Mcdonald's And The Informal Eating Out ( Ieo ) Segment ( Restaurant Industry )

1887 Words May 8th, 2016 8 Pages
McDonald’s is operating in the Informal Eating Out (IEO) segment (restaurant industry) and though it is the top brand in the world, year 2014 was difficult for the company.
McDonald’s undertakes expansion strategy in foreign markets (MCD Annual Report 2014 , 2015), however it is seen that opportunity is also in entering university and college campuses and provide catering service and serving thousands of students. There is a wide scope for the company and the target market is attractive with 7500 universities all over U.S. and generation Y. The fact is almost, 95% of the universities provides meal plan and approximately 40% of universities or colleges are outsourcing food services (FSD Staff, 2015). The Colleges and universities shows a steady growth (© 1999-2016 IBISWorld, 2016) (U.S. Department of Education, National Center for Education Statistics. (2015), 2012). This shows the need and the company can use encirclement strategy to reach out untapped market segments and gain maximum market share.
With the help of brand image and pricing strategy, McDonald’s can grab this opportunity and can take a step further to make a contribution to the society by also doing social activity like proving scholarships and internships to students, which can aid ethical issues which arise from the business relationship between universities and McDonald’s. McDonald’s has got several strengths, but lacks in experience which can be handled by partnership with existing player in the industry.…
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