McDonalds Essays (515 words) - Fast Food, Fast Food Restaurant

Using Porter?s five forces model to analyze the fast food industry comes down to; first is the threat of the entry of new competitors. The threat of the entry of new competitors for example, like McDonald?s there will be other fast food restaurants like, Burger King, Wendys, and Jack in the Box, who are all competing against each other to see who?s the best restaurant and the best food. Second there is the intensity of competitive rivalry, which is a powerful competitive strategy and also how they advertise their products. McDonald?s offers different kinds of food compared to other fast food restaurants, by creating their own taste and style. Other fast food restaurants have their own food and style themselves which McDonald?s cannot copy from them. I think that?s what makes it so competitive some people might prefer McDonald?s burgers and others might prefer Burger King burgers. Thirdly we have the threat of substitute products or services. Some people have their own opinion?s by sa ying McDonald?s offer foods that are really fattening, so they would move onto other fast food restaurants that may provide healthier foods. It?s just some way to substitute McDonald?s food with other fast food restaurants. Even prices can affect this force, some places will be cheaper and some more expensive. That is Next is the bargaining power of customers, which affects the customers because of the prices offered by other restaurants. An example of this would be the dollar menu for McDonald?s, it offers a variety of food for an affordable price and other restaurants have adapted to this strategy as well. McDonalds they have other foods that other restaurants cannot offer. Finally there is the bargaining of power of suppliers, there are many suppliers that each fast food restaurants may use, or new employees that each restaurants may seek to hire. McDonald?s has provided millions of Americans their first jobs. I think that McDonald?s competitive advantage over its competitors is their dollar menu. McDonald?s dollar menu generated more than 15 percent of its sales, also their creation of breakfast food which became popular when the McGriddle breakfast sandwich first came out. Also, one of their break through was the Big Mac hamburger, when it first came out in 1968, it was an immediate hit. McDonald?s was faced with a lot of problems like, the falling of their services and quality of their chains. To fix these problems McDonald?s decided to bring back retired vice chairman James Cantalupo. The first step Cantalupo did was cut back on expanding McDonald?s stores and he started to focus on making more sales. By doing that McDonald?s offered new products on their menu, like the McGriddle breakfast sandwich which attracted a lot of customers and became a hit. McDonald?s also focused on advertising, the phrase ?I?m loving it? was introduce by pop star Justin Timberlake and it was widely noticeable by the public. Overall, what Cantalupo did improved the business of McDonald?s drastically