Recommended Strategies McDonald’s should consider to Meet the Challenges in the Future



McDonald’s operates in an environment that is increasingly becoming very unpredictable due to market changes. To survive in such an environment, the firm’s management team should focus on enhancing its competitiveness. To achieve a sustainable competitive advantage, the firm should consider the following aspects.

Market development: The firm’s management team should consider expanding its global footprint by venturing into new markets. The firm should target the emerging economies in order to benefit from the high rate of economic growth that characterizes such economies. In its market development, the firm should introduce its current products into the new markets. Through franchising, McDonald’s will increase the likelihood of success in the new market by maintaining the quality of its products hence sustaining the firm’s brand value (Spinelli, Rosenberg & Birley 2004).

Market penetration: McDonald’s should focus on achieving growth by improving the market share for its products in its current market segment. To stimulate growth, the firm should undertake an aggressive promotional campaign in addition to the adjustment of its pricing strategies. This approach will improve the attractiveness of the firm’s products to different customer groups (Spinelli, Rosenberg & Birley 2004).

Product development and diversification: In expanding into new markets, McDonald’s should undertake product development by developing new products to be introduced in the existing market. Alternatively, the firm should consider diversifying its product portfolio by developing new products to be introduced in new markets. In undertaking product development and diversification, McDonald’s should consider entrenching the concept of product localization. This will ensure that its product offering meets the target customers’ product demands and needs (Bachmeier 2013).



Bachmeier, K 2013, Analysis of marketing strategies used by PepsiCo based on Ansoff’s

            theory, Grin Verlag, London.

Spinelli, S, Rosenberg, R & Birley, S 2004, Franchising; pathway to wealth creation, FT

            Prentice Hall, London.







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