1) How does Mcdonalds make money?
- What affects customers' willingness to pay?
- Think about what benefits and utility consumers get from buying products from this industry. Where else could they go to fulfill a similar need or to get a similar experience? (e.g. mobile handset as a substitute for purchasing a laptop)
- How likely are customers in your industry to actually seek these other options?
- How likely are customers to purchase from other industries based on price? (e.g. if mobile phones become more powerful, people would rather have a mobile phone than a laptop)
- What affects firm costs?
- Does the firm require lots of employees, lots of machinery, lots of advertising, etc.?
- How does the firm measure its own performance?
- Ex: sales per employee, return on assets, inventory turnover, web pages viewed
- Are these factors the same or different from other firms?