McDonald’s in relation to the market environment
McDonald’s has been a power house and a brand name recognized the world over. In the early 1990s it received a market scare with other companies emerging as potent competitors leading to a decline in its sales volumes and diminishing revenues. Burger King, Taco Bell and Wendy’s had been their main market rivals for a long time. Fast food chains Sonic and Ralls employed a simple strategy by targeting consumers whose needs were primarily to grab a quick simple burger and on the other side of the fast food market, the classy Olive Green and Taco Bell offered dinner menu services accommodating a larger clientele interested in quality fast food services. All this activity happened at a time when McDonald’s apart from trying to maintain its market share had to battle negative publicity from environmentalists campaigned against garbage generated by it restaurants on a daily basis (Barriaux, 2007). AT this point, the food chain decided to go green, partnering with the EDF (Environmental Defense Fund) to work hand in hand towards a cleaner environment through sustainable reforms in McDonalds operations (Nelson, 2010).
In a free market environment, competition serves to keep market players on their feet perpetually moving to the beat played by the market forces so as to move the masses. A proper and thorough understanding of the market forces is fundamental for survival and to stay ahead of the competition. This is two fold, which is to understand the consumers changing needs and the competitors next move and at the same time analyzing strengths to be capitalized upon and study and analyze on internal weaknesses to maximize on operations.