Marketing Strategies Employed
McDonald’s Corporation is known to adapt well under the situations of the countries and territories it operates in. However, this was proven not to be enough to sustain and surpass given the entry of new competitors which has the same concept as the company has. As a matter of fact, McDonald’s are the market leaders in all of the markets it ventures itself to but one. It only ranks number two in the Philippines wherein a local player, Jollibee Foods Corporation has the majority of the market, 3:1.
The reason behind McDonald’s marketing strategy is to somehow decentralize the planning and implementation of certain strategies that are inherent to a place or a territorial region. This provided an easy decision making for the company as well as in addressing specific needs that may be pertinent to a region but not on the other. Under such restructuring, McDonald’s operations were then divided into certain operational clusters where cultural and societal considerations including competition could well be addressed.
Also read about negative effects of globalization in the Philippines
This move saved costs for McDonald’s Corporation since they will be able to implement specific plans to each regional cluster and made policies according to the needs and
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The rationale for the decision was brought about by the efficiency in the distribution channels of the company. Under such structure, the specific product offerings that McDonald’s offered were specific to the needs, demands, and considerations of the territorial cluster. By doing this, McDonald’s Corporation could address specific questions of competition and market share sustenance according to what ought to be prioritized.
This created a value chain for the company which needs to cope up with the creative demands of the industry in order to survive. The implementation plan for the clustering took place in one fiscal year. During this time, the framework of the clustering was laid according to the strategic premise of the management and according to the viability of the markets to be unified. It is in this manner that McDonald’s still did the plan without causing an internal managerial rift among its employees and so as not to shock them with the decision.
One factor of the industry is that it is impossible to control is the possible outcome of the future in this fast-paced industry, particularly the subject of the long-run. Considering the fast-food industry which involves a lot of creativity, the creative industry is a very volatile industry, the changes that may be predicted may occur in a matter of weeks; a shorter time span than any other markets or industries.
However, this would mean that McDonald’s Corporation sought development while at the same time, tried to adjust with the rapidly changing environment of the industry that they belong to. This appeared to be very hard on the company itself since looking for a possible trend should be decided upon immediately to avoid other fast-food service providers from setting the trends again and gaining the comparative advantage from the company.
A company obtained the advantage of the trend after they learned to adjust and then produced superior quality offerings along the line and after the company itself established the trend. The main drawback of this is that the company would only have to think of setting new trends in order for it to gain comparative advantage against other firms. The industry that it moves on tend to be very much dependent on setting new trends that’s why they have the weakness of having to set rather than develop.