McDonalds is A Competitive Fast Food Firm Essays

A Competitive Fast Food Firm Firms within the fast food industry fall under the market structure of competition. Market structure is a classification for the key traits of a market. The characteristics of a market that is competitive would include: a large number of buyers and sellers, easy entry to and exit from the market, homogeneous products, and the firm is a price taker. Take McDonalds fast food restaurant for example. In 1954, Ray Kroc became the first franchisee appointed by Mac and Dic McDonald in San Bernadino, California. He opened his first restaurant in De Plaines, Illinois (near Chicago), and the McDonald’s Corporation was created. By 1959, the 100th McDonald’s had opened in†¦show more content†¦He has been with McDonald’s for over fifteen years. He started out as a cook and quickly moved up in the ranks to his current position. He had been a District Supervisor for nearly ten years. When I asked Llyod, what is the secret of his success in his franchises, he replied that it is because he provides quality fast foods in a clean and friendly environment. He also ensures fast, friendly, and efficient service to all his customers. Llyod also said that his business provides service to a numerous quantity of people. â€Å"We provide service to a wide variety of people. Doesn’t matter what age or economic background. If people want fast service and are in a hurry to eat, they will come here.† Llyod claims that they have many competitors like Wendy’s, and Jack in the Box, however, their biggest competitor is Burger King. To maintain an advantage on the competition, Llyod says that McDonald’s provide quality food with fast, friendly, and efficient service to their customers, making them want to return. â€Å"We offer our customers a wide variety of menu items that are different from our competitors. Most other fast food places they mainly sell just burgers and fries. We offer from salads to yogurt parfaits. And our newest menu item, the chocolate dipped cone, is one item ourShow MoreRelatedDifferentiating Between Market Structures And The Market Structure1239 Words   |  5 Pagesadvancing technology.(Arthur, Levitt. (2015)) The competitive nature of an industry is what drives our markets throughout the world. An industry consists of all firms making similar or identical products. McDonald’s Corp. , which falls underneath the food and beverage industry, has implemented multiple competitive strategies under the microeconomics concepts. The market structure McDonalds Corp. competes in, the level of competition, competitive strategies and recommendations related to the strategiesRead MoreMcdonalds Case Analysis1362 Words   |  6 Pagesthat make up the fast-food industry. The demographic segment associated with McDonalds consists of a wide range of consumers with their new and improved menu that offers the success of the new dollar menu to healthier menu options including moderately priced salads. Teenagers were previously the firm’s primary targeted market; however McDonald’s objective is to target the larger, more profitable family market. McDonalds is distributed globally and known as the world’s largest fast-food restaurant businessRead MoreFast Food : A Policy Guide For Healthier Kids And Families982 Words   |  4 Pagesto gain a competitive advantag e. Where to Locate the Next McDonalds–in Your Hospital? There is more to McDonald’s than burgers, shakes, and fries. According to the article, Slowing Down Fast Food: A policy guide for Healthier kids and families, â€Å"Another way fast food corporations make sure people visit, buy and eat their food is to locate stores within easy reach of many people† (Gagnon Freudenberg, 2012, p.7). Store location is an important aspect of McDonald’s strategy. McDonald’s has $28.4Read MoreMcdonald s Success Of The Fast Food Industry Essay1592 Words   |  7 Pages Dr. Rajeswararao Chaganti 701 To: Top Executive From: Fakhriddin Yuldashev McDonalds McDonald’s Corporation operates and franchises restaurants all over the world. We are in competitive industry of quick service restaurants that is expected to grow 22% by 2017. We are the leading global food service retailer by means of over 34,000 restaurants in more than 118 countries, serving about 50 million people daily. Total revenue in 2012 was $27.8 billion, which is over 2% increase from 2011,yet McDonaldsRead MoreEssay about Value and Fast Food Customers751 Words   |  4 Pages2. What source of competitive advantage does McDonald’s have, and is that position supported by its value chain and other internal resources? -Inherit the previous CEO Cantalupo’s turnaround strategy. This strategy referred as the †Plan to win† tried to target various critical areas that needed to be addressed. -Rapid market fragmentation, which is describing the changes of consumer taste have made once-exotic foods like sushi and burritos everyday options. Many fast food customers are lookingRead MoreIn Technical Terms, Strategic Management Is Defined In1573 Words   |  7 Pagescompetitors. In a company s evolution phase, they must focus on growth and what it takes to get achieve success. This may include focusing on the reassessment of a company’s outlook on innovation. Evolution is a strategy used to stay relevant in a competitive market. Under this phase, a company might also identify the threats within the market and work on eliminating the ones that keep the company from growing. There are a series of four important phases in a company’s evolution. The first phase dealsRead MoreMcdonald s Vs. Burger King Essay1553 Words   |  7 PagesIn a place where competition is a skill to maintain, many firms will do what it takes to be in the lead. There are numerous famous bat tles being talked about daily, like Apple and Samsung... but the one we’re going to be focused on is McDonald s vs. Burger King. McDonald s, America s well known fast food chain has been growing since the day it was discovered by Richard and Maurice McDonald in 1940. The famous hamburger sensation has surpassed its restaurant presences by 1.5 times when comparedRead MoreAnalysis Of Mcdonalds The Fast Food Industry1719 Words   |  7 Pages The market has expanded rapidly, with each product being produced in many and different ways. After researching about McDonald’s, we have concluded that the corporation operates in a monopolistic competition, as there are many competitors that produce and sell products that are differentiated from on another. In the fast food industry, they all produce the same product however with different ingredients yet in a monopolistic competition they are similar when it comes to branding, quality, locationRead MoreMcdonalds Case Study1616 Words   |  7 Pagesthere are three generic strategies that a company can use to achieve competitive advantage: Overall Cost Leadership, Differentiation, and Focus (Dess, McNamara, Eisner, 2016). Applying this concept to the McDonald’s case, it is possible to infer that the primary generic strategy adopted by the company is cost leadership (Gregory, 2017). A strategy of Overall Cost Leadership is based on attracting customers using a competitive advantage based on low cost (Dess, McNamara, Eisner, 2016). AccordingRead MorePestle Analysis Of Mcdonalds1628 Words   |  7 Pagesdetermines the different external factors that offers opportunities or threats to the business based on its macro-environment. In the global fast food restaurant market, McDonalds is focused on economic and sociocultural factors. Nonetheless, the company’s success is indicative of its effective strategies to deal with all of such  external factors. As the largest fast food restaurant chain in the world, McDonalds must keep modifying its approaches based on the circumstances of its industry environment. The