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In McDonald’s case, they actually have a competitive advantage because they have already entered many different countries and are succeeding in these countries. Each firm within the food-service industry is susceptible to losing customers because there are relatively no switching costs for consumers, therefore the industry has to rely heavily on their brand image and quality of products. McDonald’s has a number of competitors; however they are currently the leader of the industry in market capitalization with a cap of $39.31 billion.
Threat of New Entrants:
The threat of new entrants in the fast food industry is high because there are no legal barriers which would keep them from entering the industry...
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Common topics in this essay:
- A Study Of International Marketing Strategies That Help Firms To Achieve Competitive Advantage: Japanese Firms Being Successful In India Since 1980
- Analysing McDonalds (fast food outlets) using the Porters 5 forces model – sometimes called the Competitive Forces model.
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