ECO600- Economics And Finance For Business

Running head: COMPETITIVENESS IN THE FAST FOOD INDUSTRY;A CASE STUDY
OF McDONALD AND HUNGRY JACK, SYDNEY
Competitiveness in the Fast Food Industry;A Case Study Of Mcdonald and Hungry Jack,
Sydney
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COMPETITIVENESS IN RESTAURENT INDUSTRY;A CASE STUDY OF
McDONALD AND HUNGRY JACK, SYDNEY
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1.Abstract
The report intends to anlyze marketimg strategy to two leading fast food shops in
Australia. Two fast food stores chosen for the analysis are Mc Donald and Hungry Jack. The
market sructure and degree of competitiveness of fast food industry has been first analyzed
using past literature and secondary data. Every company has its own growth and development
plan. The growth strategies of Mc Donald and Hungry Jack are analyzed with the help of
secondary data and primary research conducted by visiting stores in Sydney. Finally strategic
analysis has been done to evaluate pricing and non-procing strategies of the two companies
using primary research.

COMPETITIVENESS IN RESTAURENT INDUSTRY;A CASE STUDY OF
McDONALD AND HUNGRY JACK, SYDNEY
2
Table of Contents
2.Introduction.............................................................................................................................3
3. Industry Analysis...................................................................................................................4
3.1 Market Structure...............................................................................................................4
3.2 Growth Strategies.............................................................................................................7
3.3 Pricing Strategies.............................................................................................................9
4. Conclusion............................................................................................................................14
References................................................................................................................................16

COMPETITIVENESS IN RESTAURENT INDUSTRY;A CASE STUDY OF
McDONALD AND HUNGRY JACK, SYDNEY
3
2.Introduction
The report aims to analyze competitiveness of fast food industry in Australia. A
comparative analysis has been conducted between the two leading fast food centers of
Australia – McDonald and Hungry Jack. In the fast food industry of Australia, Mc Donald
first stepped in 1971. The first outlet of the company was located at Yagoona, a suburb
situated near Sydney. Now, the company has more than 900 outlets including both wholly
owned and franchises having more than 90,000 employees (mcdonalds.com.au, 2018). Mc
Donald enjoys a leading position in the market capturing largest share in the industry. The
retail outlets of Mc Donald in Australia follows the format of global standardized restaurant.
Mc Donald however faces a larger competitive threat from Hungry Jack especially in
the hamburger segment. Hungry Jack one franchise of Burger King Corporation. Like Mc
Donald Hungry Jack started its operation in Australia since 1971 having its first outlet in
Perth. Within ten years of operation, the number of stores in Australia increased to 26. In
1990, Hungry Jack got the permission to operate independently in the food industry.
Currently Hungry Jack has nearly 390 stores in Australia (hungryjacks.com.au, 2018). Mc
Donald holds the leading position in the industry while Hungry Jack is considered as the most
featured follower or runner up. Hungry Jack mostly follows the strategy of Mc Donald and
tries its best to modify its marketing strategy in line with the most dominating player in the
industry.
The research report includes both primary and secondary researches for drawing
conclusion. The primary research is based on interviewing managers and employers of local
outlets of McDonald and Hungry Jack in Sydney. The growth strategies and pricing and non-
pricing strategies are of the two companies are mostly based on primary research. The