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Industry For Rivalry Among Existing Challengers Marketing Essay

The barriers to admittance are very high for new entrants, in junk food industry McDonald's they may have achieved high economies of scale and also have better access to raw materials and distribution stations. so new entrants may find that a high cost of investment is necessary in securing plant and equipment. So these factors will be threats of new entries for new entrants. However in junk food industry is getting and presenting an increase in sales at the mean time because of their affordable prices with credit crunch, it creates it attractive to new business.

BARGAINNG Electric power OF BUYERS

In fast food industry McDonalds is maintain the quite low bargaining electricity of buyers. In this case identified to be pretty low risk for McDonald's as consumers have little control over the versions in the merchandise offerings, price, and place of distribution. However, Mother company should happen and any necessary adaptation made. The business should keep customers satisfied, as switching cost is quite low and the probability of switching to some other brand in case of dissatisfaction is relatively low. But for that possibilities are extremely low because McDonald has created its image one of the consumers through brand, differentiation, quality, number, environment, customer support, offers and uniqueness.

BARGAINING Vitality OF SUPLIERS

In this case Supplier electric power is quite high in this junk food industry since there is lesser volume of suppliers, and customers cannot change to other brands because every brand has generated its own image in the consumer's mind, that is why consumer cannot swap to other brands. On the other hand, McDonald has generated long term relationships using its suppliers and McDonalds has a great deal of affect over their suppliers, because of the fact that it helps them and trains them, the threats from suppliers are quite low. Due to the range of McDonald's operations, suppliers are keen to keep up their agreements with company. McDonald's internationalization may possibly also mean increased sales potential for suppliers.

THREATS FROM SUBSTIUTE PRODUCTS

Substitutes product means, which can do the similar function as the original product can do. In this field It could be argued that the risk of substitutes to McDonald's originates from pizza hut, KFC, Din more, burger's ruler and other local fast food firms. However, most of the above firms don't have the same stranded of convenience that McDonald's provide, and folks going to McDonald's for eating and entertainment. This makes the list of substitute products quite long specially ENTERTAINMENT & ADMOSFIER.

INDUSTRY FOR RIVALRY AMONG EXISTING COMPETITORS

Every organizations looking for competitive advantages. It's the forces that contains their company above others in their business and provides them durability of survive in market. Among the every organization's competition is based on the nature of business. The concentration of firms within the fast food business is low due to the established existence of McDonald's, Burger Ruler, Pizza Hut, Dine More and KFC. However, using markets, McDonald's will face competition from founded competitor junk food outlets. for example McDonald's and KFC, and they provide similarly attractive products and services, If clients don't get customer satisfaction from McDonald's, they'll go to KFC or someplace else so they should to be continually satisfied as well as should be very innovative and unique in the products at regular intervals to draw in and maintain the customers.

RELATIVE Electric power OF OTHER STAKEHOLDERS

In every business companies or industry has stakeholders. It is vital that multinational companies highly consider and value their general public or stakeholders.

Stakeholder for McDonald's Sri Lanka includes.

Customers

Franchise Holders

Employee

Suppliers

Community groups

Share holders

Investors- since McDonalds is a general public company, our shareholders are key stakeholders. Shareholders, it's a one of the very broad category however, not quite as extensive. Shareholders can be individuals, companies, pension funds, mutual money, etc. Every investor is handled on their own and with company support as well. McDonald's make sure the shareholders or shareholders money that is preferable to what they could get it from any place in fast food industry.

Employees-, McDonald's employees rely on us for income and benefits, The employees produce and sell the merchandise and services to the external consumers. In essence, employees are available a huge part of these lives and must acquire reasonable pay and especially Professionals are guaranteed a good salary if indeed they can develop the organization and make it profitable. They regularly work for 50 to 60 hours in a week.

Community- McDonalds needs the community to make it through in competitive market. Because the community builds path way, provides electricity, security, communication and technology and everything. In turn, company are obliged to keep carefully the community's environment clean and green.

Suppliers- if any organizations that cannot endure without good suppliers. McDonald's must work with their suppliers with good romantic relationship and pay them a fair price for his or her products and services. And also already McDonald has established long term relations with its suppliers and McDonalds has a great deal of impact over their suppliers.

Customers- consumers are one of the important stakeholders, McDonalds should provide fast, useful, good food and customer services on a consistent basis. Then only firm can successfully make it through.

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