The problem McDonald's is facing now is developing new strategies in order to sustain a competitive advantage in a market that is quickly evolving and maturing, with new players gaining market share, and growth in healthier eating trends. The fast food sales are relatively flat, but more businesses are gaining market share, so in order for McDonald's to counter this, they must stay innovative and further diversify their business to sustain their competitive advantage. They are facing the problem of having the "cheap and greasy" image, which is now being countered by businesses such as Subway. The evolution of fast food is causing McDonald's to rethink their overall strategy, introducing new products, and reshaping their image.
Situational Analysis and alternatives
The "cheap and greasy" image that McDonald's has had forever is now plaguing them. The bright colors seem to emphasize this cheap image, with the red and yellow combination. Maybe a branding and packaging alteration would help to slightly increase the gourmet appeal of the restaurant. There have been several companies that have done this in the past, such as Dairy Queen with the "Grill and Chill" logos and Taco Bell with the color changes from darker browns and yellows to brighter purples and blues. There is an apparent need to offer healthier foods, which McDonald's has tried to satisfy with their gourmet salads and wraps, but there is a need to introduce more non-burger products. Some ideas are boneless hot wings or maybe a few deli items such as a deli chicken sandwich. As trends move away from burgers to healthier alternatives, it seems almost necessary to add such items to the menu, and it seems to be fairly feasible with Runza and Wendy's doing it already. With the introduction of the McCafe, maybe more Panera Bread-type items would be a good idea, such as bagels and other sandwiches with deli meats.
To begin, I believe McDonald's should...
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