5 The industry structure can be defined by using Porter’s five-forces model.

Execute this model for the fast food industry. Draw your conclusions about the attractiveness of this industry, from McDonald’s point of view. You likely know more about the fast food industry than you realize. If you live in the United States – or pretty much anywhere else – it’s everywhere. Off of every exit on the highway and at every rest stop. In the food court at the mall and on the commercial strips on the outskirts of town. In cities and at airports.

What you may not have noticed, though, is the changing dynamics within the industry. The last several years have seen an absolute explosion of diversity in both restaurant concepts and menu choices. This evolution reflects an industry that has been responsive to changing consumer tastes as well as entrepreneurs finding niche opportunities to profit, an industry that needs to be responsive as consumers become more and more critical about what they eat.