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Mcdonald's Five Forces Analysis

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Buyers (Bargaining Power of Buyers)
The power of the (buyer) customer can do one of two things, make or break your business establishment. With the power that customers have, you (the business) must make the adjustments. These adjustments include the quality of the product, customer service, and lower of prices. One example would be Burger King vs McDonald's. Burger King has a daily special $2 for $5 on their breakfast sandwich; as does McDonald’s. This strategy is enticing to customers, which leaves the buying power to the customers. In the fast food industry, the bargaining power of the buyer is very strong. Consumers demand good quality, a unique experience, complimented with a reasonable price. If prices are set too high, consumers can easily switch to a substitute.

Suppliers (Bargaining Power of Suppliers)
The bargaining power of suppliers is one of the five factors that control the amount of competition in the restaurant industry. Suppliers can threaten to reduce the quality of products or raise prices, which will make it hard for restaurants to make up for cost increases by raising their own …show more content…

New businesses should utilize technology and offer self-serve kiosks and mobile apps for ordering and paying to help keep costs down. This is a very important aspect to consider when entering the fast food industry because as a new business comes along this whole idea of “fast” food. If you haven’t noticed by now, technology is taking over the world. Everything and anything can be done through a smartphone, tablet, or computer. In today's society consumers rely on three important aspects, quality, affordability and convenience. Where can I go to grab a quick bite, that is not too far out of my way, and can SATISFY my taste buds for a decent price? There is always room for new business in the fast food industry, but whether they will survive with the competing businesses is another

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