BGMT 495 Disc ***Zeek the GEEK only***

Running head: BGMT 495

BGMT 495 2

Steven:

The industry of fast food has truly changed over the last 20 years, and it is continuing to change every day. The company, McDonald's used to be the largest fast food chain in the world. According to Introduction to Strategic Management (2014) In 2011 that changed, and Subway has taken the lead with 33,749 compared to 32,737 for McDonald's, (Introduction to Strategic Management, 2014). People around the world are becoming more aware of their diet and health. The availability of eating a healthy meal for a low price from a fast food restaurant is becoming more appealing. After Jared Fogle was able to lose 245 pounds in 1999 people everywhere wanted to be part of his success. They wanted to look and feel healthy, and they found out that Subway could help them achieve their goal. The external forces that are affecting McDonald's, Kentucky Fried Chicken, and Taco Bell are that they are not as health conscience when it comes to some of their meals. These other fast food restaurants are doing their best to have healthier meals for customers.

Unknown (2014).  Introduction to Strategic Management.  Washington, D.C.:  The Saylor Foundation

Adriana:

The competitive force I picked is “Threat of Substitute Products/Services” and the industry I picked is Walmart. Per chapter 3 in this week’s readings, substitutes are offerings that differ from the goods and services provide by the competitors in an industry but that fill similar needs to what the industry offers. (Evaluating the External Environment, 2014) Some of the top competitors for Walmart are Target, Amazon, and Best Buy some of the key drivers of the company’s competition is low cost products and same day delivery. The external competition for Walmart is directly affecting the company in the way they do business and keep the power of bargaining for its customers and suppliers. Walmart needs to make sure it continues to offer low prices and availability of products without it affecting profit or quality of products. This can cause Walmart concerns as the threat of other stores offering lower prices or faster delivery is there and continues to create that variety of substitutes. Amazon has mastered the overnight delivery market and Target also continues to be competitive with Walmart by offering lower prices. The substitutes these retail stores provide does give them the extra edge over Walmart and there is where the competition lies for the stores to stay relevant and keep customer satisfaction and loyalty.

Evaluating the External Environment (2014). Washington, D.C.: The Saylor Foundation  

Walmart: Five Forces Analysis (Porter's Model) - Panmore Institute. (2015). Retrieved August 29, 2016, from http://panmore.com/walmart-five-forces-analysis-porters-model-case-study