McDonald's BCG Matrix

Introduction

The 4-D framework (BCG Matrix) is a tool for understanding where a company fits in the business landscape. This framework helps a company see its overall performance and prospects and understand the competitive positioning of the company segments.

It gives insights into the company's main advantages and disadvantages. This framework aims to help managers analyze and compare different strategies and tactics to gain a competitive advantage.

The BCG matrix of McDonald's can be used to improve the company's performance. It is a tool that can be used by senior management to assess and make decisions on strategy.

To learn more about the BCG matrix of McDonald's, continue reading.

Background of McDonald's

McDonald's is a multinational restaurant chain founded by brothers Dick and Maurice McDonald in 1940s San Bernardino, California. It serves fast food consisting of hamburgers, French fries, soft drinks, and other menu items. It is also known as a fast-food restaurant.

The company was the first franchisee of the Golden Arches logo, a symbol used to identify franchised McDonald's restaurants. The first store opened in 1948 at 940 South Euclid Avenue in Pasadena, California. Since then, McDonald's has grown into a global corporation in over 100 countries and territories.

Bcg Matrix of McDonald's

Dogs

Those business sections with low market share and poor sales performance are termed "dogs." Such divisions have a negative impact on the financial health of businesses and enterprises. The most effective tactics for dealing with dog sectors are liquidation and downsizing.

Stars

In the BCG framework, industries with significant sales growth and a large market percentage are considered "stars." In geographical segmentation, the Europe sector of the McDonald's network of restaurants is a star.

The Europe section of the company has earned the most profit during the last two years. Such a sector requires a marketing strategy expansion and brand recognition to ensure long-term financial viability.

Cash Cows

Businesses rely on their "cash cows" for their financial security. As a result, they dominate industries with slow sales growth. The McDonald's America division brought in 31% of the total yearly income for the company.

There is one exception to this rule, however: McDonald's America. When it comes to fast-food restaurants in the United States, competition is fierce, consumers have a wide variety of options to choose from, and new restaurants enter the market often.

McDonald's has to expand its menu, attract a broader range of customers, and determine their preferences for good food to meet them.

Question Mark

The question mark describes the APMEA McDonald section. Such a market sector has a small percentage of the overall market and competes in a rapidly expanding industry. The McDonald's APMEA sector must develop an effective product formulation and commercialization plan.

To make this market a star, McDonald's has to expand its franchise network and bring new goods to the market based on consumer demand.

Mcdonald's Marketing Strategy

Because the company does many things right, they have excellent branding and marketing, so people associate their brand with quality food and service. They also give back to their communities.

This makes McDonald's a lot easier to sell to customers. They're known for their products and services. So what are the top four marketing strategies that helped the company earn its global success?

Product

The menu should include a variety of foods that will appeal to different types of customers. For example, if you're targeting kids, you might want to include toys and games on the menu. If you're targeting families, you could offer special deals on meals for the whole family.

Place

This McDonald's marketing strategy involves finding a location for your restaurant. You need to find a place with high foot traffic and lots of potential customers. This can be a mall or a shopping center. It's important to find a location that will give you the best return on your investment.

Price

McDonald's price strategy is to offer a low-priced menu with value meals. Customers can choose from a wide selection of menu items that cost less than $4.99. This strategy works well for McDonald's because it offers cheap meals to the public.

Promotion

Promotion is the best way to get people to buy your products or services. The best way to promote your brand is through advertising. Advertising can be done through print, radio, television, billboards, and other forms of media.

McDonald's is a very successful company because they have a very well-known brand. When people see the McDonald's logo, they automatically think of the brand. This makes it easier for them to decide to go to a McDonald's restaurant.

You can take it as McDonald's BCG matrix example.

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Key Takeaways

As we end our article about the BCG Matrix of McDonald's, we hope that you have gained new knowledge. Use the BCG Matrix to manage your company's investment portfolio. Your business units can then be categorized as Cash Cows, Stars, Question Marks, or Dogs. This sort of classification can assist in directing your managing choices.

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References

• https://iide.co/case-studies/mcdonalds-marketing-strategy/
• https://www.coursehero.com/file/p3170q4/BCG-MATRIX-OF-McDonalds-The-need-for-strategy-in-order-to-expand-its-existing/
• https://bcgmatrixanalysis.com/bcg-matrix-of-mcdonalds/
• https://www.britannica.com/topic/McDonalds
• https://en.wikipedia.org/wiki/History_of_McDonald%27s