Mcdonalds And Tesco Growth Strategies
Mcdonalds and Tesco growth strategies
McDonald’s & Growth Strategies
Market penetration is one of the strategies McDonald’s use for growth. McDonald’s sells existing products which are fast food to the market such as Burgers and fries. Both the consumer and products that are being sold which are fast food stay the same. The reason for this is because McDonald’s sell the regular food mostly to the regular customers. The risk is also less for the business to fail as McDonald’s know the market and the market knows the products which are fast food being sold by McDonald’s.
Market development is another strategy McDonald’s use for growth. They can sell existing products in a new market which are the specific fast foods they are required. For instance McDonald’s may decide to open up another store in a new destination such as Cardiff or Merthyr or even in another country or region. Market development is quite risky if you don’t research on your new market the reason for this is because you must understand the new market where you will be selling your existing products.
Product development is the third strategy which could be used to grow McDonald’s. McDonald’s could sell their new products to an existing market. But before they start planning to produce the new product it is vital that they carry out research and development in order to come up with a new product which would satisfy the consumer by meeting their needs.
Product development is also very risky. The reason for this is because the organisation won’t know if the new product is going to be successful because it hasn’t been on the market before. There is also another risk that the new products which has been produced will eat into the market share of existing products which is being sold by McDonald’s, for instance if they sell a quarter pounder cheese burger for £1 then if they produce a new product such as a cheese burger which is four times bigger than a quarter pounder cheese burger for £2.
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McDonald’s & Growth Strategies
Market penetration is one of the strategies McDonald’s use for growth. McDonald’s sells existing products which are fast food to the market such as Burgers and fries. Both the consumer and products that are being sold which are fast food stay the same. The reason for this is because McDonald’s sell the regular food mostly to the regular customers. The risk is also less for the business to fail as McDonald’s know the market and the market knows the products which are fast food being sold by McDonald’s.
Market development is another strategy McDonald’s use for growth. They can sell existing products in a new market which are the specific fast foods they are required. For instance McDonald’s may decide to open up another store in a new destination such as Cardiff or Merthyr or even in another country or region. Market development is quite risky if you don’t research on your new market the reason for this is because you must understand the new market where you will be selling your existing products.
Product development is the third strategy which could be used to grow McDonald’s. McDonald’s could sell their new products to an existing market. But before they start planning to produce the new product it is vital that they carry out research and development in order to come up with a new product which would satisfy the consumer by meeting their needs.
Product development is also very risky. The reason for this is because the organisation won’t know if the new product is going to be successful because it hasn’t been on the market before. There is also another risk that the new products which has been produced will eat into the market share of existing products which is being sold by McDonald’s, for instance if they sell a quarter pounder cheese burger for £1 then if they produce a new product such as a cheese burger which is four times bigger than a quarter pounder cheese burger for £2.
This will