McDonald's Success

Résumé du document

For the last three decades, fast foods have been playing an increasing role not only in every step of the American daily life but also that of the whole world. We can't talk about fast food without thinking about McDonald as it symbolizes the fast food industry. Everyone has tasted it at least once in his life so I have attempted to discover what it is behind its success. This industry began in 1937 in South California where the McDonald's brothers used to sell hotdogs and hamburgers. When they realized that the majority of their earnings came from hamburgers, they closed their restaurant and opened another one initiating a new model of restoration: fast food. It was an instant success. Every person in the USA rushed to see the famous restaurant. The supplier RayKroc was fascinated by the restaurant, and proposed to the brothers to let him franchise the concept. In 1961, the McDonald's brothers sold their rights to Kroc. We now estimate that the brothers' earning would have reached 100 million dollars per year if they hadn't sold their rights. Gradually, a number of McDonald's opened all around The United states. In 1970 this trend became international. In 1972, the ninth McDonald's to open abroad was in launched in France. McDonald's experienced a steady increase in income until the end of the years 1980 and contributed to the globalization of economy. At present, there are 12000 McDonald's in the United States and 30 000 abroad in more than 121 countries. It is estimated that everyday day 5 McDonald's open in the world, on which 4 are abroad. This paper will discuss the strategy that McDonald's pursued to reach such a success, and how the current slowing down may be explained.

Extraits

[...] Hard criticisms A lot of stakeholders have acted to denounce McDonald's policy. Movies such as Supersize me denounces McDonalds drawbacks. In this movie a man eat every day in McDonald's during two month to denounce the negative impact of junk food on health. The book Fast food nation is also very relevant. Its adaptation on cinema is currently being developed. This book was a real revolution as it details the real condition of works by McDonalds, the power of McDonalds over their suppliers, over the market, over the economy globally. [...]

[...] McDonald's has a real monopoly on fries suppliers for example. He is the first customer and can therefore apply its rules of the game and makes huge profits. It represents one of the very oligopsony. An active strategy based on advertising But the initiation of a new model of restaurant was not the only asset of McDonalds' its other main force is its Brand. At the heart of the strategy was the creation of powerful brand that would be recognized by everybody. [...]

[...] It was a real success, every people in the USA rushed to see the famous restaurant. The supplier RayKroc fascinated by the restaurant proposed to the brothers to let him franchise the concept. In 1961, McDonald's brothers sold their rights to Kroc. We now estimate that the brother's earning would reach 100 million dollars per year if they haven't sold their rights. Little by little a lot of McDonald's opened all around The United state. In 1970 this trend became international. [...]

[...] What strategy did McDonald's pursue to reach such a success? What can explain today slowing down? Behind the success McDonalds' success is of common knowledge, what are at the roots of the success is less known and will be developed in this part. McDonalds business model and marketing strategy can explain a lot. A new revolutionary business model McDonald is the real symbol of the power of the American economy. Indeed the McDonald's brothers invented a new model in the food industry. [...]

[...] McDonald's implemented a system of reductions and promotions for students. Furthermore McDonalds also get inspired from classical game such as Uno or Monopoly where presents can be an additional, a cheeseburger or a hamburger. Probability to win is very high; the purpose is to make complement the eventual cheeseburger with something else. Advertising is the other main force of McDonald. McDonald is the brand that spends the most money on advertising in the world. Every year McDonald's creates numerous marketing campaigns broadcasted on television and structured around a specific message. [...]