McDonald Hong Kong Case Study
Autor: Mona Moby • February 11, 2017 • Case Study • 454 Words (2 Pages) • 888 Views
McDonald Hong Kong
McBalanced Active Life style | Pre | Post |
Generic Business Level Strategy | Cost Leadership | Product Differentiation |
Theory | The lowest cost of operation in the industry, driven by company efficiency, size, scale, scope and cumulative experience. (Michael and David, 1997) | The process of distinguishing a product or service from others, involves differentiating from competitors' products as well as firm's own products. (Edward, 1933) |
McDonald | Cost of Operation | Differentiation: Launched McCafe from 1999. Changing the perception of McDonald, from Junk Food to High Quality food. |
Strategy Effective?
The current strategy is not effective. The fast food industry becomes health focus. Government advocates health and balanced lifestyle. More high quality fast food restaurants entered in to Hong Kong Market, such as Subway and Oliver’s Sandwiches. McDonald more likely reacts to competitors instead of being a leadership anymore.
The below chart showing McDonald’s reaction by 4Ps. (James, 1940):
| Subway | Oliver's Sandwiches | McDonald/McCafe |
Promotions | Tasty and Stay Fit | Fresh Attitude | McBalanced Active Life Style |
Price Level | HKD 40 - 50/meal | HKD 40 - 50/meal | HKD 40 - 50/meal |
Products | Subs(Bread)/Salad | Sandwiches/Salad/Potatos | Burgers/Sandwiches/Salad |
Place | Commercial area | Commercial area | Commercial and Residental area |
McDonald used to focus on making burgers. However, they are now developing wider range of products. They get involved in the sandwiches and salad. For the burgers, they prefer to create high quality one, like Angus Beef Burgers.
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