McDonald’s Case Study

ASSIGNMENT 2: McDonald’s Case Study

1. How are customers’ tastes changing in the fast-food industry? What impact do these changes have on McDonald’s?

Consumers reducing demand for fast food because of improved consumer health consciousness. Consumers are reading food ingredients and calculate the calories absorbed. Consumers are increasingly likely to be fresh, healthy alternatives, rather than the traditional burgers and fast food institution. In order to make the McDonald's retain its competitive presence, they must also endeavor to continue to attract the consumer's attention. The McDonald Company invested heavily in advertising its product and improving its public image. Moreover, they also added advertising strength in terms of innovation and health products, in order to deliver more positive energy information to consumers. They are constantly updating their food menu, in the menu, adding some lower-calorie foods, such as salads, grilled chicken sandwich etc. Consumers can clearly know the calorie content of each food. These menus are also enriching the consumer choice. Companies should continue to maintain investments in products, such as McCafe beverage offerings. However, it is estimated that the fast-casual sector is growing 15 to 20 percent per year; McDonald should attempt to offer quality food of fast casual sector through its drive-thus, and should look for more opportunities in an established fast-casual chain.

2. How well are these changes in customer tastes and preferences being reflected in competitive strategies in the industry?

The changes in customer tastes and preferences are highly reflected in competitive strategies in the industry. Consumers can see through the strategies from menus, pricing and the quality of food and understand how to market their products. Fast-food chains continue to update their menus to meet the needs of customers, to more healthy food options and higher quality and nutrient rich, for example, McDonalds with healthier oatmeal or fruit cup for breakfast, Wendy’s Garden Sensations salads and grilled chicken sandwiches, and Burger King’s Chicken Whopper etc.

3. What are McDonald’s strengths and weaknesses and what conclusions do you draw about its future?

McDonald's main strength is its solid financial foundation, the world's largest hamburger chain. Company focused on investment in advertising and promotion of new products. Those other competitors can't compete. Moreover, through advertising campaigns, most people know McDonalds’ offerings such as the Happy Meal, Big Mac and Egg McMuffin. McDonald’s weaknesses include: Shares grow slower than competitors and earnings declines since the company currently does not have a foothold in fast casual dining. Overall, McDonald's seemed to change with changes in consumer tastes. As long as McDonald's continues to focus on the needs of consumers, they should be success in the food industry.

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