In: Finance
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
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: