With the number of health conscious consumers rising, Mcdonald’s has been under pressure to incorporate healthier meal options in its menus. This change is planned to occur in 20% of the firm’s largest markets.

Utilizing Lewin’s Force Field Analysis, it seems that there are many driving and restraining forces towards this change. A major driving force is that McDonald’s is currently facing rising competition from its major competitors such as Subway and Burger King, who both have taken the initiative to incorporate healthier options in their menus. Sales for McDonald’s have fell flat for the past year, one reason for this may be because more people are starting to lean towards a healthier diet, according to The International Food Information Council’s 2013 Food & Health Survey. With the introduction of healthier meal options, McDonald’s could potentially build its customer base and avoid their more health conscious consumers switching to substitutes. McDonald’s could also avoid potential conflict from its external stakeholders such as the FDA who regulate the safety and healthfulness of the food that McDonald caters.

The biggest restraining force of this change is the cost, which is estimated at $35 million. However, it seems that McDonald’s will go forward with this change as the driving forces seem to outweigh the restraining forces. This is because this change could possibly allow McDonald’s to expand its customer base and also allow them to avoid possible stakeholder. This would enable McDonald’s to remain profitable in the long term and thus cover the costs associated with this change.

Image: A new ad for Mcdonald’s, with a side salad

Works Cited

“Consumer Confusion Reigns: Fat’s Role in Healthy Eating Habits | Annette Maggi.” Breaking News and Opinion on The Huffington Post. N.p., n.d. Web. 6 Oct. 2013. <http://www.huffingtonpost.com/annette-maggi/consumer-confusionreigns_b_3823201.html>.

Xiaomi, a Chinese smartphone company established in 2010, is already being compared to the American giant, Apple. Xiaomi holds a firm grip within the Chinese market, having a 5% market share for the second quarter of 2013, exceeding Apple’s 4.8% for the first time.

There are two main reasons for Xiaomi’s success (outlined in this video):

1. Affordable Price and Unique Revenue Streams: Xiaomi sells its phones for $330, far cheaper than the $860 iPhone. Selling at a lower cost allows Xiaomi to attract a larger customer base. Xiaomi remains profitable nonetheless because it is able to cut costs through its short channel of distribution, selling directly to customers online rather than through retail stores. Likewise, Xiaomi has a unique revenue stream. Instead of gaining revenue solely from the sale of the phone itself, it also gains profit from selling services, such as apps and wallpapers, to its customers. This may not sound lucrative but Tecent, one of China’s largest internet appstores, sold $5billion worth of these services last year.

2. Strong Customer-Oriention: When it comes to its customers, Apple is very autocratic and product oriented, limiting user customization and feedback. Xiaomi on the other hand is more customer-oriented, getting feedback from customers on Weibo on potential features for its future models. This plays an important role in Xiaomi’s success, as it closes the gap between the company and its customers and thus builds customer loyalty.

Image: Xiao Mi’s boss Lei Jun holding a press conference on Xiao Mi’s new release, the Mi3

Works Cited