He pres-ents various techniques for using the industry framework for analyzing industries and for deter-mining competitive moves of industry rivals rec-. The restaurant chain company implements strategies to meet these external factors and minimize their negative impacts.
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Considering the combination of market conditions this Porters Five Forces analysis of McDonalds establishes the following intensities of the five forces.
. Premium pricing occurs when prices are set higher than the rest of the market to create perceived value quality or luxury. Porter identifies three generic strategies overall cost leadership differentiation and focus by which firms in an industry may attempt to gain a competitive advantage over their rivals. This type of pricing strategy works especially well if your target audience includes.
If your company has a positive brand perception and a loyal customer base you can often charge a premium price for your high-quality branded products. Strong competitive rivalry or competition.
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