Question

• If McDonald’s wants to introduce a new, healthy salad on its menu in Canada, how could the 6 external forces potentially influence McDonalds’ efforts?
• Does Canada have a competitive advantage?

Answer 1

The forces are as follows

1. Threat of new entrants in the same business .

This will increase competition, which will lower profits and sales volume

2. Threat of substitutes to salad

A new dish which consumers may substitute to salad will lower demand. This reduces profit margins across the industry.

3. Power of complements

Complementary goods , such as let's say almond milk which is often very popular among salad consumers, may rise in price. This may lead to many consumers not going to McDonald's in the first place

4.power of Buyers

Any shift of attitude or change in income may have an advserse effect on the salad industry

5 Power of suppliers

Suppliers may choose to sell the product at a higher price .

Competitive rivalry

A competitive rivalry is the toughtes to break thruiugy.