Strategic Management Mcdonald's in China

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Introduction McDonald’s, the US-based food-chain is a well-known company around the world and is growing and growing. The first McDonald’s restaurant in Europe was in The Netherlands in 1971, nowadays almost 230 restaurants exist among the country. Almost 20 years later, in 1990 the first McDonald’s restaurant opened in Shenzhen, China. After the home base country the USA, China is the second biggest market for the food-chain with over 960 restaurants, this number is steadily expanding. The company’s vision is ‘to be the best and leading fast food providers around the world’. Through this vision their mission is; ‘to be the world’s best quick service restaurant experience. Being the best means providing outstanding quality, service,…show more content…
McDonald’s replied on this conclusion by expanding the product supply. The biggest competitor for McDonald’s is Yum Brand which is grouped with brands as KFC and the Pizza Hut. Main advantage of this chain is the fact that they mainly use chicken as their core product. This is traditionally more popular than beef among Chinese. Prices between KFC and McDonald’s are quite similar and are very competitive to each other, McDonald’s offers more chicken products than it does in their Dutch restaurants to meet Chinese demand. A great advantage McDonald’s has is the well-developed distribution system that allowed it to have access to places other than main city centers. The more McDonald’s is expanding in China, the more efficient it will be in managing its business. Differentiation strategy in use According to Porter’s concept of generic strategies we must define whether it is operating in a narrow or broad target market. McDonald’s in China is mainly focusing on the younger generation which is growing up with the influence of western brands. Its marketing program is mainly focused on the youth as they promote free Wi-Fi in all their restaurants and take price in consideration. On the other hand does the food-chain take into account the demand of older consumers as with its McCafe concept it mainly reaches older people. From this perspective we can conclude that McDonald’s strives to
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