The goal of this report is to provide a theoretical framework to analyse the current strategy of McDonald’s in the hypercompetitive fast-food industry of the German market and the decline of guest count. In order to analyse the external and internal influences, this report will commence with Porter’s Five Forces and the SWOT analysis. It will provide an in- depth description of the positioning strategy as well as an analysis of the marketing and operations departments. In the second part of the report the reader will also achieve understanding on how business procedures can be changed in order to keep McDonald’s of interest. This is followed by recommendations on how to improve the current situation and give an overview of McDonald’s alternative strategic approach to increase their market share as well as their profitability. The main idea of this report suggests McDonald’s to dip into the blue ocean strategy with an extended range of products. Healthier and individualized products and the extension of the beverage portfolio along with a more emotional marketing campaign is thought to enhance consumers’ loyalty. The research for the analysis comprises a qualitative approach based on industry experts, internal documentation such as McDonald’s financial statements, market reports and public announcements relevant to the strategy.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- I.CurrentSituation
- SITUATIONAL ANALYSIS- CURRENT SITUATION
- PORTER’S FIVE FORCES
- THREAT OF NEW ENTRANTS
- DEGREE OF RIVALRY
- THREAT OF SUBSTITUTES
- BARGAIN POWER OF BUYERS
- BARGAINING POWER OF SUPPLIERS
- BRAND POSITIONING
- II.Recommendations
- SMART OBJECTIVES
- SWOT ANALYSIS- ENVIRONMENTAL CHANGE
- RECOMMENDED STRATEGIES
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The report's aim is to analyze McDonald's Germany's current strategy in the competitive fast-food industry and understand the decline in guest count. It utilizes Porter's Five Forces, SWOT analysis, and examines positioning strategy, marketing, and operations departments to identify internal and external influences. The report suggests recommendations for improvement and outlines McDonald's potential strategic approach to increase market share and profitability.
- Analyze McDonald's Germany's current strategy and its challenges in the fast-food market.
- Identify internal and external influences impacting McDonald's guest count decline.
- Propose recommendations for improvement and alternative strategic approaches.
- Explore the potential of a "blue ocean" strategy with an expanded product range, including healthier and individualized options.
- Examine the impact of changing consumer preferences, health awareness, and competition on McDonald's strategy.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The introduction highlights the decline in guest count at McDonald's Germany and emphasizes the need for strategic adjustments in the face of changing consumer preferences and increasing competition. It discusses the impact of health concerns, media criticism, and evolving market trends on the fast-food industry.
- Situational Analysis - Current Situation: This chapter analyzes the current situation of McDonald's Germany, focusing on its market position, sales figures, and the challenges it faces. It explores the impact of the company's "Plan to Win" strategy and discusses the need for consistent implementation and a stronger focus on customer needs.
- Porter's Five Forces: This chapter applies Porter's Five Forces framework to the German fast-food industry, examining the threats of new entrants, the degree of rivalry, the threat of substitutes, the bargaining power of buyers, and the bargaining power of suppliers. It analyzes the competitive landscape and the challenges McDonald's faces from various stakeholders.
- Brand Positioning: This chapter examines McDonald's brand positioning in the German market, analyzing its current image and product range. It highlights the need for differentiation and the potential of an expanded product range, including healthier and individualized options, to attract new customers.
- SMART Objectives: This chapter outlines SMART (Specific, Measurable, Achievable, Realistic, Time-bound) objectives for McDonald's Germany to address the decline in guest count and regain its market leadership. It emphasizes the importance of market analysis, employee engagement, and strategic resource allocation.
- SWOT Analysis - Environmental Change: This chapter presents a SWOT analysis of McDonald's Germany, focusing on its strengths, weaknesses, opportunities, and threats. It analyzes the company's internal capabilities and external factors that can either support or hinder its future success.
- Recommended Strategies: This chapter proposes a "blue ocean" strategy for McDonald's Germany, suggesting the use of "Easy Order Terminals" and the "Made For You" integration platform to offer customized and healthier product options. It highlights the potential of this strategy to attract new customers, differentiate McDonald's from competitors, and enhance its image.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of the text include: fast food industry, guest count decline, McDonald's Germany, strategic analysis, Porter's Five Forces, SWOT analysis, competitive landscape, brand positioning, blue ocean strategy, individualized products, healthier options, market share, profitability, consumer preferences, health awareness, and competition.
- Quote paper
- Janin Ropot (Author), 2013, McDonald’s Germany Facing External Difficulties with Ramifications on Overall Decline in Guest Count, Munich, GRIN Verlag, https://www.grin.com/document/263915
