Business Case Study Analysis
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Additionalguidelineforcaseassignment14.pptxAdditional guideline for Case Assignment 1
With McDonalds as an example (focal firm)
Analysis of Industry Environment (from McDonalds perspective
Fast-food Industry
Strategic Group 1 (Chicken-based products) (2)
SG 2 (Hamburger products) (1)
Meat suppliers
Beverage suppliers
End consumers
(3)
(4)
Growing local burger joint (5)
Five forces analysis
Rivalry among (direct) competitors
Threat of substitute products
Bargaining power of suppliers
Bargaining power of buyers
Threat of new entrant (Barriers to entry)
(1) Rivalry among (direct) competitors
How many direct competitors exist?
How direct competitors and the focal firm compete? (e.g. compete in price vs. compete in product differentiation)
Geographic scope of the focal firm vs the geographic scope of its direct competitors
(2) Threat of substitute products
How many close substitute products available in the market?
How different the focal firm’s main product and the substitute products, and does this difference matter for consumers?
Price of focal firm’s product vs price of substitute products?
(3) Bargaining power of suppliers
For a particular materials/inputs, how many suppliers available in the market?
Does the input have strong influence on the performance of the end product of focal firm?
How easy it is for the focal firm to switch supplier for a particular input?
(4) Bargaining power of buyers
How many buyers (potential buyers) that focal firm faces? Or is there a single buyer dominating the market?
How easy it is for the focal firm’s consumers to switch to focal firm’s competitors?
How loyal are consumers? Is there any loyalty program?
(5) Threat of new entrant (Barriers to entry)
Is there potential entrant to the focal firm’s strategic group? (Potential entrant can come from producers of substitute product, or growing start-up)
Can the new entrant differentiate its product?
How expensive it is to imitate focal firm’s business model?
Is there any government regulations that can limit/encourage the new entrant?
Does the potential entrant have superior technology/brand name/financial resources compared to the focal firm
