Source: http://freightlinersf.com/
Over the years, McDonald’s has built a reputation of providing, fast and delicious food at an affordable costs. However, as times have changed, so have the tastes of consumers. These days, people have become more aware of healthy living, and how a diet based on “burger, fries and soft drink is an ‘unhealthy choice'”. As a result, McDonalds has been introducing healthier choices such as caesar salads, and grilled chicken snack wraps. While I applaud McDonald for providing healthier choices to consumers, I cannot say I don’t have doubts about their change in market strategy. For a company that has relied on a cost leadership strategy for so long, developing a new focus (differentiation) strategy will take millions of dollars and a very long time. Yet, in the hearts and minds of people, McDonald’s is still a fast food company.
One must also notice McDonald’s increasing prices as it shifts to a focus (differentiation strategy). Ten years ago, one could buy a Big Mac meal at McDonalds for less than five dollars; the same meal now costs almost 10 dollars. McDonald’s target segment has always been the been the lower-income, and college students. The pains of these people are not having much time or money and McDonald’s provided them with fast, cheap meals. But McDonald’s new strategy targets the wealthier and health-conscious, a market segment already fulfilled by competitors like Subway and Quiznos, at the cost of the former. Lastly, many of McDonald’s healthier alternatives, such as “chicken sandwiches–even if they are grilled–are higher in calories and/or fat than we prefer,” making it even more doubtful that they will become a healthier choice in the minds of consumers. Therefore, McDonalds should return to its roots, and provide cheap, unhealthy meals.
Links: https://blogs.ubc.ca/jasonwong123/
http://www.sparkpeople.com/resource/sparkdining-eatery.asp?id=3
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