Sunday, 24 October 2010

competitor analysis of firm

Competitor Analysis

McDonalds is on the first franchising company in the world with sales more than $31.81 billion. The biggest competitor of McDonalds as of now is Burger king which follows the sales of $9.01 billion. (Kotler et al, 1998) The strength of McDonalds has always been standardization where the company has provided same consistency of the products where their burgers taste the same everywhere. It has been targeting the children and teenagers, which later become their future loyal customers. “The well technologically developed H.V.A.C systems provided the company restaurants with a healthy environment” (Markatos, 2006) one another capability of this company is that the company can afford a huge budget of marketing and advertising their campaigns around the world. (Markatos, 2006)

Internal Analysis
The staff in McDonalds are usually young people generally students that work as part timers. The main disadvantage in this would be the major turnover of but it can be balanced as the expenses in training the new employees in limited. Also all the raw material the company uses for the production of the items in their menu come from different suppliers. These companies for eg McDonalds try to use local suppliers just so that they could meet the needs of the customers when in different countries. The best example would her be India, as in India selling or eating of beef is banned due to religious issues. So they had to look for a local supplier to find an alternative. (Markatos. 2006)

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