According to Market Expansion Grid, McDonalds should adopt approach of new Product Development so as to increase their Market share by adding new items and introducing a new product line for health conscious people so that they can also enjoy food of McDonalds. There is a wide scope of fast food such as salads and sandwiches in Indian Market because people (especially Adults) are getting health conscious, which may provide an advantage to McDonalds for future. So they should adopt Diversification strategy in which they can create new products for the market because diversification makes good sense as there is opportunity for McDonalds in the outside market when there is not similar product in the market. McDonalds can follow both Concentric as well as horizontal diversification strategy in which they can develop new products with earlier as well as new technology for both existing and new customers.
Sustainable competitive advantage (SCA):
Ø Sustainable competitive advantage can be defined as “an advantage that enables business to survive against competition in the market over a long period of time.” In other words we can say that it is the advantage which is difficult or impossible for other companies to break through. It can be its product, cost management or cost structure, customer care, service, or its patent. Whatever will be the advantage but the main thing is that it should be distinctive. If we consider McDonalds is a global Brand which opens approximately 500 restaurants every year. In the previous year of McDonalds they were only concentrating mostly on expansion of their outlets and franchising all over the globe than strengthening this core advantage.
Success of McDonalds has gone through many tough times, risks and competitions. But still it has been a strong and a top ranked business concerns, because it has always concentrated on its core competencies and SCA.
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