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External Market Fragmentation In The Fast Food Industry

710 Words3 Pages

In 2012 the fast food industry was experiencing a harsh economical climate, which resulted in market fragmentation and a downturn in profits. At this same time was when Don Thompson was appointed CEO of McDonalds and being the new leader of one of the world’s largest fast food chains he had to analyze the external market factors and make certain decisions to keep the company afloat. For example, I mentioned market fragmentation in the fast food industry above, and this was very relevant in 2012. McDonalds main competitors were making strategic moves to pull in more customers for example, adding different products to their menus and improving their restaurants, the biggest components of this was Burger King and Wendy’s. Furthermore, their were other similar chains making head way in the industry making the fast food industry very competitive with no one large leader. Another factor that might affect Thompson’s strategy was consumer preference in 2012. If an individual has looked at McDonald’s menu there are not that many healthy products that they offer. This often deterred consumers from buying their products due to the health issues with their foods. Another key factor that Thomson looked at was the pricing of his food. He wanted a restaurant where consumers could afford the products on the menu and if one thinks back to 2012 the unemployment rate was very high meaning that families did not have much disposable income for nice restaurants. So this made McDonalds very

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