On July 5, McDonald’s celebrates the fortieth anniversary of its listing on the NYSE. The very popular clown was on hand during the opening bell at NYSE. These are interesting times for McDonalds because of the many changes that the chain is going through and some changes that are planned for the near future. There are several factors that are forcing McDonalds to rethink and re-evaluate their traditional success formula in keeping with changing times. The factors this article will try to explore pertain to competition and customer needs.
Competition is the biggest threat for companies operating in the fast food business. With so many new competitors offering a wide variety of choices based on type and quality of food, convenience, pricing, and extras, the need to differentiate oneself from others is seen as a big impetus for continuing success. McDonald’s is testing new initiatives like internet access in its stores, new packaging (which is a customer driven change), operational changes, introducing new products and product lines.
McDonald’s is diversifying its product line by making forays into the high-end market with its introduction of premium coffee products. Store layouts are being changed to provide a high-end look and feel. This initiative will be a direct challenge to coffee chains like Starbucks and Dunkin