Mcdonald’s: Ansoff’s Matrix

The Ansoffs matrix enables businesses to look at their products and trades and to think of admit 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 company to be analyzed with the matrix in this paper. In each of the four situations there be strategic choices presented below as suggestions on which McDonalds give notice chair action.Existing Product/Existing Market. In this situation McDonalds can choose to consolidate its current market position by focusing management and initiating marketing activities in the area where it has competitive advantage, which is its powerful formula of change magnitude efficiency and quality. Revenues could be increased by promoting the product or the brand. McDonalds makes substantial investments in advertising and pro motions 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 company and provides it maintenance of leadership in penetrated markets. tonic Product/Existing Market. The strain on quality in terms of very detailed operations manuals and tight cultural rules made it very difficult for McDonalds to develop tractability in meeting customers changing needs.This quality trap forced McDonalds to stick narrowly to hamburgers until growing complaints from McDonalds franchisees about the limited product ply forced it to develop new menu 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 beat menus more apposite to local tastes. In this situation, the 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 outline of market development. 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 barely does it impose extensive requirements on the franchisee, it reads in the McDonalds manual which defines how much beef is to be found in a bun and for how long French fries must be french fried.The result is an extraordinary uniformity in the McDonalds product around the world and from year to year. McDonalds branches can be virtually seen in all parts of the worl d, save 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 sample operating procedures, it will be able to provide outstanding quality and superior price performance across its whole organization around the globe. The vividness of its existing market, fierce 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 unspoiled burgers, sandwiches and drinks and should have 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, b ut also the range of products that they have to offer. They can even expand to more daring ventures, like purchase of a toy manufacturing business for its exclusive toy giveaways included in McDonalds promotional products.