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案例分析和SWOT分析:罗纳德麦当劳进入中国Case Study and SWOT Analysis: Ronald McDonald’s Goes to China(3)

时间:2016-01-29 09:37来源:www.ukthesis.org 作者:英国论文网 点击联系客服: 客服:Damien

McDonald’s is an American company that emerged from the American system, and this contrasts with China’s status as a communist country. This makes McDonald’s occasionally subject to criticisms and protests from certain factions and groups. A number of criticism have emerged regarding McDonald’ employment practices, and this added to the health problems that fast food can cause, may lead to a negative public image of the company in China.

Analysis of the Fast Food Industry in China

The modern fast food industry is highly competitive. As such, any fast food company needs to establish competitive advantage to obtain a large market share. The two fast food companies that hold the largest market share are McDonald’s and Burger King. Other fast food companies such as KFC, Pizza Hut, Wendy’s and Subway each vie for larger market shares and high profits.

The fast food industry has exploded in presence and popularity in China in recent years. The first fast food giant to enter China was KFC, and this was followed by McDonald’s. These two corporations have the highest number of outlets, though competition from other fast food companies is increasing, including companies such as Burger King, Pizza Hut, Mos Burgers (Japan), Starbucks, California Beef Noodle King and Yoshinoya. Each has their own share of the market and their own way of attracting the customer, and market share is mainly defined by food categories. Most fast food companies offer the usual options such as hamburgers and chicken, while a smaller section of the market offers Pizza, Mexican food and sandwiches. Regardless of the company or establishment, the current general trend is to serve a large variety of different foods and to cater for the many different preferences of the Chinese consumer base. Given how tough this industry is, fast food companies must think of ways to differentiate themselves to gain an edge over the competition and be clearly recognized by the market.

Indentifying Problems and Opportunities

Given the findings of this case study, McDonald’s faces the problem of how to remain competitive in this industry, and how to effectively capitalize on the numerous opportunities that present themselves. If McDonald’s are unable to capitalize on these opportunities, their competitors will do so instead.

The aforementioned weaknesses do pose a number of threats. Given the fact that many adult Chinese customers do not like the taste of McDonald’s burgers, many adult customers eat there because of the popularity of the company, the relative affordability of the food and to please their children, and not necessarily because they actually like the food. McDonald’s may face trouble if they do not address this issue and improve the taste of their burgers, by losing customers to competitors such as Burger King.

Case Study Recommendations

McDonald’s should make use of its strength of innovation to adapt itself more effectively to the needs of the Chinese market. While the company is popular and readily recognizable, offers high rates of customer service and has high rates of customer satisfaction, owns strategic locations and has an excellent promotional strategy, these strengths will be diminished if the core products of the company are not appealing enough to a wide range of customers. Its core products are burgers, so the corporation should focus its efforts on improving the quality and taste of these products, before adding new options to the menu.

McDonald’s should not simply focus on the younger generation, but also on the older generation who are on the hunt for quality, better-tasting fast foods. Given the rapid expansion of the Chinese economy and the country’s increasing position on the Human Development Index, there are more and more Chinese consumers who would be willing to pay a little bit extra for such extra quality. If McDonald’s implemented this change they would be able to keep a strong competitive advantage over the competition.

References:

Panagiotou, George (2003) Bringing SWOT into Focus, Business Strategy Review, 14:2; 8-10Watson, James L. (2000) China’s Big Mac Attack. (infiltration of American consumerism)
Foreign Affairs, 79.3
Associated Press (2005) Burger King opened its first Chinese outlet in China Fast-food chain follows
McDonald’s with restaurant in Shanghai, Retrieved online on February 10, 2011
Restaurants & Institutions, The Road To China,
Retrieved online on February 12, 2011
McDonald’s Website HK
Retrieved online on February 13, 2011
China Economic Net, McDonald’s offers 24-hour services in Beijing,
Retrieved online on February 11, 2011
 

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