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International Business Strategy for McDonald's in Czech Republic

Evaluate and apply Porter's Five Forces model to analyze the competitive forces in the hotel industry and devise strategies to improve market position.

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Added on  2022-11-09

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This report showcases the analysis of Czech Republic’s hospitality industry and suggests the use of hybrid strategy as the core strategy for McDonald's. It includes Porter’s five force analysis, Porter’s generic strategies, Bowman’s strategy clock, hotel facilities, and references.

International Business Strategy for McDonald's in Czech Republic

Evaluate and apply Porter's Five Forces model to analyze the competitive forces in the hotel industry and devise strategies to improve market position.

   Added on 2022-11-09

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International Business Strategy
International Business Strategy for McDonald's in Czech Republic_1
1
Contents
INTRODUCTION .................................................................................................................. 2
Task 1 ................................................................................................................................... 2
Porter’s five force analysis ................................................................................................. 2
Task 2 ................................................................................................................................... 3
Porter’s generic strategies ................................................................................................. 3
Bowman’s strategy clock ................................................................................................... 4
Hotel facilities .................................................................................................................... 5
Conclusion ............................................................................................................................ 5
References ........................................................................................................................... 7
International Business Strategy for McDonald's in Czech Republic_2
2
INTRODUCTION
There are many restaurants that are moving in other parts of the world as a part of
expansion. This is done by them to ensure that they have new revenue sources that can
give them competitive advantage over the rivals (Smrčka, Arltová and Schönfeld, 2011).
Hotels as big as Golden Arch Hotel Division when aiming to enter in Czech Republic, they
need to ensure that they know the hospitality industry’s dynamics. This report will showcase
the analysis of Czech Republic’s hospitality industry.
Task 1
Porter’s five force analysis
Bargaining power of supplier: There are large numbers of local and international
suppliers available within the country. This is reducing the bargaining power of
suppliers Hotels have large numbers of options available with them.
Bargaining power of consumers: With technological options available with the
consumers, it is easier for the consumers to compare all the services provided by
different hotels and due to this the bargaining power of consumers is increasing.
Competition: There are many small and big hotels operational within Czech Republic
and this has made the competition to highest of levels. With new investors coming in
the Hospitality industry it is highly possible that competition within the industry will be
further increasing (Heryán and Kajurová, 2016).
Threat of new entrants: Right now the economic condition in European region is not
so good. In this environment, it is less likely that new investors will add and come to
the hospitality industry. This is also because of the fact that in the slowdown of the
economy, the hospitality industry gets affected more severely.
Threat of substitution: With new innovations in the business models it is highly likely
that threat of substitution remains on the moderate side. This is because innovations
in the business model will promote substitution but on the other hand people still love
to go in the hotels hence the threat of substitution will remain on the lower side.
In order to understand the company’s position in this industry environment, it is critical to
understand the type of strategy that will be used. The ansoff matrix in this regards suggests
that company choose market penetration (Pollard and Jemicz, 2010). They can use existing
product and services so as enter into different markets. In terms market development they
have chosen are developing new products that are different from most of their competitors
so that they can helps them in the market development.
International Business Strategy for McDonald's in Czech Republic_3

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