McDonald's Winning Strategy, At Home And Abroad

Of all established companies that have managed to endure the many challenges time brings to their way, one stands out: McDonald’s , the company reported another blockbuster quarter both on the bottom and top lines, with sales rising across all geographic regions. How does the company do it?

Two ways: First, with a franchise business model that allows its franchisee-members, management and shareholders to share the risks and rewards from the discovery and exploitation of new business opportunities—McDonald’s model has become the norm for other franchise organizations. Second, by adaptation and innovation, coming up with fresh products and services to address the needs of a diverse consumer market—as shaped by demographic, economic and local factors around the world

In recent years, McDonald’s has continued to broaden its product portfolio by offering high quality coffee and healthy drinks (either through its traditional restaurants or the Cafés), competing head to head with Starbucks and local cafeterias—benefiting by local trends like austerity in Europe, and robust growth in China 

In the 1990's and early 2000 McDonald’s made successful efforts to restore its corporate image by launching the “Fast and Convenient” campaign that involved the radical adjustment of the company’s product portfolio to emerging food industry trends—the re-furbish of McDonald’s restaurants to achieve a banded, updated, and more natural dining environment. 

The “fast” and “convenient” elements of the McDonald’s concept were augmented by the “healthy” and “more natural” element, by adding salads, fruits, and carrot sticks to the menu.