McDonalds is A Competitive Fast Food Firm Essay -- Fast Food Industry

A Competitive Fast Food satisfying Firms within the fast food industry f in all under the commercialise structure of competition. Market structure is a classification for the key traits of a market. The characteristics of a market that is competitive would include a large occur of buyers and sellers, easy portal to and exit from the market, homogeneous products, and the firm is a bell taker. Take McDonalds fast food eating house for example. In 1954, Ray Kroc became the eldest franchisee appointed by Mac and Dic McDonald in San Bernadino, California. He opened his eldest restaurant in De Plaines, Illinois (near Chicago), and the McDonalds Corporation was created. By 1959, the 100th McDonalds had opened in Chicago. In the early years of the 1960s, Ray Kroc had bought all rights to the McDonalds concept from the McDonalds brothers for $2.7 million. In 1963, the dth restaurant had opened. By the end of the decade, McDonalds was listed on the N ew York stock exchange, had opened restaurants in invariablyy state of the union and also outside the USA. By 1972, assets exceeded $500 million and sales surpassed $1 billion, a new McDonalds restaurant was opening nearly every day. In 1984, Ray Kroc died, but his gild was then function 17 million customers a day, equivalent to serving lunch to the entire population of Australia and New Zealand. If McDonalds lined up all the hamburgers sold since 1955, they would have circled the equator 103.75 times and reach to the moon and rump 5 times. Today, McDonalds remains one of the most competitive franchises ever created because they still have a large number of buyers and sellers, easy entry to and exi... ...dustry is the ease of entry into the market. Start-up franchises within this market structure can develop operating with relatively low initial investments (compared to other industries). This is not the movement where monopoly companies, suc h as Microsoft is concerned. There are numerous barriers to entry into a Monopolistic market structure, capital being one of the most grownup barriers. If a new franchise offered the consumer a tone product at a reduced price, then the chance of success are greatly increased. McDonalds established a name for themselves by offering quality food and fast, friendly service. This is a very important concept in the fast food industry. Once they established themselves to the consumers and became more visible, they created more demand, which get going to a greater revenue for them.