Mcdonald’s: Ansoff’s Matrix

The Ansoffs matrix enables businesses to look at their mathematical productions and markets and to think of book strategies for their business. It offers strategic choices facing managers in order to achieve their objectives. McDonalds Corp. , a leading global fast food chain, which offers sandwiches and sides (cookies/chips) and drinks (juice, water, soda) like its competitor Subway, is the follow to be analyzed with the matrix in this paper. In each of the quartet blank spaces there argon strategic choices presented below as suggestions on which McDonalds can take action.existent Product/Existing Market. In this line McDonalds can choose to consolidate its ongoing market attitude by focusing attention and initiating marketing activities in the area where it has agonistic advantage, which is its powerful formula of increase efficiency and quality. R eveues could be increased by promoting the product or the pock. McDonalds makes substantial investments in advertising and p romotions to improve its brand image, and it is a strong recommendation that this be continued, judging from the revenue figures that are always on top of the industry.This can benefit the corporation in that strong brand keeps loyal customers coming back to the restaurants of the companion and provides it charge of leadership in penetrated markets. New Product/Existing Market. The emphasis on quality in terms of very detailed operations manuals and tightlipped cultural rules made it very difficult for McDonalds to develop tractableness in meeting customers ever-changing needs.This quality trap forced McDonalds to stick narrowly to hamburgers until growing complaints from McDonalds franchisees about the limited product range forced it to develop new carte items such as the Egg McMuffin, Chicken McNuggets, the McBarbecue, and the salad bar. As can be derived from this experience, McDonalds would do well to generate menus more apposite to local orientations. In this situation, t he company has to invest in introducing new products to its existing markets, which will be well-suited for the taste of the local market, for instance, rice burger in Asia where rice is a diet staple. Existing Product/New Market.Here the company has to market its existing product in a new market. This is the dodging of market discipline. Market development can be achieved through identifying potential user groups in the current market areas. McDonalds, in this instance, has adopted a market development strategy through franchising in many parts of the world. The McDonalds franchise is a classical contract of the most elaborate kind. Not only does it put down extensive requirements on the franchisee, it reads in the McDonalds manual which defines how much plain is to be found in a bun and for how long french fries must be french fried.The result is an extraordinary unison in the McDonalds product around the world and from year to year. McDonalds branches can be virtually seen in all parts of the world, retain for a very few countries, which means that new market opportunities in these unexplored territories are not so many. Thus, it would be best if McDonalds focus on seeking additional distribution channels in the present geographical locations. New Product/New Market. In this situation the company has to pursue diversification strategy.Through a limited menu and a high set of standard operating procedures, it will be able to provide outstanding quality and superior price death penalty across its whole organization around the globe. The saturation of its existing market, barbarous competition from chains offering wider variety with competitive prices like Subway, and changing customer tastes requires McDonalds to increase its product offerings to more than just burgers, sandwiches and drinks and should behave menus emphasizing chicken, salads, and other fresh foods.Purchase of other restaurant or smaller fast-food chains would also help, not only in increasing their market base, but also the range of products that they have to offer. They can even expand to more daring ventures, like purchase of a play manufacturer for its exclusive toy giveaways included in McDonalds promotional products.