Mcdonald's Five Forces Analysis

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Page 1 1. INTRODUCTION McDonald's is an American company operating in Singapore, which was established by Maurice and Richard McDonald in 1940. It is the biggest line of fast food eateries. The pioneer outlet was established in Singapore in 1979 at Liat Towers. More than 115 McDonald’s restaurants around the island serve more than 1.1 million consumers weekly. Approximately 9,100 employees keep Mcdonald's running immaculately. McDonald's has been indexed on the NYSE as a public company as MCD. The core commodities of McDonald's are hamburgers, nuggets, soft drinks, french fries, and breakfast. MUIS (The Islamic Religious Council of Singapore), the regulatory body, authorized McDonald's menu in 1992 for consumption by Muslims by issuing…show more content…
Porter's Five Forces 3.1 Threat of new entrants The threat of new entrants in Singapore is high due to the growing population and demands of the food and beverage industry. Despite the fact its simple to enter the food industry, it is difficult to build a distinctive brand name such as Mcdonald's. The high cost of entry such as high capital requirements, goverment regulations, advertising for brand identification will make initial growth slow. In addition, there will be high research adn development costs to factor in promoting a new brand. The existence of organisations with solid brands as McDonald's will make the new entrant struggle to penetrate and thrive within the market. 3.2 Threat of substitutes The threat of alternative food and services for McDonald's is tremendous. To be precise, replacements for Mcdonald's comprise of other fast food restaurants whereas bars and clubs can be alternative locations for people to catch up with a friend or simply to spend their time away from work or family. The government is encouraging citizens to consume balanced meals and the population are eating healthier. Competing businesses by major competitors like burger King, KFC and Subway keep the risk of alternatives…show more content…
For Mcdonald's, the supplier market is vast due to numerous companies who are capable of providing the products and materials for fast food restaurants. The products that Mcdonald's uses are not exclusive, differentiated nor crucual to a fast food outlet's market profitability. Bulk of this is due to the making hamburgers, drinks and french fries all using similar materials. 3.4 Buyer

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