Another strength of McDonald Corp. is their history of strong financial performance. McDonalds is known for shareholder-friendly efforts intended to provide investor returns. The fast food industry is a very competitive space and requires constant innovation and new product development to maintain a competitive advantage. McDonalds has shown their ability to forecast and put into action what their customer wants and needs are. A great example is the McCafé line which is exceeding performance expectations.
The business successfully targets very young children through offering playgrounds, toys with its meals and advertisements. Weaknesses 1. Negative publicity. McDonald’s is heavily criticized for offering unhealthy food to its customer, stimulating obesity and strong marketing focus on very young children. 2.
The diagram above shown the CPM of McDonald’s and its competitor, KFC and Burger King; indicates McDonald’s is in a strong strategic position than its competitor. Some of the reasons McDonald’s is successful and has high market is due to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large sum of money in advertising and very well known toward it charity program through Ronald McDonald’s House. Nevertheless, there are areas in which the organization can improve. One of those areas is their public image.
Strengths: McDonald’s is the largest fast food restaurant chain, its sales are 8% higher than any other fast food restaurants. It serves around 68 million customers per day in over 119 countries across 35 000 stores. For this reason it has been given the name of the largest fast food market share in the world, which means the brand is well known this gives the company edge over other similar company’s like Burger King. The brand is valued at 40 million dollars which is huge compared to Burger King which are only valued at 28 million dollars. The brand has become so popular because McDonald’s clever use of Ronald McDonald Clown to promote their products which became such a hit with young children and young adults.
As KFC are in to fast food business they have to see the local responsiveness as taste in USA and china is totally different. There is cultural and social difference as well, in USA people prefer takeout, whereas in china people love going to restaurants with family having their meal. This effect on the infrastructure of the KFC restaurant as in china they need more space and have to spend more on ambiance. As well as cost pressure are also high as already competitors like; McDonalds, subway, are there. As costs and local responsiveness pressure both are high they adopted transnational strategy to enter in
The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. McDonald's India opened its first restaurant in 1996. Locally owned by Hard castle Restaurants Pvt Ltd (HPRL) and Connaught Plaza Restaurants Pvt Ltd (CPRL), there are over 310 McDonald's restaurants across the country, today. For McDonald’s every customer’s smile and happiness is of utmost importance. Its mission is to be the best company for all of its employees and deliver services with superior operational system for all customers.
Fast food companies have demolished competition throughout the last 30 years in the restaurant industry. The practices used to eliminate competition such as using unhealthy food to make a profit have been reported unethical by Americans, but it tends to be desired by the American society. According to the American Franchise Corporation, certified by TrustArc, fast food companies generate $570 billion annually in the United States ("Fast Food Industry Analysis"). These statistics continue to rise as more and more fast food companies become ubiquitous. As a result, fast food companies get richer, while people contract life-altering health effects.
Marketing and Strategy McDonald’s adopts different marketing strategies for different marketing environment. In United States, McDonald’s emphasizes convenience and efficiency because the rhythm of life in America is fast. McDonald’s regards white-collar workers as main target customers. On the contrary, in China, McDonald’s makes emphasis on comfort and romantic. And its target customers are young people because young people in China occupy the main part of fast food consumption.
Brands. 3.2.5 Supplier power. (Weak) Since McDonald’s is a well-recognized company globally, many suppliers wish to work with it, so the supplier power is weak. McDonald’s is critical clients to various suppliers and McDonald’s purchasing constitutes a big part of the sale revenue and profit due to McDonald’s usually purchase in bulk. There is plentiful supply of raw materials and ingredients like flour and meat.
An assessment uses immediate entry modes of franchising, external factors, selection of the brand for the franchisee, in this case I have talked about many different brands from the Norwegian retail store to one of the biggest fast food chains McDonald’s and their ability of franchising. In recent years McDonalds has taken a lot of market in the fast food business. The result of this is that other fast food chains get a competitor. Huawei goes out to be number two in the world when it comes to the fast food market considering locations they have around the world. Due to their constant involved in the development of new fast food chains using franchising.