Porter's ModelPorter's Model

COMPILED BY:-COMPILED BY:-

VARUN GUPTAVARUN GUPTA

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

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

For analysis we have focused towards two For analysis we have focused towards two fast food chains having international fast food chains having international fame, no doubt they arefame, no doubt they are

McDonald’s KFCMcDonald’s KFC

In fact, these will be our major competitorsIn fact, these will be our major competitors

McDonald’sMcDonald’s

• Self serviceSelf service

• Fast foodFast food

• Economic trends are only for elite classEconomic trends are only for elite class

• Preferred by youth and childrenPreferred by youth and children

• Menu preferences are burger, fries and Menu preferences are burger, fries and cokecoke

• Consumer confidence is of grade “A”Consumer confidence is of grade “A”

McDonald’sMcDonald’s

• Just tasteJust taste

• Menu pricing is highMenu pricing is high

• They have rare vegetarian trendThey have rare vegetarian trend

• Their success factor is international Their success factor is international fame, customer care and quick fame, customer care and quick serviceservice

• Increasing price day by dayIncreasing price day by day

Substitute productsSubstitute products

• Sindhi’sSindhi’s

• Gopal’sGopal’s

• Ruby TuesdayRuby Tuesday

• Yo ChinaYo China

• TGFTGF

Threat of new entrantsThreat of new entrants

• Burger kingBurger king• SubwaySubway• Wendy’sWendy’s• YumYum

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

Bargaining power of Bargaining power of customer’scustomer’s

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

• Low bargaining power of customersLow bargaining power of customers

Bargaining power of Bargaining power of supplierssuppliers• Coca colaCoca cola• Nestle-coffeeNestle-coffee• HeinzHeinz Bargaining power of suppliers within Bargaining power of suppliers within

the fast food industry would be the fast food industry would be relatively small, unless the main relatively small, unless the main ingredient of the product is not readily ingredient of the product is not readily availableavailable

Thank youThank you