mcdonald's international strategy

The local market involves challenges because it is costly to adapt the menu according to the needs of every market (Wang and Somogyi, 2018, p.2868). Another important part of the internationalization strategy of McDonald’s involves identifying products that have international appeal (Neale, Spark, and Carter, 2018, p.171). McDonald’s is one of the largest advertisers amongst its competitors. The average number of customers served by McDonald's in a day is 70 million. The advantages of franchising are as follows, Franchises get up and running faster than other forms of ownership, Supplies are cheaper for the franchisee by leveraging the company’s supply chain, Initial investment is lower for the company, Control on usage of brand and operations is higher as compared to leasing, Franchisee gets assistance in terms of managerial know-how from the company. The United states have the most outlests with approximately 14,150 while Japan follow next with 2,975 locations (Ross, 2018). For instance, in Australia, a majority of products include chicken as the main ingredient. McDonald’s force standard operating procedures like make to order make to stock and just-in-time processes. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on then please: Our academic writing and marking services can help you! McDonald's standout markets included the U.K., Japan, China, and France, which set another all-time high in market share. This initiative is an important part of the localization strategy of the business (Ziko et al., 2017, p.674). This allowed McDonald’s to better understand the needs and preferences of customers. On the other side, in the United States, beef is the main ingredient. According to this theory, it is important for businesses to identify differences in their host culture as well as a new culture. McDonald’s global pricing strategy . The brand is operating in 118 countries across the world. The major problem faced by McDonald’s in the international market was the use of the standardized operating model. While McDonald’s faces costs of expansion into new and within markets, it is able to assess the long-term prospects of different markets and it is on this basis that it would decide when to enter a new market. McDonald’s opening in Beijing, China, on April 23, 1992 attracted more than 40,000 Chinese customers to its 28,000-square-foot restaurant, equipped 29 cash register stations to handle the flow. Similar kind of success stories were also replicated in Germany and Australia in 1971. Similarly, in Malaysia, the brand offers a Double Beef Prosperity Burger. In particular, it can open a subsidiary that franchises directly, or enter into a joint venture with a local partner, or establish a master franchising arrangement whereby the master franchisee owns and operates all the outlets in his or her territory or finds franchisees to do the same. Because of exchange rate it is possible that you end up paying different prices for same product in different countries. 120 Issue: 3, pp.639-649. Through franchise model McDonald’s are able to reduce the cost of setting up new businesses in different region. Therefore McDonald’s Promotion strategy that made McDonald’s so successful is “Think Global, Act Local”. In France, the advertising of McDonald’s focuses on French cultural values. They also started home delivery service in Singapore, where customer can place their orders on phone and have it delivered at their doorsteps. Japan came as one of the most promising and initial success story in their path of international success, where Den Fujita, owner of an import company, became McDonald’s joint venture partner in 1971. But it was only the beginning. The glocalization strategy involves the integration of the global and local. McDonalds primarily operates through franchises across various countries. Another element in the marketing strategy of McDonald’s is a specific distribution strategy through franchising. The international segment overall attracted higher customer traffic to more than offset another slight decline in the U.S. Executives credited successful promotions, digital ordering and delivery, and the move to never-frozen beef for supporting the gains. The internationalization strategy of McDonald’s has allowed it to achieve success in China, India, the United Kingdom, the United States, as well as other markets. 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