Case Analysis Yum

1- Customer tastes are changing in the fast food industry since consumers of this generation are thinking more of their health and are willing to eat something healthier. This might not be a good thing for McDonalds and for McDonalds to stay profitable they need to start researching in order to find out different solutions to still feel tempting to customers. Currently McDonalds has added foods such as salads and grilled chicken wraps to their menu. In addition to including a healthier alternative McDonalds currently also provides information on their menu regarding how many calories each meal has.

2- Changes in customer tastes and preference are greatly reflected throughout the industry. Competition in the fast food industry is high with every restaurant trying to:

A-Offer a healthier and better product compared to the competition

 B-Keep the shop attractive

C- Market their products effectively.  

3-

Strengths:

A- Strong Location Choice: Access to restaurant is easy (nearly a McDonald’s in every neighborhood)

B- Customer Loyalty: Many of the McDonalds customers come back and are loyal to the brand.

C- Strong Industry links: Such as Happy meal toys which are linked with Disney and Movie promotions.

Weaknesses:  

A- Decrease in sales

B- Increased dissatisfactions from customers which went viral

C- Shares grow slower compared to competitors in the industry.

4- McDonalds could perform some R&D in order to develop a separate strategy for the heavy user segment of the fast food industry. However, I believe McDonalds has done a good job so far and the strategy they have at the moment seems to be working out for them.

5- To remain profitable and increase sales, McDonalds should keep researching and analyzing their competitors to have the lead in the fast food industry, they also should think of creating an "upscale" restaurant environment while also keeping their current fast food environment branches, to compete with restaurants and coffee shops like Pizza Hut, Star bucks and Panera Bread.