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Market Trends for McDonalds Corporation

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Prepare a paper in which you describe market trends organization/industry will face. Explain your conclusions. In your paper address how each of the following will change or will not change, and why:
a. Market structure
b. Impact of new companies entering the market
c. Prices
d. Technology
e. Productivity (consider the law of diminishing marginal productivity)
and a conclusion explaining if these trends will or will not change from current market trends

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Solution Summary

Prepare a paper in which you describe market trends organization/industry will face.

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a. Market Structure:

Fast food industry has a competitive market structure with relatively homogenous product and large number of buyers and sellers. Further, the increasing health consciousness among the US consumers and increasingly fast paced nature of US consumer lifestyles is fueling the growth of bakery products segment within the fast food industry. Traditional fast food companies like Mcdonald's are falling behind in pace of growth against these newly emerging bakery product chains, such Krispy Kreme.

The most important trends in the foodservice industry include the launch of healthier and more diversified menu options, the blurring of channels, and the growing importance of manufacturers' brands as foodservice companies stress the quality of their products served. Additionally, restaurant operators are using format innovations to increase sales per outlet and developing alternative sales channels away from actual restaurants to diversify revenues.

Apart from traditional refurbishments, restaurants are increasingly resorting to multi-branding. This involves the combination of two or more restaurant concepts in a single location. Such restaurant combinations focus on complementary daypart strengths in the hope to generate higher sales volumes from such units.

The opening of satellite restaurants is yet another format innovation, which responds to today's mobile lifestyles. Satellite outlets are smaller than traditional outlets and offer a limited version of the menu. Both McDonald's and Yum! Brands have opened satellite restaurants in high traffic areas such as city centres ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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