5 Force Fast Food Industry

In: Business and Management

Submitted By chenjh43
Words 1401
Pages 6
JunHong Chen, Zhexian Xiong
Fin310U
William Newman
EX3 Industry Analysis

Industry Analysis: Fast food industry
Introduction
Fast food industry report provide an analysis of the U.S. market environment of the fast food industry, evaluates the marketing activities and list several key player such as Panda express, McDonald's and Burger king as examples. The 5 force concepts framework is used for analyses the industry rivalry, threat of substitutes, buyer power, supplier’s power and entry barriers. (Porter's Five Forces)
Five Force concepts rank
Rivalry among firms: High Threat of Substitutes: High
Buyer Power: Low Power of Supplier: Low
Entry barriers: High
Industry rivalry:
Competition among fast food companies is really high, because there are a lot of competitors and fast food companies all try to again competitive advantage over the other companies in this industry. There are close to 50,000 fast food chains across the United States, with McDonalds being the largest restaurant chain. In the world, there are more than 500,000 fast food places. People can easily image the competitive because there are so many firms are sharing the fast food market. The increased presence of different fast food companies means a more competitive market. Fast food firm can gain a competitive advantage by some common ways such as product differentiation, channels of distribution and exploiting the relationship with supplier and customers.
Industry rivalry is not a new phenomenon, there are typically many players but there are often two dominant players try to beat each other in the market place. The two dominant players of fast food are McDonald and Burger King; Burger King is the one of biggest fast food firm in the world, yet it is still facing great competitor: McDonald. They are fighting…...

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