Mcdonald's and Hotels

1190 Words Apr 7th, 2006 5 Pages
McDonald's & Hotels

Written Case Analysis

By

Sean Bibbey

SWOT Analysis

External Environment

The external environment of the hotel industry in is very competitive and already well established. Trends in the market include promotional campaigns to customers using the "more bang for your buck," method. There are several different segments of the hotel industry including: luxury, upscale, mid-market with food and beverage, mid-market without food and beverage, economy, and budget. Each different segment offers certain amenities to appeal to consumers depending on what they are looking for in an over night stay away from home. As McDonald's looks at entering the hotel industry they have looked at several important issues dealing with
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Finally, McDonald's could create a totally brand name driven hotel enterprise by using the same type of direction Disney did when they created their own cruise line. Strategy Recommendations

General Recommendations

McDonald's should use their brand name to create a McDonald's experience in the hotel industry just like Disney did with cruises. They should also incorporate their food service experience with their hotels and create new menus for them just like they do when they enter a new country.

Specific Recommendations

McDonald's should enter the mid-market with food and beverage segment. In this segment they can take advantage of what they already know in the food service industry while avoiding the high cost and inexperience of luxury accommodations. These hotels should be directed at children and families. They could incorporate the McDonald's Play Place and other fun activity rooms like arcades or maybe something more adult like a game room with pool tables and electronic darts. Using a more family oriented direction will also allow them to avoid the high cost of liquor licenses and trying to compete with something that is already being done.

Rationale behind Recommendations

If McDonald's wants to take part in the hotel industry using the strength of their brand name it is important that they differentiate themselves from all the other hotel chains. If they provide accommodations that do not differ from what already exists they

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