McDonalds

It has always been the goal of McDonalds to make sure that they monitor their performance and remain ahead of the competition. By using Porters completive forces model it is easy to see how McDonalds has continued to always be ahead of its competition. Porter’s competitive forces model included five different forces that break down the strengths of a company. These forces include the rivalry of different competitors, threat of new business in their market, threat of substitute product, and barging power of customers.

         McDonalds’ competitions include many of the other very well known fast food chains. They have to compete everyday with other restaurants like Bugerking, Taco Bell, Hardees and Wendy’s. it is the threat of being beaten by the completion that has driven McDonalds to become the number one burger supplier in the world. It is easy to see that McDonalds take the threat of these other restaurants very seriously. They have ways to compete with other food chains like fighting for airtime for televised events, and getting better real estate in some of the cities they share with other food chains.

        The threat of new competition is very real for McDonalds; every year thousands of different restaurants open business.  All these new food chains would love to steal some of McDonalds loyal customers. These food chains seem to focus on some of the things that customers feel they lose buy going to a national food chain like McDonalds. They tend to focus more on customer service, and concentrate on making more home-style burger.

        A substitute for McDonalds product can be easily found in every city. You can not drive more than five miles without seeing signs for different places to eat at in most major cites. McDonalds knows that you can get a burger and fries from pretty much anywhere, so they have invested in other ways to attract customers. Drives through windows make it more convenient for customers to get food on the go. Providing kids meals with toys make McDonalds a favorite amongst families with small children, and providing an area where kids can play gives parents some alone time.