McDonald's, in fact, is thriving. While its competitors are weakening, Ronald McDonald is seeing increasing profits, sales, and improving stocks.... But why?
When asked in an interview by CNN, Karen Wells, vice-president of "strategy and menu" says that:
"there's two things that's really attributed to McDonald's success. First and foremost, listening to our customers. It's menu variety, it's value and affordable prices at McDonald's and the convenience that only McDonald's can offer.
The other piece is our system alignment around one plan. You know, under the arches we have a term called the three-legged stool. It's our franchisees, our suppliers and our corporate staff working together. Those are the two things that have worked for McDonald's and our success."
This doesn't exactly explain their success, I mean, I'm sure most companies try to "listen to their customers" after all...
What do you guys think about this?
3 comments:
I'm not sure that every individual customer's opinion and input is going to affect McDonald's overall menu. To me, the only plausible reason that would explain McDonald's increased sales would be because people are going to cheaper foods. We were already a fast food nation to begin with, and now considering our economic turmoil, we're beginning to see many other high-end restaurants going bankrupt or struggling to fill their tables on what would normally be a busy Friday night. The food is cheap, and although it is packed with fattiness and all sorts of grossness, it is simply the most convenient alternative. I'll agree that McDonald's does have a good variety of foods on their menu (all sorts of burgers and "low fat" salads etc), but I think that this is more due to smart marketing strategies in appealing to wide variety of people, rather than actually listening to their customers. Don't get me wrong, I'm sure McDonald's takes into consideration what consumers enjoy, I just think that attributing success to this is sugar-coating it a bit.
In my opinion, McDonald's success is attributed to the fact that it is cheap and convenient. Rather than make your own cheeseburger and fries, it is much easier to pay a few bucks at Mcdonald's, even if it is filled with fat and other unhealthy ingredients. Practically anyone can tell you that this fast food chain isn't the healthiest option, but i don't really think people care too much. Especially now, I think that people are less focused on how unhealthy it is and more concerned with how much money they are using. Also, from my perspective, I would consider McDonald's food to be an inferior good because when income decreases, the higher the demand. As income increases, it is more likely for a person to dine at a quality restaurant rather than a fast food chain.
I would have to attribute mcdonald's success to it's marketing scheme and overall addictiveness. Mcdonalds food is not cheap, a better, healthier meal can be made for an much smaller amount than the $6.50 it takes to buy a big mac meal at a mcdonalds. it is because of their advertising that we are convinced that they are cheap. And while i concede that mcdonalds is fast, it is not anything else.
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