The economies of scale is fairly difficult to achieve in the industry in which McDonald s Corporation operates. This model can also be used for major geographic regions of a single country. Porter’s Diamond model is an economic model that is developed by Michael Porter that aims to highlight and explain on why particular industries or nations become quite competitive in a particular location and on the national and international levels.. Michael Porter is one of the highly renowned and famous authorities on the corporate strategy and economic competition. McDonald's Five Forces Analysis (PORTER'S MODEL. Related Papers. The company sells quality food and beverages at various points throughout the world in more than 100 countries. Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. The Five Forces Model Of Mcdonalds 786 Words | 4 Pages. I have chosen fast food chain of McDonald for my five forces Porter analysis. McDonald s Corporation Porter’s Five Forces Analysis. The model was first published in Michael Porter’s 1990 book The Competitive Advantage of Nations. McDonald’s works with a number of large suppliers such as Coca-Cola Company, Clorox Company, Dr. Pepper Snapple Group Inc. McCormick & Company Inc., International Paper Company, Sealed Air Corporation and others. Threat of New Entrants. McDonalds Five Forces Analysis . Porters diamond model . ... relevance to service based companies such as McDonalds. Bargaining power of McDonald’s suppliers is low. It is important to conduct Porter’s five forces model for McDonald’s to understand the changing industry dynamics and provide insights for future strategic planning. Download. Porter’s focus is on the domestic country rather than which foreign markets have been targeted. Porter’s Diamond Model is a diamond-shaped framework that explains why specific industries in a nation become internationally competitive while those in other nations do not. This section analyses McDonald s Corporation using each of the five forces of Porter’s model. The National Diamond Model This is an economical model of competitiveness study developed by Michael Porter in his book The Competitive Advantage of Nations, where he has published his concept of national competitiveness on why particular industries become competitive in particular locations and in the particular business. Figure 1 McDonalds Porter’s Five Forces Analysis. According to Michael Porter, growth’s stability is not a heritage but something we need to create. Porter’s Diamond of National Advantage is a model developed by Michael Porter and this model helps in understanding the comparative position of a nation in global competition. Competitive Rivalry Fast food products are globally accepted and it is the reason different multinationals and local companies all over the world are providing fast-food products. Clara Lee Sengco. Porter's diamond is a model used as part fo the strategic analysis stage of the strategic planning process. The four factors influencing the competitive advantage are: – Firm strategy, structure and rivalry – Demand conditions – Related and supporting industries – Factor conditions We will explain the international competitive position of McDonald’s Corporation using all those factors. McDonalds is a globally well known chain of fast food restaurants that is comprised of both company owned and franchised restaurants. Porter’s Diamond Model (see figure 1 below) suggests that the competitive advantage of a nation is affected by four determinants namely: “Firm’s strategy and rivalry”, “related and supporting industries”, “demand conditions” and “factor conditions” (Porter 1990, p. 71). 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