Good McDonald’s Case Study Case Study Example

Question 1:

Customer tastes in the fast food industry are changing rapidly. This is attributable to the fact that customer preferences on what they want to eat is changing fast. From the case study, it is clear that customers prefer non-hamburger sandwich restaurants to traditional hamburger restaurants. Furthermore, customers are preferring fast-casual restaurants. This is mainly because the fast-casual restaurants serve more upscale meals and provide an excellent environment for wining and dining. These changes have greatly affected McDonalds since it is losing revenue. The company is losing revenue to non-hamburger joints and fast casual restaurants. This has led to the company developing new strategies in order to meet customer demands and remain profitable.

Question 2:

The changes in customer tastes and preferences are being reflected excellently in the competitive strategy in the industry. From information provided in the case study, it is clear that customer preference for non-hamburger joints has led to a growth in joints such as Pizza Hut, and KFC. In addition, changes in customer preference on dining in fast casual restaurants has led to a growth of 2% per year within the segment. In order to remain competitive, McDonalds has also started evaluating strategies through which it can attract new customers. This include rebranding itself and opening cleaner restaurants. The company has also concentrated on improving its drive through system since it is expected that it will lead to an increase in customer traffic as well as revenue.

Question 3:

The main strength McDonald has is consumer loyalty. The restaurant has heavy users who contribute positively to its competitive advantage within the fast food segment. From the case, it is evident that McDonald is flexible and is ready for change. This implies that the company can easily adopt strategies and polices that can help it regain its market share. The company also has enough funds to research market strategies as well as market its brand to consumers. McDonalds is also setting up newer restaurants that will reflect present consumer preferences. This will also help to attract newer customers.
The main weakness that McDonald has is a tainted brand image. The company has a “cheap and greasy” brand image and this may negatively affect its customer loyalty.
Examining the strengths and weakness discussed above it is clear that McDonalds has a bright future since it can be able to meet present customer preferences.

Question 4:

Yes, McDonalds should develop a separate strategy for the heavy user segment of the fast food industry. Information from the case shows that 20% of customers are heavy users. This segment accounts for up to 60% of all visits to the restaurants. This implies that the restaurant must develop a separate strategy in order to ensure that the needs of this segment are met. Furthermore, based on the case, heavy users spend up to $40 per visit. Developing a separate strategy for this segment would greatly increase McDonald’s revenue.

Question 5:

In order to grow sales, profits and market share Greenberg should introduce new products. The company should research market needs and come up with new products to satisfy customer needs. McDonalds should also rebrand by building stores with better designs. This will help in eliminating the “cheap and greasy” image. It should also increase the efficiency of its drive through system. The case study shows that an efficient drive through can help in increasing the number of orders processed as well as company revenue.