Mcdonalds China

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McDonald’s:

Is China Lovin’ It?

https://www.coursehero.com/file/11461182/McDCaseSlides/

1/30/2014

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Assessing Key Factors

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• What are McD’s key strengths?

• What do the new consumers in China want?

• What enviro forces are shaping consumer demands &

preferences?

• Who are the most valuable customers to focus upon? (This

particular case doesn’t give us a ton to go on…but there is info

to allow geographic segmentation and/or focus on young

adult market)

• Who are McD’s primary competitors & how are THEY

addressing consumers’ needs?

https://www.coursehero.com/file/11461182/McDCaseSlides/

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Developing Strategy

What

consumers

want

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• Mc’Ds must determine their key

points of differentiation.

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• Competitive advantage comes

from the ability to deliver superior

customer value relative to

competitive firms. What can they do

better than the rest???

https://www.coursehero.com/file/11461182/McDCaseSlides/

Brand

does

well

Brand

Competition

does

does well

well

Porter’s “Five Forces” Considerations

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Supplier

Power

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High Threat, Intense Rivalry, due to:

- Numerous competitors

- Low switching costs for consumers

- Diverse rivalry (no agreed “rules of game”)

- Local firms gaining expertise/experience

- Int’l entrants w/$ backing & experience

Threat somewhat lessened b/c:

- Suppliers somewhat

dependent on McDs…receive

a lot of benefits from

relationship (modern tech,

business models, training)

- McDs is a huge player, has

bargaining power

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Notable, but somewhat Dampened by:

- McD’s enjoys economies of scale

- Established, complex supply channels

- Experience curve advantage

- Strong...