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McDonald's, Subway and Burger King: Assessing Marketing, Operations and Competitive Actions - Essay Example

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This paper outlines the issues about the fast food business. The fast food industry is inundated with significant competition, creating new operational challenges in attempting to develop a workable business model designed to satisfy diverse customers. …
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McDonalds, Subway and Burger King: Assessing Marketing, Operations and Competitive Actions
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"McDonald's, Subway and Burger King: Assessing Marketing, Operations and Competitive Actions"

Download file to see previous pages Homogeneity, under this definition, is similarity related to tangible facility architectural style, employee uniforms, menu board design and in actual food products offered. Much of this stems from the business’ long-standing brand recognition and brand loyalty that McDonald’s and Burger King have managed to establish in their long history of operations. However, it is this homogeneity that drives very different competitive actions for order winning and for qualifying with customers, especially related to McDonald’s. McDonald’s is attempting to break away from this homogeneity by appealing to a new type of consumer, one that is more contemporary and socially-driven. Fitzsimmons & Fitzsimmons (2011) describe the importance of the servicescape, the tangible ambiance of a business that strongly contributes to the satisfaction of diverse customers. The servicescape is identified by the spatial layout and functionality of McDonald’s, the signs and symbols used to distinguish a brand identity, and the overall ambient conditions of the business. According to a spokesperson for McDonald’s, the business is investing considerable financial resources into re-imaging strategies that include coffee house charm and modernism in many of the structural components of the organisation (McDonald’s Annual Report, 2008). These changes, launched in 2009, have radically changed the servicescape of McDonald’s, separating its traditionalism and homogenous architecture to a facility that is more aesthetically-pleasing for a new breed of contemporary customers. “At McDonald’s, gone are the hard, plastic seating areas in unappetising colours; more attractive places to be”...
Pricing was described as being competitive strategies with McDonald’s and Burger King, however the value pricing described continues to add to the homogenous nature of these businesses that offer similar products. Thus, pricing is not a sustainable strategy related to operations management if they hope to achieve higher market share. This is why both businesses invest, though differently, heavily in advertising as they attempt to project very unique images to their customers. All three businesses have their own brand identity and continue to develop the servicescapes, advertising, production systems, and services provision needed to sustain these promises. Observation and research has indicated considerable demands on operations management at all three organisations that impact total business strategy differently at each restaurant. ...Download file to see next pagesRead More
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