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McDonald’s Failure In Expanding Internationally

  • Writer: Miguel Virgen, PhD Student in Business
    Miguel Virgen, PhD Student in Business
  • Oct 5, 2024
  • 4 min read

Updated: Apr 24

Food safety ranks first in any ranking of public concerns worldwide. McDonald's suffered losses when a covert television inquiry accused the company of using an inland Chinese supplier to relabel expired meat. The company announced that sales at Similar stores in Asia, the Middle East, and Africa continue to hurt from the scandal and fell 5 percent in the fourth quarter compared to the previous year. Chinese consumers are suspicious and vigilant of the brand and not persuaded that McDonald's is in control of supply chain difficulties.

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Notably, Mcdonald's has relished a status for hygiene, excellence, and safety across mainland China. As a result, food quality issues coincide with other tendencies affecting Western fast-food brands. Chinese fast-food customers have moved away from their initial inquisitiveness for American fast food and are more elaborate and health-oriented.


The company’s mistake proved offensive to the local population as Individuals viewed it as a breach of ethical rules and safety health concerns. Cleanliness in the food industry is paramount to the safety and well-being of consumers. Also, cleanliness issues in the food industry have severe consequences such as increased health problems and death for consumers. The local population in China is still skeptical about using McDonald's products, and the company faces more pressure for fast-casual Chinese restaurants. Consumers in this market shift their focus towards finding alternatives that are healthier and safer. The fast-food company should be well situated to benefit from China's rising demand for contented, hygienic, and cheap meals.

 

It is difficult to regain confidence in a market known for its demanding and picky consumers. The fast-food company should apply its innovative asset to better familiarize with the wants of its global market. While Mcdonald's is famous and easily identifiable, has excellent purchaser service and satisfaction levels, and has tactical sites. The company also has an outstanding publicity policy. These assets diminish when the company's core products remain unattractive for most customers. The company should focus its efforts on improving the quality and taste of its main products before adding new choices to the menu. Better flavors and improved product quality will entice more consumers to continue using the company's products for an extended period.

McDonald's should target young consumers and adult consumers looking for high-quality, better-tasting products. Due to the fast-expanding Chinese economy and the nation's growing position in the Human Development Index, more customers would be eager to pay extra for this additional quality. If Mcdonald's applied this alteration, they could maintain a substantial competitive advantage over the competition. Also, by improving the quality of food products, McDonald's will enable consumers to relate to its brand and strengthen their dependency on the brand. Quality rather than costs entice the Chinese market and consumers. If the quality remains high, the company will see a rise in sales and experience a better reputation. With a fast-growing Chinese economy, Mcdonald's will reap huge benefits from brand royalty driven by quality standards.

Several adult Chinese clients dislike the taste of Mcdonald's hamburgers and use the company’s products because of its popularity, the relative pricing of the food, and to satisfy their children. McDonald's will have problems if they fail to talk about this problem and advance the flavor of their burgers by losing clients to competitors like Burger King.

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Other fast-food companies can learn from McDonald's mistakes and avoid additional issues using several strategies. First, fast-food companies should remain cheap. McDonald's enforced the launch of the Sirloin Third Pounder. This burger costs guests $ 5 and is more costly than the double cheeseburger from the company's menu. McDonald's has continuously sold a quality burger as the fast-food chain presented a variety of Angus Third Pounder burgers that sold for $ 5. The products began before falling off the menu after four years in 2013. McDonald's and other fast-food companies will keep their faithful client base content and return due to reduced prices. Pricing strategies determine the overall success of global organizations. Therefore, setting ideal prices will entice consumers to believe in the brand and the quality of products. Multinational companies should put more emphasis on their pricing strategies to prevent overcharging loyal consumers. Additionally, reasonable prices will improve consumer loyalty and increase overall sales for global fast-food companies.


Emphasizing breakfast will help McDonald's and other fast-food companies retain loyal customers while attracting others. Breakfast is essential for Mcdonald's to address. The fast-food company began selling all-day breakfast in the American market, and as a result, McDonald’s customers continue to buy the product. Given that American consumers increased their breakfast time in 2014 for the fourth time in a row. Thus, it is less of a suggestion than an encouragement to continue making progress. Experts suggest a big win for Mcdonald's to improve offerings for the first meal of the day. Other companies should borrow a leaf from the company and invest more in breakfast.


The fast-food industry is full of challenges in the contemporary world. McDonald's understands these challenges and has continuously operated in several nations across the globe. In the Chinese market, the company should address health and product quality concerns to ensure continued growth. Other companies should learn from McDonald’s failures and strategies. McDonald's continues to introduce new products in the market while keeping its prices regulated. Global fast-food companies should learn to understand consumer needs and develop policies to keep consumers content and protected.


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References:

Steven, Q. A. (2018). Fast food, street food: western fast food’s influence on fast service food in China (Doctoral dissertation, Dissertation, Duke University, Durham).

 

Togan, I. O. (2021). 13 McDonalds. Business Management Case Studies: Pran-RFL, Netflix, McDonalds, Google, Tesco, Apple, COCA-COLA, PSA Group, Mercedes, Tesla, Toyota,

Beximco, KFC, LBC Lao Brewery Company, 205.

 

Zhu, L., Anagondahalli, D., & Zhang, A. (2017). Social media and culture in crisis

communication: McDonald’s and KFC crises management in China. Public Relations

Review, 43(3), 487-492



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