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Problem Identification of McDonalds

Autor:   •  March 28, 2011  •  Essay  •  288 Words (2 Pages)  •  2,524 Views

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Problem Identification

- Tv advertisement has had the courage to say their opinion about one of the leading brands in the world of fast food, Mc Donald's. At that time the narrator just said a few words, "high cholesterol, high blood pressure, heart attacks."

- Junk Food is a term describing fod that is not healthy or have little nutritional content. Junk Food contains a large amount of fat. Fast food like hamburgers, French fries from Mc Donald's

The fast food industry is a revolutionary industry, which has taken the world by storm. With fast food restaurants showing up, what seems like on every corner, it's interesting to analyze the competitive strategies companies in this industry use in order to survive. McDonald's, with more than 30,000 restaurants worldwide is certainly no exception. A good way to analyze the strategies is by using the Porter five forces competitive model. The Porter model looks at what strategies a company uses to "effectively counter 1) the rivalry of companies in the industry, 2) the threat of new entrants, 3) the threat substitutes, 4) the bargaining power of customers, and 5) the bargaining power of suppliers."

The first of the five forces looks at rivalry within the industry. For McDonald's, this includes all other fast food businesses. " McDonald's recognizes that it is up against not only other larger burger and chicken chains but also independent owned fish and chips shops and eat-in or take-out establishments." Some of McDonald's competitors include: Burger King, Wendy's, In and Out, Taco Bell, and Jack in the Box. As mentioned above, the fast food industry is a very dynamic and competitive industry, so it is important for the McDonald's corporation to develop strategies which will keep them

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