Massengill’s Department Store

Contents

1. Introduction 5

2. Industry analysis 7

3. Industry Analysis - Michael porter's five forces model 9

Figure1: The 10 most valuable fast food brands worldwide in 2015 12

4. A critical comparative analysis of the competing strategies of McDonald and Starbucks 13

5. Conclusion and recommendation 16

6. Appendices 17

7. References 20

1. Introduction

Fast foods refer to food that can be prepared and served in shortest time. The demand and trend for fast foods differs from regions to regions. The fast food industry operates in both international and national level. Due to increasing population and favorable demographics Asia pacific and rest of the world is the fastest growing market for the fast foods. The other reasons for increasing demand for fast food in these regions are higher disposable income and increasing habits of using westernized food.

Unlike other industries this industry is responsible for the wellbeing of people. So most fast food outlets try to maintain public image with the introduction of new healthy foods and expand their market share.

“The Global Fast Food Restaurants industry has managed to grow over the past five years despite being battered by a weakened global economy and society's increasing awareness of the health risks associated with a diet high in fat, salt and sugar” (Global industry research, 2015).

McDonals,starbucks,Subway,KFC,Chipotle,PizzaHut,TimHortons,Domino’s Pizza, Burger King and Panera are main players in the fast food industry. The global fast food market share is dominated by few firms and competition seems oligopolistic features.

According to (Forbes, 2015) the fast food outlets serves varieties of foods including cheeseburgers,hamburgers,frenchfries,fillet,salads,sundaes,pies,iced and hot drinks.

This report is an analysis of fast food industry and competing strategies used by the global leading outlets, McDonalds and Starbucks. Industry was analyzed using the Porter’s 5 Forces Model....