McDonald's Expansion Strategy and Business Model Analysis
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This document presents an in-depth analysis of McDonald's expansion strategy, business model, offer, and communication strategy, as well as the market analysis of the fast food sector. The company's vision, mission, and corporate culture are also discussed, highlighting its commitment to customers and quality products.
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[...] Advertisements targeting children are still widely criticized, given the increase in obesity among this population. It is now possible for children to play with applications that promote the brand, or use its logo or symbols. Current trends among millennials, to eat healthier, more balanced and more responsibly, require the brand to review its strategy. Bibliography Sébastien Comparet The McDonald's system in France: The foundations of a corporate culture. Editions L'Harmattan, 2008 Joanne Mattern Ray Kroc: McDonald's Restaurants Builder: McDonald's Restaurants Builder ABDO. 2015 Sara Gilbert. The Story of McDonald's. Creative Education.2008 Ray Kroc. [...]
[...] In ten years of time, the sign counted more than 700 restaurants in the United States. In million hamburgers were sold. McDonald's, a small American restaurant, has become a financial enterprise thanks to a strategy linked to real estate and commercial royalties, which is its vector of growth. The McDonald's company will soon no longer make its burgers directly. McDonald's is now the world's leading fast-food chain, with more than 37,000 restaurants of which are outside the United States. Development has mainly taken place through franchising. [...]
[...] - What are its values? - What is its purpose? - What are its strategic objectives? - What is the strategic orientation: penetration, creation of new products, markets, diversification? - What is its turnover? - What is the genetic type of the structure? - What is the level of differentiation of its products? - What are its strengths and weaknesses? - What are its opportunities and threats? - How can one explain McDonald's global dominance? - What are its innovations? [...]
[...] In this case, the availability of many substitutes adds to the bargaining power of customers. McDonald's has a cost advantage and seems to be trying to compete on differentiation. A key factor of success in this industry rivalry is the location of fast-foods. McDonald's suppliers are not vertically integrated. This means that they do not control the distribution network that transports their products to the restaurants. A vertical integration as weak as this should weaken the bargaining power of the group with the suppliers. [...]
[...] On May the McDonald's company created a logo for the brand with a double-arched symbol. Today, this celebrated symbol continues to be used by the group. In contrast, the background color of the symbol is no longer red in all countries, but green since McDonald's Corporation continues its rapid ascent years after its takeover of the McDonald brothers. Ray Kroc's business is expanding and entering the New York stock market. The group had then 700 restaurants. But Ray Kroc did not come alone, he convinced franchisees and suppliers to become entrepreneurs like him and create a partnership with McDonald's. [...]
