The growth of McDonald's company in the European market - Case Study Example

Business Expansion: McDonald’s Growth in the European Market al Affiliation) Environmental Factors Leading to Re-evaluation McDonald’s expansion in the European market has been spoilt by various environmental factors. The Political, Economic, Social, Technological, Legal, and Environmental (PESTLE) spheres in the European market are way different from those in the American market. As such, through the Strengths, Weaknesses, Opportunities, and Technological (SWOT) analyses, McDonald’s has focused on re-evaluation to tackle the PESTLE aspects that could be a hindrance if not properly addressed.

Competition has been extensive with the company finding it difficult to attain competitive advantage. The main competitors include Tex-Mex, Nando’s, and Southern Fried Spicy Chicken Restaurant. In addition, research indicates that the demand is drifting away from the plain hamburgers offered at McDonald’s. As such, lack of product diversity has been a barrier to successful expansion into the European market (Han, 2009).Factors to Focus OnProduct Related McDonald’s company has to establish products that go beyond its identity (Toivanen, & Waterson, 2011).

As such, it should go beyond the conventional hamburger place and offer a variety of products. In addition, the foods offered ought to be unique from those from the competitors. It is worth noting that McDonald’s Company is focusing on hamburgers and fries with low fat content. With the increasing lifestyle concerns related to nutrition, the European market is in dire need of products that are healthy. McDonald’s should focus on producing products that meet the nutritional demands of consumers, taking note of the increased demand to healthy eating habits.

Consumer Related McDonald’s ought to recognize that consumers are the source of revenue. To maximize on its expansion in the European market, McDonald’s should embrace customer service as a complementary to offering foods. Customer satisfaction forms the foundation to customer loyalty. As such, the company should place customer service as a primary product. In addition, the company may practice target marketing as a promotional mechanism. Advertising its products to the right market would ensure that the company adopts an efficient marketing approach.

It is notable that the visual impression is significant to consumer preference. Therefore, the company should focus on aspects such as packaging that go beyond marketing to create an appeal for its products.Recommendations McDonald’s business strategy involves product differentiation and diversification to have an edge over its competitors. As such, the company ought to focus on new products such as McCafé, its coffee brand, to diversify its menu options for the consumers. In addition, the company should focus on offering non-coffee beverages such as smoothies and milkshakes.

McDonald’s should focus on after-sale services, such as deliveries to customers in the European market. Diverse menu options and after-sale services place McDonald’s in a suitable position to have a competitive advantage over its competitors; hence, increased growth (Vrontis, & Pavlou, 2008). With the current technological development, it is impossible to ignore the benefits of the social media on global expansion. McDonald’s should adopt the social media as a viable marketing platform.

The company’s growth in the European market is partly attributable to social media. It is through social media that customers provide feedback, give referrals, and talk about the products. The company sources significant information from the social media; hence, a contributing factor to its expansion in emerging markets and the European market in particular. ReferencesHan, J. (2009). The Business Strategy of Mcdonald’s. IJBM, 3(11). doi:10.5539/ijbm.v3n11p72Toivanen, O., & Waterson, M. (2011).

Retail chain expansion. London: Centre for Economic Policy Research.Vrontis, D., & Pavlou, P. (2008). The external environment and its effect on strategic marketing planning: a case study for McDonalds. JIBED, 3(3/4), 289. doi:10.1504/jibed.2008.019163