Mcdonald’s: Ansoff’s Matrix

The Ansoff’s matrix enables businesses to look at their products and markets and to think of appropriate strategies for their business. It offers strategic choices facing managers in order to achieve their objectives. McDonald’s Corp. , a leading global fast food chain, which offers sandwiches and sides (cookies/chips) and drinks (juice, water, soda) like its competitor Subway, is the company to be analyzed with the matrix in this paper. In each of the four situations there are strategic choices presented below as suggestions on which McDonald’s can take action.

Existing Product/Existing Market. In this situation McDonald’s can choose to consolidate its current market position by focusing attention and initiating marketing activities in the area where it has competitive advantage, which is its powerful formula of increasing efficiency and quality. Revenues could be increased by promoting the product or the brand. McDonald’s makes substantial investments in advertising and promotions to improve its brand image, and it is a strong recommendation that this be continued, judging from the revenue figures that are always on top of the industry.

This can benefit the corporation in that strong brand keeps loyal customers coming back to the restaurants of the company and provides it maintenance of leadership in penetrated markets. New Product/Existing Market. The emphasis on quality in terms of very detailed operations manuals and tight cultural rules made it very difficult for McDonald’s to develop flexibility in meeting customers’ changing needs.

This quality trap forced McDonald’s to stick narrowly to ‘hamburgers’ until growing complaints from McDonald’s franchisees about the limited product range forced it to develop new menu items such as the Egg McMuffin, Chicken McNuggets, the McBarbecue, and the salad bar. As can be derived from this experience, McDonald’s would do well to generate menus more apposite to local tastes. In this situation, the company has to invest in introducing new products to its existing markets, which will be well-suited for the taste of the local market, for instance, rice burger in Asia where rice is a diet staple. Existing Product/New Market.

Here the company has to market its existing product in a new market. This is the strategy of market development. Market development can be achieved through identifying potential user groups in the current market areas. McDonald’s, in this instance, has adopted a market development strategy through franchising in many parts of the world. The McDonald’s franchise is a classical contract of the most elaborate kind. Not only does it impose extensive requirements on the franchisee, it reads in the McDonald’s manual which defines how much beef is to be found in a bun and for how long french fries must be french fried.

The result is an extraordinary uniformity in the McDonald’s product around the world and from year to year. McDonald’s branches can be virtually seen in all parts of the world, save for a very few countries, which means that new market opportunities in these unexplored territories are not so many. Thus, it would be best if McDonald’s focus on seeking additional distribution channels in the present geographical locations. New Product/New Market. In this situation the company has to pursue diversification strategy.

Through a limited menu and a high set of standard operating procedures, it will be able to provide outstanding quality and superior price performance across its whole organization around the globe. The saturation of its existing market, fierce competition from chains offering wider variety with competitive prices like Subway, and changing customer tastes requires McDonald’s to increase its product offerings to more than just burgers, sandwiches and drinks and should have menus emphasizing chicken, salads, and other fresh foods.

Purchase of other restaurant or smaller fast-food chains would also help, not only in increasing their market base, but also the range of products that they have to offer. They can even expand to more daring ventures, like purchase of a toy manufacturer for its exclusive toy giveaways included in McDonald’s promotional products.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Management
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
ACC/543: Managerial Accounting & Legal Aspects Of Business
EXCELLENT JOB
Customer 452773, January 10th, 2024
Business and administrative studies
Excellent job
Customer 452773, March 17th, 2023
English 101
IThank you
Customer 452631, April 6th, 2021
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
History
Don't really see any of sources I provided, but elsewise its great, thank you!
Customer 452697, May 8th, 2021
Nursing
Impressive writing
Customer 452547, February 6th, 2021
Business and administrative studies
Thank you for your hard work and effort. Made a 96 out of 125 points Lacked information from the rubic
Customer 452773, October 27th, 2023
Criminal Justice
The paper was not accused of plagiarism and was written very well. I will let you know the grade once it is graded. Thank you
Customer 452671, April 26th, 2021
DATA565
The support team was late responding , my paper was late because the support team didn't respond in a timely manner. The writer of the paper finally got it right but seems there was a problem getting the revisioin to me.
Customer 452773, April 7th, 2024
Business and administrative studies
Thank you for your hard work
Customer 452773, October 19th, 2023
FIN571
excellent
Customer 452773, March 15th, 2024
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp