Mc Donald's

INTRODUCTION

The story of MacDonald’s started in 1954 with its funder Raymond Kroc who envisioned a nationwide fast food chain.

The McDonald‘s Corporation is one of the most successful global restaurant chains around the World.

Today, only 15 % of the total number of restaurant are owned by the company. The remaining 85% is operated by franchises.

They have used effective management and global expansion strategies to enter new markets and gain a share of the foreign fast food market.

The company have gained universal recognition. Though the company has roots in the US, MacDonald’s today has become an accepted citizen of the world.

We will see how McDonald‘s enters into a foreign market and what strategies it uses in order to be a dominant leader in the fast food industry at low cost.

According to this pie chart, which shows the fast food market share in the world in 2013. There are four main component in this market: the first one is McDonald’s which was the fast food leader in 2013, followed by Burger King representing a little over 14% and Wendy’s representing nearly 13%.

The pie chart shows that McDonald’s owned a large part of the market, and that this fast food have found effective strategies to be recognize as a leader.

STRATEGIES TO LUNCH NEW MARKET

Offering a wider variety of food to attract more segments

McDonald's is trying to get more consumer segments by expanding non-traditional menu items, while keeping its core base of burgers-and-fries eaters.

Delivering food to customers in places that demand it

McDonald's delivers in many markets around the world, and the company cites it as one of the reasons it has been so successful in those markets, delivery is a common practice.

Making its stores more attractive to get customers in

McDonald's is improving its physical locations to make them more appealing to customers, and it seems to be working.

Focusing on emerging markets

McDonald's is already everywhere, but it hasn't quite saturated the world yet. Over the past few years, McDonald's has made a heavy push toward emerging markets. And not just trendy markets like China and India, but places like some African nations.

This line chart shows the evolution of McDonald’s Revenue by Segments between 2013 and 2014.

As we can see, each segment have declined between 2013 and 2014. The Europe segment’s revenue declined 12% year over year. Next, the US segment experienced a decline in revenue by 2%. The Asia Pacific Middle East and Africa region’s revenue dropped from 1.610 million dollars in 2013 to 1.5 million in 2014, followed by OCC with a very little decline.

The graphs shows that the APMEA represented a large part of Mc Donald revenue, that’s why they have to focus on it. Moreover,

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