Model

COMPILED BY:VARUN GUPTA

Porter’s five forces analysis is a framework for the industry analysis and business strategy development

The five forces model looks at five areas of competition in the marketplace

For analysis we have focused towards two fast food chains having international fame, no doubt they are McDonald’s KFC

In fact, these will be our major competitors

McDonald’s
• Self service • Fast food • Economic trends are only for elite class • Preferred by youth and children • Menu preferences are burger, fries and
coke • Consumer confidence is of grade “A”

McDonald’s
• Just taste • Menu pricing is high • They have rare vegetarian trend • Their success factor is international
fame, customer care and quick service • Increasing price day by day

Substitute products
• Sindhi’s • Gopal’s • Ruby Tuesday • Yo China • TGF

Threat of new entrants
• Subway • Wendy’s • Yum •
Burger king

New entrants find that they are faced with price competition from existing chain restaurants

Bargaining power of customer’s
• Largest chain of restaurants serving
nearly 47 million customer daily with 31,000 outlet in 119 countries, employing 1.5 million people

• Low bargaining power of customers

Bargaining power of suppliers
• Coca cola • Nestle-coffee • Heinz
Bargaining power of suppliers within the fast food industry would be relatively small, unless the main ingredient of the product is not readily available

Thank you