How does McDonalds Corporation develop or analize this factors? (factors that influence the threat of substitute...
How does McDonalds Corporation develop or analize this factors? (factors that influence the threat of substitute products):
FACTOR 1
Proximity of the substitute product
EXAMPLE
The closer the substitute is, the easier it will be to change to it.
FACTOR 2
performance-price ratio of the substitute product
EXAMPLE
A substitute product that offers slightly lower performance at a much lower price is a more significant threat than one that offers slightly lower performance and a low price reduction
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