Explain how Porter's Five Forces impact McDonald's business with examples. • Rivalry among Existing Firms •...

Explain how Porter's Five Forces impact McDonald's business with examples.

• Rivalry among Existing Firms

• Threat of New Entrants

• Threat of Substitutes

• Buyer Power

• Supplier Power

Solutions

Expert Solution

In this Five Forces analysis, McDonald’s experiences the effects of external factors at varying intensities, based on the variations among markets around the world. For example, the U.S. market presents a competitive landscape different from that of the European market. The company must implement strategies to meet these external factors and minimize their negative impacts. Considering the combination of market conditions, this Porter’s Five Forces analysis of McDonald’s establishes the following intensities of the five forces:

Competitive rivalry or competition – Strong Force
Threat of substitutes or substitution – Strong Force
Threat of new entrants or new entry – Moderate Force
Bargaining power of buyers or customers – Strong Force
Bargaining power of suppliers – Weak Force

jeff jeffy answered 2 years ago

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