McDonald’s Winning Strategy

Successful companies stay competitive by keeping up with the changes of the market. One such company is McDonald’s. Refer to the article “McDonald’s Winning Strategy, At Home and Abroad”. Over the years and especially recently, we have seen several changes made by McDonald’s with regard to its business strategies – new product offerings and repositioning.

Observable strategies implemented by McDonald’s are no doubt the decisions made based on strategic analysis of customers and competitors. For this discussion, similar to the process of reverse engineering, you are to figure out the key pieces of information that could have resulted from that analysis and led to McDonald’s strategic decisions.

Based on the company’s current business strategies,

Discuss the customer segment(s) McDonald’s is targeting, defined by a variety of characteristics (e.g., demographics, benefits sought, price sensitivity, loyalty). Is a single segment or multiple segments being targeted?

What are the important motivations that lie behind purchase decisions of the segment(s) identified?  Is McDonald’s satisfying any unmet needs of the segment(s)? Explain.

Who do you think are the direct and indirect competitors that McDonald’s is trying to compete against?

What are the positions, strengths (assets and competencies), and weaknesses of the identified competitors?

Do you think McDonald’s successfully caters to the needs and wants of the targeted customer segments and properly responds to the strengths and weaknesses of its competitors? Explain.

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