Question you: Which company positioning (product, development, selling or perhaps market) may best illustrate McDonald’s activities? What makes you believe so? In the case of McDonald’s actions the company alignment is offering and I can explain how come. In first I’ll clarify what is the selling positioning, and in second why it’s the McDonald orientation. If we go through the definition in the book “Marketing Management the selling philosophy or perhaps orientation is definitely “a give attention to making sales instead of understanding the customers and it’s based on an “aggressive selling and promotion effort.
So we can recognize that the advertising philosophy should be to sell, promote and sell and make money. Given that you know the meaning, take a look on McDonald. Before to talk immediately about McDonald let’s start to see the history of Beam Kroc wonderful dream. The dream of Ray Kroc was to become abundant and generate profits, like we can see in the case he starts to offer milkshakes as well as the most than he could sell. The pattern of life and the wishes of Ray Kroc has been transmitted in his company. When he made McDonald while using brothers they will tried to enforce McDonald all over the world with a wide range of restaurants and to avoid the potential competitors.
It worked within a long time currently it’s not the case because the user’s needs transform and McDonald has some problems to continue this way. So we can see that McDonald uses the selling idea. Question 2: To date, McDonald’s has averted diversification into unrelated meals retailing operations as well as nonfood options. Discuss the desirability of these kinds of diversification initiatives. McDonald’s features avoided variation into not related food selling operations and non foodstuff options cause of different things.
The of McDonald in consumer’s minds is related to food and especially fast food, could be McDonald failed to have the skills to manage new releases unrelated to food and to finish it’s more less difficult for McDonald to focus the resources on one approach and the proper way for them is actually simplify the program. Let’s speak about more generally about the diversification and especially about the benefits and disadvantages. The huge benefits are different by simply activity’s sector but discussing see several example.
The diversification can produce a growth relay (after specialization) (Ex: Membership Med in Club Med World or Club Scientif Gym before and now in a real estate program). It could reduce risk (Fram and resorts Framissima). Additionally, it could support a periodic activity. The disadvantages really are a management more complex, news conditions and rivals, it could make a dilution of the identity and image in customer’s mind and workers and a distribution of business resources. Question 3: How would you explain the reluctance of competitors to imitate the successful attempts of one more firm within their industry?
Under which circumstances is counterfeit likely to be regarded? Generally businesses are reluctant to emulate the successful efforts of a company in their sector because it requires significant expenditure that does not automatically guarantee an optimistic result. Moreover, it does not let the consumer knows the bogus so as to never pass a great imitator in consumer’s brain. But you can actually imitate in this way when there is also a monopole over a sector that will put some competition. In this case the organization who imitates if this lady has a competitive advantage regarding the other company can take a location in market.
In the case of substantial technology like in mobile phone market (imitations from the I phone). In the case the competitors will come in the market reason behind the weak points of McDonald and the will need of consumers. Query 4: So what do you think is McDonald’s immediate and long term potential? Why is you think and so? McDonald is actually a really important brand all around the world and everybody knows that. It’s the second most important in term of number of cafe all around the world at the rear of Subway. Whether or not some people criticized this kind of firm I believe it’s not possible for it to disappear actually on very long time.
The fact is in short term if perhaps McDonald doesn’t react to the consumer’s requirements and the demands of the franchisees the organization will still loose money. They were a lot of time the number one and they have ignored the customer’s needs. Today competitors show on the market and win several market share. We could notice that McDonald was the 1st real fast food in customer’s mind and that is also how come McDonald is definitely the target of consumer’s associations and movies like “Super size me. But every time McDonald reacts and is also still alive. So in long term McDonald should be more attentive to the consumer’s need and it will be ok.