McDonald competitive strategy and position in the fast food industry market - Essay Example

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This paper focuses on how the organization of each separate company influences the decision making and on the type of competitive strategy adopted. McDonald is faced by the challenge of operating in a saturated market. This makes it difficult to open up fresh outlets…
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McDonald competitive strategy and position in the fast food industry market
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Download file to see previous pages This essay explores that makes MacDonald stand out is that it has a strong brand name and is among the nine world popular brand names in the fast food commerce. The brand names has been popularized by consistent promotion strategies and promoting superior personal relations. One of the inimitable attributes of McDonald is that it offers uniform products in all its branches. This includes, chicken, soft drinks and hard drinks. Over the previous few eons, a range of new products has been introduced to provide customers with a wide range of products to choose from increasing the number of sales compared to in earlier years. However, notwithstanding the upsurge in the quantity of foodstuffs offered, McDonald has promoted uniformity of the standard of services offered in its various branches. Competition in this industry is exceptionally stiff. McDonald has tried to stay top in the market by using extremely expensive promotional strategy a move which has narrowed its revenue. However, the corporation has shifted its focus from promotion to exploring other ways of promoting its market share. It is trying to set itself separate by increasing the items in its menu and also coming up with innovations. Its competitors have also employed the same strategies. However, these companies compete differently. This is because they are structured differently and as such the choices made should suit the structure of each in individual company. This paper focuses on how the organization of each separate company influences the decision making and on the type of competitive strategy adopted. McDonald chief competitive factors McDonald is faced by the challenge of operating in a saturated market. This makes it difficult to open up fresh outlets. The market grow prospects are very low about 2% annually. It also has numerous competitors who offer competitive prices making increase of product prices not to be a viable option of increasing source of revenue. It has, however, tried to overcome this by adopting a diversifying approach instead of a value approach. The corporation has shown low innovativeness with its last new product being the chicken nugget introduced in the year 1983. However, it has compensated for this lack of innovativeness by introducing new salads. The following are the most important competitive factors of McDonald: Uniformity of standards and services in various locations Despite the fact that McDonald offers an array of products, it has guaranteed its customers consistency in the standards of services offered. The consistency is evident in all the outlets founded in the U.S.A and in the global markets (Cateora & Graham 2007, 68). The company is very selective in forming affiliated ventures and franchises: it only affiliates itself to companies that meet its standards. Furthermore, testing of new products is done within a limited promotion time. Establishment of branches addressing different market needs. In addition to its restaurants, McDonald has also launched other branches addressing various market segments. This includes the fresh Mex-grill and Chipotle Mexican Grill in America which offers tacos and gourmet burritos. In the UK, It has a coffee chain serving pastries and sandwiches called the Aroma Cafe. This has made it conceivable for the establishment to access a larger market compared to its rivals who are limited. Large size The corporation has a very strong global impact with its closest contenders being only half its size. It has shown a hint in both the indigenous and international markets. As such, it enjoys reduction of cost via economies of scale brought about by its large size. Its large size also the fact that it has branches in few nations ...Download file to see next pagesRead More
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