Question
What are the reasons that contributed to the success of McDonald’s in dominating the global fast-food industry?
Answer
McDonald’s is regarded as one of the most successful organisations, boasting well over 35,000 stores in more than 100 countries across the world (FranchiseDirect, 2015). It could be furthermore argued that McDonald’s has created one of the greatest business models for other organisations to follow.
This short answer will analyse the characteristics of McDonald’s success and how they have sustained this, over a long period of time:
- Maintain Consistency – No matter what country a consumer is in, McDonald’s will always provide a similar experience throughout each of their locations. Customers know what to expect and can therefore rely on that knowledge when making a decision on where to eat. These efforts with regards to process repetition and efficiency not only lay foundations for Mcdonald’s success from a view of customers, but also help them to stay on top in a culture where producing at a quick pace is expected.
- Innovation – this stems from mainly responsiveness from feedback from customers and franchisees, which has played a major role in fending off stagnation for a number of years.
- Establish a brand presence – McDonald’s has done an outstanding job at establishing a brand presence, which include the widely known ‘Golden Arches’ and ‘I’m Lovin’ It’ slogan. A strong brand presence helps the business build credibility, along with trusts and loyalty to the products they offer.
- Resilience – One of the biggest reasons why McDonald’s has been a success for so long is its ability to weather challenges thrown upon them and the many lawsuits they have had directed at them over various issues.
These core elements presented, are the cornerstone to the success of McDonald’s and how they have become a top International brand over many years. However, McDonald’s face, and will continue facing stiff competition from new and established fast food chains for the majority of market share.
References
FranchiseDirect (2015) How Has McDonald’s Been Successful For So Long [online] http://www.franchisedirect.com/information/markettrendsfactsaboutfranchising/thesuccessofmcdonalds/8/1111/ Accessed 24th September 2016
