McDonald’s: Ansoff’s Matrix Essay Example

derived from this experience, McDonald’s would do well to generate menus more apposite to local tastes.

In this situation, the company has to invest in introducing new products to its existing markets, which will be well-suited for the taste of the local market, for instance, rice burger in Asia where rice is a diet staple.

Existing Product/New Market.

Here the company has to market its existing product in a new market. This is the strategy of market development. Market development can be achieved through identifying potential user groups in the current market areas. McDonald’s, in this instance, has adopted a market development strategy through franchising in many parts of the world.

The McDonald’s franchise is a classical contract of the most elaborate kind. Not only does it impose extensive requirements on the franchisee, it reads in the McDonald’s manual which defines how much beef is to be found in a bun and for how long french fries must be french fried.The result is an extraordinary uniformity in the McDonald’s product around the world and from year to year. McDonald’s branches can be virtually seen in all parts of the world, save for a very few countries, which means that new market opportunities in these unexplored territories are not so many. Thus, it would be best if McDonald’s focus on seeking additional distribution channels in the present geographical locations.

New Product/New Market.

In this situation the company has to pursue diversification strategy.Through a limited menu and a high set of standard operating procedures, it will be able to provide outstanding quality and superior price performance across its whole organization around the globe. The saturation of its existing market, fierce competition from chains

offering wider variety with competitive prices like Subway, and changing customer tastes requires McDonald’s to increase its product offerings to more than just burgers, sandwiches and drinks and should have menus emphasizing chicken, salads, and other fresh foods.Purchase of other restaurant or smaller fast-food chains would also help, not only in increasing their market base, but also the range of products that they have to offer. They can even expand to more daring ventures, like purchase of a toy manufacturer for its exclusive toy giveaways included in McDonald’s promotional products.