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Localised Strategy Over Globalisation McDonalds Case Study The world No.1 fast food chains, McDonalds introducing new ‘Rice Burger’ to meet local taste.

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Presentation on theme: "Localised Strategy Over Globalisation McDonalds Case Study The world No.1 fast food chains, McDonalds introducing new ‘Rice Burger’ to meet local taste."— Presentation transcript:

1 Localised Strategy Over Globalisation McDonalds Case Study The world No.1 fast food chains, McDonalds introducing new ‘Rice Burger’ to meet local taste Would this market method help its products on local appearance or ruin its image to the customers as whole? Its unbeatable history has been beaten. Restructure will help securing its leadership in industry Core business has been challenged as phenomenon of globalised economy. Business strategy becoming localised will not bring more sales, but also it’s getting into fierce local competition Enhancing on it core elements of business will help to survive

2 Brief Introduction to The Case McDonalds Case Study After popularity of introducing ‘Rice Burger’ and sale increase in Taiwan, the new product was quick spreading in Asian countries. It seems an innovative product based on local knowledge and taste, however it disobeys McDonalds’ image: Pure American Style and get into competition with local restaurants and take-aways. Thus this rewrites its marketing strategy and the range of competition in local. R&D on new products and elevation of existing products are keys to gain sustainable development in food industry.

3 Challenges to Core Business McDonalds Case Study The success of McDonalds is that McDonalds brings American diet: beef burger, chips and coke into the world. Its key value based on American style: convenient and tasty, it makes slight adjustment on its food based on local taste accordingly, yet its key value is not affected. New product based on local knowledge has significantly impact on it key value and makes no difference with local competitor, so the question is why people bother to eat that in McDonalds? Previously McDonalds was competing with KFC, Burger King and Pizza Hut which offer similar American food, the new product has enlarge its competitors’ range to locals. Would it be capable to compete after 10 years of market entry?

4 Restructure McDonalds Case Study Since 1970s McDonalds opens first restaurant in the United States, it has been quite struggling in most of countries it serving. After its restaurants shut down in Middle-east and South America, it’s unbeatable history ended. Critics say it is not working hard on its core business elements: efficiency & product Evidences show McDonalds is going to restore its 2000 restaurants in US and EU, and put new facilities in its restaurants. The emerge of new product is just an indicators of its restructure. Being honest, McDonald is first food corporate that put measure on its packing to build a loyal brand.

5 How to survive? McDonalds Case Study If its product makes no different with others, then it should enhance it efficiency on service. The environment of restaurant is crucial and is one of advantages over Stalls Make alliance with other companies to expand its service and this can minimize risks.

6 Conclusion McDonalds Case Study In fierce competition, focusing on existing products is unlikely the way to success, However, launching new products by changing its core value is very risk and make customer has more alternative options about where to eat. Massive competition would help the corporate to grow stronger in local market, yet it would be beaten without clear direction. Keywords: Globalisation, Localised Strategy, Innovative Product, Core Value, Restructure, Phrase: Fast(Quick) Food fast(quick)=efficiency & food=product. Presented By: Nan Jiang


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