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Breakfast Fast Food Industry

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Industry Rivalry
The five forces that Michael Porter uses to evaluate an industry are industry rivalry, buyers, suppliers, threat of substitutes, and potential entrants. The first force, industry rivalry, is used to describe the overall conditions in an industry, including the number of competitors. For Subway, breaking through to the breakfast market will not be easy due to industry rivalry. However, Subway has done some research and has found that many fast food restaurants are lacking in the healthy food options in the morning. This has led them to create products that will target the customers that are looking for healthy morning meals. “Subway’s offer includes four Fresh Fit Egg White Muffin Melts, each with less than 180 calories, 4.5 grams of fat and 5 grams of fiber” (Francella). This is an example of a product that Subway has created to try and gain ground in the fast food breakfast industry, a $40.7 billion business in the United States. While Subway may be gaining ground with their healthier morning meals, they are still trailing to one of their biggest competitors, McDonalds. One of the biggest reasons why McDonalds has been able to dominate the industry is the use of their drive-through. “Subway doesn’t have drive-throughs, which has become a big part of America’s breakfast tradition” (Channick). A drive-through is convenient and offers expediency. In today’s society where American’s are labeled as lazy, having a drive through is a big help in boosting business.
Power of Buyers
The next force used to evaluate the fast food breakfast industry is the bargaining power of buyers. In today’s economy, people are not willing to spend a lot of money. Because of this frugal spending, people tend to take more time and look for the best deal before making a purchase. McDonald’s has noticed this trend and has since created a breakfast dollar

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