Clara Lee Sengco. Figure 1 McDonalds Porter’s Five Forces Analysis. Threat of New Entrants. Download. The company sells quality food and beverages at various points throughout the world in more than 100 countries. The Five Forces Model Of Mcdonalds 786 Words | 4 Pages. Strategic Management Essays, Term Papers & Presentations . McDonalds is a globally well known chain of fast food restaurants that is comprised of both company owned and franchised restaurants. Loading Preview. The model was first published in Michael Porter’s 1990 book The Competitive Advantage of Nations. The National Diamond Model This is an economical model of competitiveness study developed by Michael Porter in his book The Competitive Advantage of Nations, where he has published his concept of national competitiveness on why particular industries become competitive in particular locations and in the particular business. Porter’s Diamond of National Advantage is a model developed by Michael Porter and this model helps in understanding the comparative position of a nation in global competition. I have chosen fast food chain of McDonald for my five forces Porter analysis. Porter’s focus is on the domestic country rather than which foreign markets have been targeted. McDonald's Five Forces Analysis (PORTER'S MODEL. The five forces model of Porter is an analytical tool that identifies the five forces industry utilizing the intensity of competition in an industry, and its profitability. Porters diamond model . Porter's diamond is a model used as part fo the strategic analysis stage of the strategic planning process. Porter’s Diamond model is an economic model that is developed by Michael Porter that aims to highlight and explain on why particular industries or nations become quite competitive in a particular location and on the national and international levels.. Michael Porter is one of the highly renowned and famous authorities on the corporate strategy and economic competition. Bargaining power of McDonald’s suppliers is low. This model can also be used for major geographic regions of a single country. The economies of scale is fairly difficult to achieve in the industry in which McDonald s Corporation operates. ... relevance to service based companies such as McDonalds. The four factors influencing the competitive advantage are: – Firm strategy, structure and rivalry – Demand conditions – Related and supporting industries – Factor conditions We will explain the international competitive position of McDonald’s Corporation using all those factors. This section analyses McDonald s Corporation using each of the five forces of Porter’s model. McDonald’s works with a number of large suppliers such as Coca-Cola Company, Clorox Company, Dr. Pepper Snapple Group Inc. McCormick & Company Inc., International Paper Company, Sealed Air Corporation and others. Porter’s Diamond Model is a diamond-shaped framework that explains why specific industries in a nation become internationally competitive while those in other nations do not. It is important to conduct Porter’s five forces model for McDonald’s to understand the changing industry dynamics and provide insights for future strategic planning. McDonald's Five Forces Analysis (PORTER'S MODEL. McDonald s Corporation Porter’s Five Forces Analysis. Porter’s Diamond Model (see figure 1 below) suggests that the competitive advantage of a nation is affected by four determinants namely: “Firm’s strategy and rivalry”, “related and supporting industries”, “demand conditions” and “factor conditions” (Porter 1990, p. 71). McDonalds Five Forces Analysis . Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. 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