Professional Documents
Culture Documents
MC Donald 5 Forces Analysis
MC Donald 5 Forces Analysis
Model)
McDonald’s position as the global leader in the fast food restaurant market is partly a result of
the firm’s effectiveness in responding to the Five Forces in its industry environment. Porter’s
Five Forces analysis model identifies the most relevant external factors that influence business
organizations. In McDonald’s Five Forces analysis, the focus is on the fast food restaurant
industry. The environment of this industry interacts with McDonald’s to affect the firm’s
potential and success. Nonetheless, its current global success indicates that McDonald’s
remains effective in addressing these five forces and in overcoming related issues.
McDonald’s Five Forces analysis gives insights about the company’s strategic
direction. McDonald’s strategies must align to the external factors in the global
fast food restaurant industry’s environment.
The results of the Five Forces analysis shows that McDonald’s needs to prioritize the issues
related to competition, consumers, and substitutes, all of which exert a strong force on the
company. A possible course of action for McDonald’s to address these issues is product
innovation. New McDonald’s products can attract and keep more customers. Also, this Five
Forces analysis shows that McDonald’s can implement higher quality standards to address
competition and substitution in this saturated market.
1.2Competitive Rivalry or Competition with McDonald’s
(Strong Force)
McDonald’s faces tough competition because the fast food restaurant market is already
saturated. This element of the Five Forces analysis tackles the effect of competing firms in the
industry environment. In McDonald’s case, the strong force of competitive rivalry is based on
the following external factors: