They might have a couple of differences in the menu but at the end of the day, the burgers and their special sauce will taste exactly the same and that’s what makes McDonald’s® so huge in the fast food industry. Based on this, threat of new entrants for McDonald’s® is a factor they must consider however it is of moderate issue and other elements do come before
This would allow for people that cannot afford the higher cost meals to be able to purchase products/food at a Steers franchise but it would also allow Steers to continue making financial gains by using a wide variety of strategies to satisfy the public and meet the customer demands. Porter’s Five Forces Model Porter’s Five Forces Model for Steers Availability of Substitute Products Substitute products not only include other fast food franchises that sell the same type of product such as McDonald’s and KFC Substitute products also include food franchises such as Debonairs, Primi Piatti, Anat and Fish & Chips. Level of Rivalry in the Market There are several other fast food franchises that are in the same area of the shopping mall as Steers, this will allow for customers to choose which franchise they want to purchase
7. Discussion McDonalds and PepsiCo were forced to undergo changes to adapt to the current market because of one important aspect- customers. These changes were needed to stay relevant and to continue to attract customers and profit. It can be seen here that the role of customers is a vital one towards a company’s survival against other competitors and to continue to gain profit while staying relevant to the market’s needs. Whether it is McDonalds who decided to add more healthier food options on their menu to counter attack the uproar from their customers and media or PepsiCo who decided to revert back to their original Tropicana cover design due to the intense criticism of its look from their customers, these multinational enterprises took action and acted based on their customers’ feedback and needs to match the current market.
All of these values are infiltrated through all levels of the company, which keeps McDonald 's thriving as a successful fast food chain restaurant. Risk management is imperative to McDonald 's. They have a risk assessment tool that they use to determine the country risk: which pertains to the specific country/region they are located in; industry risk: pertains to supplies produce; and facility risk: which is a combination of both country and risk groundwork. These factors are all part of the risk assessment tool that is used in each of their companies to help them with risk management. Secondly,for Out Back steakhouse.
They become main choice for customer because their service that they used in entertain customer actually attract the customer to buy their product. They also able maintain their quality in making a burger although they use high technology in process a burger. Furthermore, it help their productivity more effectively and this is because they use a concept just in time in their management. Just in time actually has help a lot McDonald to sustainable in fast food industry. It encourage McDonald to increase their achieving to gain profitable in making fast food.
This just show how well established McDonald’s have become over the last 37 years in Ireland. A huge strength for McDonalds would be how they operate in many diverse cultures and have the ability to adapt to local tastes for example in the US you would find supersize meals whereas this would not be found in Europe, because it wouldn’t suit the culture. McDonalds is a huge franchising business more than 80% of restaurants is owned by independent franchisees. This is good for McDonalds because they still have a say in how the business is run and how the restaurants should operate on a daily basis. This gives McDonalds more time to focus on more important matters like its marketing campaign which is very important to any business.
There were a multitude of fast food options across cuisines like Udipi, Chaats, Namkeens, Pizza, Sandwich and Burgers, Frankie, Pav Bhaji, Vada Pav and Chinese. McDonald’s through their survey found a large eating out market in India with an increasing propensity to spend by customers. However, they understood that India 's want to taste American fast food could not substituted for Indian food. Hence, in order to survive in a rich cultural country like India, adapting McDonald’s menu to Indian tastes was quite critical. The India strategy was divided into the following phases- entry, building the supply chain, aggressive growth and penetration.
1: Health It is clear that health is fast becoming one of the biggest concerns of Irish consumers when considering what food they purchase. In both the Social and Political factors, health came up as a point in which Irish consumers are now focusing on. This shift in public perceptions is one that can be beneficial for Boojum. A wrap filled with meat, chicken and vegetables is surely a healthier alternative to a McDonalds and this is something they should be focusing their marketing strategy on. 2: Technology With more and more people looking at ways in which they can make food easier and more convenient for themselves, Boojum should be looking at joining up with platforms such as Just-Eat and the delivery of their products.
Threat of new entrants Take-A-Box is entering fast food industry as a new entrant and it is consider high competitive of force. Economies of scale is one of the barriers to entry this industry. Take-A-Box need to accept the cost of disadvantage in order to compete with those large scale existing competitions. Moreover, Take-A-Box need to spend a huge amount for advertisement in order to build the brand awareness which is to overcome the barrier to entry of product differentiation. Take-A-Box providing healthy fast foods which can easily differentiate compare to the traditional fast foods restaurant such as KFC or MCD.
Although food preference varies among countries and cultures worldwide, McDonald’s remains on top as one of the most powerful restaurant chains in the world. How is that possible? When introducing its food to different areas of the world, McDonald’s adjusts its menus and even prices to the consumers’ preferences (Haim, 2013). For instance, instead of a fast food, McDonald’s started a chain of fancy restaurants in France because the French do not consume fast food as they like to take their time eating (Haim, 2013). What is more, they even opened a vegetarian restaurant in India because most of the population there is vegetarian (Haim, 2013).