Market Competition Analysis for McDonald's and Hungry Jack's in Sydney City

Running head: MARKET COMPETITION 1
Market competition
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Author Note

MARKET COMPETITION 2
Abstract
The purpose of this paper was to carry out an analysis of the industrial competition for two
business. For this paper, the chosen businesses was McDonald's and Hungry Jack's all from
Sydney City. The paper illustrated the structure of the two businesses by briefly explaining how
they perform their activities and their founders. Further, the paper illustrated the market structure
of the two businesses by indicating their positions in the market. The paper also illustrated the
new competitors in the fast food market. In this case, the new competitors included; Grill'd, Red
Rooster, Noodle box and many others. Also, the paper indicated various ways that can be used
by the businesses to grow or expand. Therefore, the businesses were recommended to use
horizontal growth strategy as it gives chance for the dominance of the local market. Further, the
paper illustrated various pricing strategies that are used by both businesses. In turn case, it was
noted that Mcdonald's used price reduction strategy to gain its superior in the market.

MARKET COMPETITION 3
Introduction
The purpose of this report is to make an analysis of industrial competition for two
businesses. In this case, the selected businesses are based in Sydney city and they include;
McDonald and Hungry Jacks. Therefore, the report will focus on analyzing the operation of the
two businesses in terms of their competition. In this case, McDonald’s is a fast food company
that was founded way back in 1940. The business was started by Maurice McDonald and
Richard as a "hamburger stand" but later it became a franchise. The company is considered
among the largest restaurants across the world. On a daily basis, the company can serve at least
sixty-nine customers in over one hundred countries in various outlets. Also, McDonald’s
provides soft drinks, breakfast, chicken products, desserts, milkshakes, and many others. The
company's revenue was obtained from royalties, rent and fees from different franchise. To note,
the company is the 2nd largest private sector with many employees across the world estimated at
nineteen million. In Sydney City, McDonald's has very many outlets for example, "McDonald's
Martin Place NSW".
On the other hand, Hungry jack’s is a fast food company owned by Jeck Cowin. The
company is a franchise of "Burger King Corporation". The company owns various Hungry
jack's/Burger King restaurants across Australia. The company is obligated to license all the new
operators in the country by opening its new stores. Across Australia, the company is located in
390 areas. Among all the Burger King franchise in the world, Hungry jack is the 2nd largest
(Connelly , 2016).
The investigation about the two businesses was carried out by observation, interviewing
and reviewing the various literature about the business. This report covers various sections aimed
at explaining more about the business competition of the two companies. The second section of

MARKET COMPETITION 4
the report illustrates the companies’ overview regarding their market competition. In addition,
the paper also examines the growth strategies of the two businesses. Also, the report also
illustrates the analysis of non-pricing and pricing strategies used by the two companies to boost
their sales by capturing their market shares. In summary, the paper concludes by reviewing and
discussing the results that were obtained (Bergen,2014 .)
Market structure
In Sydney City, the growth of fast food restaurants is at a higher speed. Within the range
of 5 years, the restaurants in Sydney have been in the position to expand by at least 30%as
compared to the 5%for the past years. The trend in the market competition for restaurants in
Sydney city is believed to be as a result of younger consumers. As compared to the U.S market,
McDonald,s is not as strong as compared to its market in Australia (Sydney City). This high
competition in the market of fast food restaurants in Sydney City is considered to be as a result
of company's finding ways of serving or gaining popularity in the market by struggling to show
up their products. An increase in the competition for restaurants in Sydney is also considered to
be because of the provision of healthy and fresh meal unlike in the past days. In Sydney City, the
competitors for fast food are McDonald' KFC, Grill'd, Red Rooster, Outback and many others. In
this case, the new entrant in the fast food restaurants is, Grill'd, Thirsty bird, Lord of the fries,
Mr. Crackles and many others (Danielle, 2014).
Barriers faced by new fast food restaurants in Sydney city
The new entrants in the fast food restaurants in Sydney City are facing various barriers
that are hindering them from competing with the original restaurants. In addition, these barriers
are hindering the business from expanding. The barriers faced by the new entrants include the
following; first, location; most of the new entrants are not located in good places. To note, for