Fast Food
1. Executive Summary
This report provides an analysis of the international marketing environment of fast- food industry in US and evaluates the international marketing activities of McDonald’s, which is considered a key player.
Firstly, the PEST framework is used to analyse external environmental factors influencing the industry. The Porter’s Five Forces framework is utilised to analyse the competitive rivalry within the industry, and its attractiveness for potential new entrants. Key players and their positioning was identified using a strategic-groups model, mapping brand value against global presence.
Based on the industry analysis, McDonald’s was identified as the market leader and an examination of their market entry modes was carried out. Their international marketing mix was evaluated to identify success factors, drawing focus upon international branding, international distribution, international communications and standardisation vs. adaptation of the service offering. An internal analysis identified the firm’s strengths and weaknesses whilst an external analysis considered the opportunities and threats posed to McDonald’s as market leader.
Finally, short and long term strategic and tactical recommendations were outlined in order to enhance McDonald’s competitive position within the global fast-food industry. These recommendations are both realistic and well supported, based upon the evaluation of their current strategy and activities.
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2. Introduction
The global fast-food industry is dynamic with a variety of competitors. This report identifies the current factors influencing the industry before specifically focusing on McDonald’s Corporation, who is considered as the current global leader. Based on this analysis, the report identifies several areas for improvement and makes strategic recommendations for McDonald’s to enhance its position.
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3. International Marketing Analysis 3.1. PEST Analysis and Environmental Impact Matrix (Macro Environment)
This report provides an analysis of the international marketing environment of fast- food industry in US and evaluates the international marketing activities of McDonald’s, which is considered a key player.
Firstly, the PEST framework is used to analyse external environmental factors influencing the industry. The Porter’s Five Forces framework is utilised to analyse the competitive rivalry within the industry, and its attractiveness for potential new entrants. Key players and their positioning was identified using a strategic-groups model, mapping brand value against global presence.
Based on the industry analysis, McDonald’s was identified as the market leader and an examination of their market entry modes was carried out. Their international marketing mix was evaluated to identify success factors, drawing focus upon international branding, international distribution, international communications and standardisation vs. adaptation of the service offering. An internal analysis identified the firm’s strengths and weaknesses whilst an external analysis considered the opportunities and threats posed to McDonald’s as market leader.
Finally, short and long term strategic and tactical recommendations were outlined in order to enhance McDonald’s competitive position within the global fast-food industry. These recommendations are both realistic and well supported, based upon the evaluation of their current strategy and activities.
3
2. Introduction
The global fast-food industry is dynamic with a variety of competitors. This report identifies the current factors influencing the industry before specifically focusing on McDonald’s Corporation, who is considered as the current global leader. Based on this analysis, the report identifies several areas for improvement and makes strategic recommendations for McDonald’s to enhance its position.
4
3. International Marketing Analysis 3.1. PEST Analysis and Environmental Impact Matrix (Macro Environment)