Analyzing the Challenges Faced by McDonald's Corporation

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Threats of McDonalds
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Threats
 Government is considering new regulations that are targeting fast food restaurants
recently.
 McDonald’s recently faces strong competition including Burger King, KFC, Pizza
Hut and others. Their competitors have strong position and customer satisfaction rate
in the fast food market (Schmid and Gombert, 2018).
 New product rollouts may often be threat for McDonald’s such as coffee from
Starbuck or smoothies from Jamba and so on. McDonald’s should ensure different
and quality products for retaining their positions.
 Commodity price can increase costs of products while weak economy can limit ability
of product quality. Setting pricing is crucial to follow effective customer retention
process.
 Regular supply of innovative products is limited for McDonalds’. They have
developed numerous products over the years that got often responses as innovative
products.
 Changing consumer buying behaviour is considered as threat for driven supply chain
model (Korstanje, 2016).
 Liability laws in several countries may be exposed to McDonald’s products in the
industry as it operates in different countries.
 Government policies and regulations are different in different countries. Paris
agreement (2016) can be considered as threat for existing product category.
 Recently, health conscious consumers are threat for such fast food chains.
 Recession sometimes affects sales of McDonalds.
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Reference list
Korstanje, M.E., 2016. Pilgrimage and sacred places in southeast Europe. M. Katic, T. Klarin
& Mike McDonalds (eds). 2014. Zurich, Lit Verlag Gmbh. ISBN 978-364390504-8. PASOS.
Revista de Turismo y Patrimonio Cultural, 14(5), pp.1309-1310.
Schmid, S. and Gombert, A., 2018. McDonald’s: Is the Fast Food Icon Reaching the Limits
of Growth?. In Internationalization of Business (pp. 155-171). Springer, Cham.
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