Michael Porter's Five Forces Framework Research Paper

Michael Porter's Five Forces Framework - Research Paper Example KFC is has 44% of the total fast food market share in Malaysia and is the leading company. On the other hand, McDonald’s has 18% of the fast food market share and Burger King, Wendy’s, and other local companies take 18% of the market share. There are more than 365 fast food companies in Malaysia. The companies have opened many branches across the main cities. The availability of many companies in the market markets the competitiveness in the industry very stiff. Stiff competitiveness is very unhealthy for the new entrants in the markets as well as for the existing firms (Wilk, 2006). Highly time-constrained lifestyles in Malaysian have led to the food industry growth with many people having limited dining time. This has led to many eastern fast food companies from Dubai, China and Japan considering venturing into the industry. Many firms are entering the market because Malaysian has managed recovered from the meltdown of global financial market and its economy is performing well. The government policies are very good for the investors. Malaysia has also cultivated good relationship with other eastern countries such as China and Japan creating more trade between the two countries. This creates a threat for new entrants to the existing companies (Jargon, 2012). New entrants in the Malaysian Market have eaten away the share of some companies market share, for example, the market share of McDonalds was 20% in the year 2011 while in the year 2013 it reduced to 18%. On top of the first food companies that are many local hotels and food companies which act as substitutes to fast food. The demand for a fast food is increasing at 3.9% annually making the customers bargain to be very low (Jargon, 2012). The suppliers are facing high demand for their products increasing their bargain, which is a disadvantage to the fast food companies. In overall, the Malaysian food industry is very

PESTLE Analysis Essay Example | Topics and Well Written Essays - 1250 words

PESTLE Analysis - Essay Example analysis it is the hope of this particular author that the reader will gain a more informed and valuable understanding in terms of the way in which this particular industry operates and what its determinant factors are. In terms of the political influences and dynamics of the US automotive industry, it must be understood that a significant shift has occurred over the past several years. Beginning with the 2007/2008 economic downturn, the United States government made it clear and apparent that it was willing to step in and offer to be a lender of last resort for the struggling domestic auto manufacturers. This was, at least at that time, an unprecedented move that further cemented the relationship that the political system had to the industrial base of United States auto manufacturing (Townes, 2011). Another noted political involvement that the government has with the automotive industry is in terms of the way in which very large domestic orders are fulfilled by the three major US automotive manufacturers; Dodge, Ford, and General Motors (Hoke, 2011). As the United States government purchases only domestic made automobiles to fulfill its fleet inventory needs and to provide equipment for US personnel stationed overseas in embassies and other foreign environments, the interrelationship and involvement that the political and governmental process has to the automotive manufacturing sector is profound and connected at various points (Roberts, 2014). As indicated previously, the past six years have been an extraordinarily difficult period of time for domestic auto manufacturers. This is as a result of the fact that that their overall demand has dropped to record lows and the ability of consumers to afford and purchase new products has dropped commensurately. However, the past year has indicated a situation in which increasing demand has once again been exhibited and there is a steady but determinant increase in consumer interest for new products, new technologies,