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Strategy of McDonalds - Essay Example

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objective. The location of the fast food establishment must be conveniently situated.. This

means it is either on the way or not very far from where they are currently juxtaposed. It

must always be delectable and filling. And it must always be reasonably priced.

The first example works against brand loyalty, because it is often said and

reasonably observed, that McDonalds puts a lot of effort and money into selecting its

locations, while Burger King merely waits until McDonalds locates and then they will

erect a store adjacent or near by. Moreover, in some cities fast food restaurants are

discouraged from locating in certain sections of the central business district.

Consequently you find clusters of fast food establishments adjacent to each other. Such

clusters may be found near hospitals, colleges, or sports complexes. With so many choices

and given the high competitive nature of the industry participants (featuring price

reductions, and two for the price of one), the potential customer has no other choice but

to make the common sense decision. More often than not, he will buy where the deal is.

The fast food market place is very competitive and with the entrance of additional

players neither market share or brand loyalty is assured any one franchise. This reality

pushes the corporation to cater to other novel or lifestyle needs which the prospective

customer might have. Of course, when a company comes up with a new product or
3



service, they have no sure fire guarantees that their customer base will accept...
The sandwich market is a viable option for the company at this juncture. It will surely change their image. It is a feasible option given all the negative press it receives about the quality of its menu. Remember, the outlets in India are profitable, albeit close to 90 per cent of the customer base does not consume beef or pork. ...Show more
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Summary

The company has dedicated almost fifty years on purchasing real estate and constructing new buildings. Expansion for a business is not necessarily a bad thing. However, it appears that the free thinkers are all in the field. They need to be harvested by the planners back at headquarters.
Author : reingerelouise
Strategy of McDonalds
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