Marketing Essay Example | Topics and Well Written Essays - 3000 words - 1

Marketing - Essay Example Now the organization chosen to accomplish the study is McDonalds. In the external analysis the report will also shed light on the factors such as demographics, customers and also the cultural aspect. In the internal analysis section the study will emphasize on the missions and goals of McDonalds, its past marketing activities, human resources and research and development among the others. Furthermore the report will mainly try to uncover the strengths, opportunities, weaknesses and threats of the company. This will be accomplished with the help of a SWOT analysis. McDonalds Australia: A Brief Overview In the Australian context, the first outlet of the company was opened in the suburbs of Sydney which was known as Yagoona. With the course of time the company has been able to establish 780 stores and employs around 85,000 people across Australia. McDonalds Australia is not a listed company and is privately limited. It is basically a franchisee based venture where the restaurants are mo stly owned and opera rated by individual businessman (McDonalds, n.d.). Industry Analysis McDonalds is a retail food chain restaurant and it belongs to the fast food industry. Hence in order to analyze the industry Porter’s 5 forces model has been used. The analysis is presented below:- Porter’s 5 forces 1. Threat of new Entrants New entrants are described as the companies that are presently not competing within the given industry but has the potential to compete in the industry if chooses to do so. The start up of cost for such kind of business is low and there is easy access to the markets. Furthermore owing to the fact that Australia is politically stable and offers much favourable condition, the threat of a new entrant in this industry is high. 2. Threat of substitutes products Substitute products are characterized by the availability of same category products, which performs the same function as the existing product (DePamphilis, 2011, p.143). McDonalds is special ized in serving various types of Burgers to the customers. Nevertheless in this aspect there are many substitute products such as Pizzas, Sandwiches and other fast foods. Hence the threat of substitutes is also high. 3. Bargaining power of buyers The bargaining power of the buyer refers to the capability of consumers to bargain and lessen the price of the commodity or to increase the cost of the company by demanding more quality products and services (Hill and Jones, 2012, p.58). Bargaining power depends on how quickly the buyer identifies other sources. In this context there are not many established players like McDonalds, KFC and Subway among others. Hence the bargaining power of buyers is low. 4. Bargaining Power of Suppliers Suppliers are also other organizations which provide raw materials, service to the host organization. The bargaining power refers to the capability of the suppliers to increase the price of the raw materials or to decrease the quality of goods and service wi th the supply of substandard quality materials for low price. There are large numbers of suppliers of raw items for fast food industr