Mcdonalds Case Analysis

1470 WordsOct 4, 20086 Pages
CASE ANALYSIS McDonald’s, Inc. COMPANY NAME: McDonald’s, Inc. INDUSTRY: Food Service COMPANY WEBSITE: www.mcdonalds.com COMPANY BACKGROUND: As a company, McDonald’s was first introduced in Des Plaines, Illinois in 1955. This was the very first McDonald’s restaurant, which all started in San Bernardino, California in 1954 when Ray Kroc approached the McDonald brothers with a business proposition to start a new company. In 1965 McDonald’s went public and was later, in 1985 added to the Dow Jones Industrial Average. (www.mcdonalds.com) The company has gone through quite a few changes with its changing CEO’s over the years, but the company seems to be on track with CEO Jim Skinner, named in 2004. Skinner was named the new CEO just…show more content…
BARGAINING POWER OF BUYERS: Consumers have more power over buying McDonald’s products because they can demand what type of products they want to see from them. Today, consumers are demanding healthier food and beverage choices from fast-food restaurants such as McDonald’s. After the documentary film “Supersize Me” by Morgan Spurlock came out in 2004, McDonald’s had to reclaim its name by showing America that their company cares about the health of their customers and cut out their “supersize” program. SUBSTITUTE PRODUCTS/SERVICES: In the fast-food industry, including McDonald’s, the threat of substitutes is greater now more than ever with the convenience food industry growing. More convenience food stores are offering similar products as the fast-food restaurants. The convenience store / gas station, Quik Trip, sells many food items such as hot dogs, egg rolls, pizza stuffed breadsticks, and countless beverage choices. (Siehoyono 2005) COMPETITIVE RIVALRY: According to Siehoyono (2005), “fast casual” food chains such as Subway are tougher competition to the fast-food chains in both the U.S. and international industries. Some franchisers were also complaining that McDonald’s was granting too many franchisees too close to each other and actually stealing business away from each other. STRATEGY USED: McDonald’s has tried both cost leadership and differentiation as

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