Analysisng

McDonald’s Using
Porter's Five Forces
Latipova Dildora
Table of Content
• Overview of Porter five forces
• Company background
• Analyzing McDonald’s
Porter Five Forces

FORMED BY MICHAEL E. PORTER , HELPS IN ANALYZING THE INDUSTRY

HARVARD BUSINESS SCHOOL IN 1979 AND THE BUSINESS STRATEGIES
Overview of
Porter's Five
Forces
1. Threat of New Entrants
2. Bargaining Power of Buyers
3. Bargaining Power of Suppliers
4. Threat of Substitute Products
5. Competitive Rivalry
Company
Background
• The first McDonald’s was founded
on 15 May 1940 in California
• Founders Richard and Maurice
Macdonald’s
• World’s largest food-service chain
with more than 31,000 fast-food
outlets in 199 countries serving
 Threat of New Entrants (Low)

ECONOMIES OF SCALE BRAND LOYALTY CAPITAL REQUIREMENTS ACCESS TO DISTRIBUTION

CHANNELS
Bargaining Power of Buyers (Moderate)
Standardized Products

Brand Loyalty

Moderate Price Sensitivity

Menu Variety
 Bargaining Power of Suppliers (Low)

Multiple Suppliers Volume Purchase Brand Recognition

 Threat of Substitute
Products (Moderate)

• Diverse Fast-Food Chain

• Healthy Fast-Food Chain
• Home-cooked Melas
Competitive Rivalry (High)

NUMBER OF PRICE WARS TECHNOLOGICAL

COMPETITORS ADVANCEMENT
 In summary, the fast-food industry, exemplified
by McDonald's, operates in a highly competitive
environment. New entrants face significant
challenges due to high barriers, while customers
have options, but their bargaining power is
limited. Suppliers, too, have relatively low
influence. Although there are substitutes,
Conclusion competitive rivalry among established players is
intense, driving continuous innovation and
adaptation. In this context, companies like
McDonald's must remain agile and customer-
centric to navigate the challenges and thrive in the
fast-food market.
Thank you