McDonald’s Current Market Strategies Essay

McDonalds stands as the worlds largest hamburger range with over 30,000 stores in 120 countries. Yet as strong as it stands in the hamburger industry, it is still vulnerable to price competition and the afoot(predicate) federal unemployment rate. In order to try to overcome a pathetic profit margin, McDonalds is presently pursuing new strategies to help add-on its tradeplace sh are in former(a) industries. The primary objectives being targeted includes, harvest-time in gross sales, increase in profit king and market share. Current Strategies cosmos PursuedAccording to CEO, Jim Skinner, McDonalds Plan to gain ground strategy includes, plentiful our customers a unique balance of food and beverage choices is driving cognitive process in every area of the world. Skinner also stated, Were crack new menu items and classic favorites, including premium and value selections, all for our customers to ravish in our convenient, contemporary restaurants. We intend to delay our mome ntum by notwithstanding enhancing the McDonalds experience and giving customers even more reasons to visit (McDonald Corp, 2010).They are executing product development strategies by expanding the famous Dollar Menu. overdue to constant price competition McDonalds is trying to increase sales by attracting more customers into their stores by promoting products in the economical Dollar Menu. subsequently evaluating McDonalds current strategies, one of the leading strategies McDonalds is trying to happen upon is market penetration by focusing efforts on increasing their figurehead in the coffee tree industry. Due to recent closures of Starbuck stores and the current high unemployment level, few consumers are able to pay a high price for a cup of coffee. This has given McDonalds an opportunity to enter the coffee industry, and stance themselves as the low price option by offering exonerate McCaf mochas every Monday from 7 am to 7 pm to every customer. In addition, by offering an assortment of lower priced coffee drinks McDonalds is startle to attract new customers.According to Michael Bauer from SFGate, about 48% of Starbucks customers visit McDonalds at least once a week. In response to a decline in demand for Starbucks products, they lowered their prices, yet McDonalds coffee drinks remain 25%-40% cheaper. Coupled with low prices, increasing marketing efforts at heart the coffee industry has allowed McDonalds market share to increase by 5.4%.The use of franchising has always been a central strategy to McDonalds ability for rapid expansion. McDonalds involvement in forward integration done the use of proceeds from the sale of company owned stores helping pay exemptiones and buy back company stock, while paying higher dividends and creating other investments for benefit shareholders (David, 2011, 2009, 2007) clearly implies McDonalds intention to focus on franchising and not company owned stores. Through strategies such as Plan to Win, McDonalds has e stablished themselves as a very effective franchise option. Due to the majority of their stores being franchised, McDonalds Corporation can continue to rely on constant production from franchisees. ConclusionAs antecedently discussed, the strategies McDonalds is currently pursuing include, but not limited to, market penetration, forward integration, and product development. Each of these strategies are cruicial to McDonalds success. McDonalds customer focus, menu innovation and the ongoing modernization of our restaurants continue to drive our calling momentum, said Chief Executive Officer Jim Skinner. However, there are supererogatory strategies McDonalds will consider pursuing to ensure economical market advantage and customer satisfaction .ReferencesBaertlin L., Wohl, J. McDonalds October same-store sales up, U.S. slips. (2009, November 09). Reuters. Retrieved November 8, 2010 from http//www.reuters.com/article/idUSTRE5A822F20091109David, F. R. (2011). strategical Management C oncepts and Cases. Upper Saddle River Pearson Education.McDonalds Corp. (2010, September 09). Clear Station. Retrieved November 8, 2010, fromhttp//clearstation.etrade.com/cgibin/notice board?post_id=9490105&Refer=http//clearstation.etrade.com/ medical student/newcoming.htmlMcDonalds Corp. (2010, October 10). Clear Station. Retrieved November 8, 2010, from http//clearstation.etrade.com/cgi-bin/bbs?post_id=9530212&Refer=http//clearstation.etrade.com/doc/newcoming.htmlShepherd, L. Starbucks rivals brew up a coffee war. (2007, March 26). MSN Money. Retrieved November 8, 2010 from http//articles.moneycentral.msn.com/Investing/ unnecessary/DunkinAndMcDonaldsTakeOnStarbucks.aspx