Competition Analysis of McDonald's and Hungry Jacks in Australian Fast Food Market

Running head: MANAGEMENT 1
Economics and Finance for Business
Student Name
Institution

MANAGEMENT 2
Abstract
In this paper, the completion between McDonald's and Hungry Jacks were analyses as the
basis of market or industry analysis. The report utilizes data that were collected through primary
data collection method of observation and the secondary data collected through various available
materials. The market analysis of the competition between McDonald's and Hungry Jacks reveals
a number of things. The research shows the type of market structure within the fast food industry
to be oligopolistic market competition. The market has a much different business organization
yet there are few firms that have the largest market share. Companies within the fast food market
have diverse growth strategies that ensure they remain performing in the competitive market.
McDonald's and Hungry Jacks has both have outlet increase growth strategies that need changes
to ensure competitive advantage. The paper highlights various pricing strategies that are used by
two competing companies in the market. McDonald's has 2-dollar price offers and quality based
non-pricing strategies. Hungry Jacks, on the other hand, uses value-based pricing and loyalty
program non-pricing strategies. The paper concludes by identifying product differentiation as the
competitive strategy that enables company such as McDonald's to have a competitive advantage
over Hungry Jacks.

MANAGEMENT 3
Table of Contents
Introduction.................................................................................................................................................3
1. Market structure and competitive strategies.........................................................................................3
1.1 Notable competitors...........................................................................................................................4
1.2 Barriers to market entry.....................................................................................................................4
1.3 Market share......................................................................................................................................5
1.4 Competitive strategies.......................................................................................................................6
I.5 Business advice component................................................................................................................6
2. Growth strategies.................................................................................................................................7
Business advice component.....................................................................................................................7
3. Pricing and non-pricing strategies........................................................................................................8
Business advise component...................................................................................................................10
Conclusion.................................................................................................................................................11
Reference...................................................................................................................................................12

MANAGEMENT 4
Introduction
Business competition is one of the key aspects of business operations that increases
efficiencies and performance in the market. Business rivalry can sometimes intensify that make
many businesses has low performance while others take the chance to increase their dominance
in the market. The food industry of Australia has many different companies that compete within
each other to get customers hence more sale and profit. Fast food particularly has many
companies but the main focus of this research is to study the competition between McDonald's
and Hungry Jacks. The data was collected using primary data collection and secondary data
collection methods to help understand the two companies. The report covers various sections that
include market structure and competitive strategies form the first section of the report. The
second section focus on the growth strategies of the two companies under investigation. The last
section considers pricing and non-pricing strategies that McDonald's and Hungry Jacks uses to
compete in the market. The paper concludes by discussing the importance of competition in the
business environment and the expected conduct of business in the market where there is high
competition. The following paper investigates the competition between McDonald's and Hungry
Jacks by the use of primary and secondary data collected.
1. Market structure and competitive strategies
The Australian fast food market is an oligopolistic market with only a few known brands
dominating the market. Some of the dominant brands are McDonald's, Hungry Jacks, Pizza,
Subway, Hut, and KFC. The competition is strong with most of the dominant companies having
a larger market share as compared to those small companies within the same market. Some other
companies that also form fast food companies are the Wendy’s and Oporto. The market is