CasestudyMcDonalds
McDonalds
Case Study
Overview of E-Business
Marketing
• McDonald’s is a large corporation in
the fast food industry.
• They have been around since 1955 when Ray Kroc started the chain of
McDonalds. They have been growing ever since.
• The majority of the restaurants are owned through franchises.
• They employ 447,000 people.
• They have over 3,200 restaurants in over 119
countries.
• The majority of the McDonald’s franchises are owned by individual franchises. McDonalds is the largest fast food industry in the world.
• Their primary competitors are other fast food chains such as Burger King and Wendy’s. The competition can get pretty intense to build customer loyalty to their food.
• The McDonalds Brand is one of the most well known
Brands in the world.
Marketing challenges faced
• Strengths:
• Brand Awareness
• Broad geographic locations
• McDonalds standard and conformed changes in large areas efficiently
• Weaknesses:
• There is lower operating income in Europe and
Canada – In Canada the operating income fell
12.6%, likewise the European restaurants operating income also fell at 1.5%.
• There is a relatively small revenue growth - In the last 5 years McDonalds revenues have grown at a rate of 7.5% compared to industry growth at 13.6%
• Opportunities:
• Newer products
• More franchises - less risk
• High Growth in China and Russia
• Threats:
• Competition - global, national,
regional, and local. Commodity
• Growing health conscious population
• Food safety – bacteria, e. coli, 41
-150
E-Business Marketing Goal or
Strategy
• McDonald’s real goal as a corporation is to
make money for the stockholders. Their stated goal is Long term sustainable growth for all stakeholders. • McDonalds has realized that they are reaching a big maturation stage in the business cycle, based on its profits slowing down more and more every year. It is going to be time to reinvent or re-image this corporation to try to start the business cycle over again.
Strategies….
Case Study
Overview of E-Business
Marketing
• McDonald’s is a large corporation in
the fast food industry.
• They have been around since 1955 when Ray Kroc started the chain of
McDonalds. They have been growing ever since.
• The majority of the restaurants are owned through franchises.
• They employ 447,000 people.
• They have over 3,200 restaurants in over 119
countries.
• The majority of the McDonald’s franchises are owned by individual franchises. McDonalds is the largest fast food industry in the world.
• Their primary competitors are other fast food chains such as Burger King and Wendy’s. The competition can get pretty intense to build customer loyalty to their food.
• The McDonalds Brand is one of the most well known
Brands in the world.
Marketing challenges faced
• Strengths:
• Brand Awareness
• Broad geographic locations
• McDonalds standard and conformed changes in large areas efficiently
• Weaknesses:
• There is lower operating income in Europe and
Canada – In Canada the operating income fell
12.6%, likewise the European restaurants operating income also fell at 1.5%.
• There is a relatively small revenue growth - In the last 5 years McDonalds revenues have grown at a rate of 7.5% compared to industry growth at 13.6%
• Opportunities:
• Newer products
• More franchises - less risk
• High Growth in China and Russia
• Threats:
• Competition - global, national,
regional, and local. Commodity
• Growing health conscious population
• Food safety – bacteria, e. coli, 41
-150
E-Business Marketing Goal or
Strategy
• McDonald’s real goal as a corporation is to
make money for the stockholders. Their stated goal is Long term sustainable growth for all stakeholders. • McDonalds has realized that they are reaching a big maturation stage in the business cycle, based on its profits slowing down more and more every year. It is going to be time to reinvent or re-image this corporation to try to start the business cycle over again.
Strategies….