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    BCG Matrix of McDonal1

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    Zunaira Javed
    McDonald's business segments can be categorized using the BCG matrix as follows: - Europe segment is a star with high market share in a high growth industry. - America segment is a cash cow with high market share in a low growth industry. - APMEA segment is a question mark with low market share in a high growth industry. - McDonald's has no dog segments with low market share in low growth industries. According to the Ansoff matrix, McDonald's growth strategies include market penetration through increased frequency and amount of purchases, product development of new menu items, market development by expanding to new geographical regions, and avoiding diversification into new products and markets outside its core competencies.

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    BCG Matrix of McDonal1

    Uploaded by

    Zunaira Javed
    1K views5 pages
    McDonald's business segments can be categorized using the BCG matrix as follows: - Europe segment is a star with high market share in a high growth industry. - America segment is a cash cow with high market share in a low growth industry. - APMEA segment is a question mark with low market share in a high growth industry. - McDonald's has no dog segments with low market share in low growth industries. According to the Ansoff matrix, McDonald's growth strategies include market penetration through increased frequency and amount of purchases, product development of new menu items, market development by expanding to new geographical regions, and avoiding diversification into new products and markets outside its core competencies.

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    McDonald's business segments can be categorized using the BCG matrix as follows: - Europe segment is a star with high market share in a high growth industry. - America segment is a cash cow with high market share in a low growth industry. - APMEA segment is a question mark with low market share in a high growth industry. - McDonald's has no dog segments with low market share in low growth industries. According to the Ansoff matrix, McDonald's growth strategies include market penetration through increased frequency and amount of purchases, product development of new menu items, market development by expanding to new geographical regions, and avoiding diversification into new products and markets outside its core competencies.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views5 pages

    BCG Matrix of McDonal1

    Uploaded by

    Zunaira Javed
    McDonald's business segments can be categorized using the BCG matrix as follows: - Europe segment is a star with high market share in a high growth industry. - America segment is a cash cow with high market share in a low growth industry. - APMEA segment is a question mark with low market share in a high growth industry. - McDonald's has no dog segments with low market share in low growth industries. According to the Ansoff matrix, McDonald's growth strategies include market penetration through increased frequency and amount of purchases, product development of new menu items, market development by expanding to new geographical regions, and avoiding diversification into new products and markets outside its core competencies.

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    At a glance
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    The key takeaways are about different categories in the BCG matrix (Stars, Cash Cows, Question Marks, Dogs) and which McDonald's geographical segments fall under each category. It also discusses McDonald's strategies for product market expansion according to the Ansoff matrix.

    The different categories in the BCG matrix are Stars, Cash Cows, Question Marks, and Dogs. The Europe segment is considered a Star, the America segment a Cash Cow, and the APMEA segment a Question Mark. No segment falls under Dogs.

    The four strategies according to the Ansoff matrix are Market Penetration, Product Development, Market Development, and Diversification. Details are provided about how McDonald's uses Market Penetration, Product Development and Market Development strategies.

    BCG Matrix of McDonald’s

    Stars:
    According to BCG framework stars are those segments which compete and operate in high sales
    growth industry and have high market share. If the McDonald chain of restaurant is evaluated
    in terms of geographical segment its Europe segment will come into the category of stars. In
    2015 and 2016 Europe segment has generated the highest revenue for the corporation.

    Cash Cow:
    Cash cows are those segments which provide financial stability in the organization. Such
    segments compete in low sales growth industry and have high market share. McDonald
    America segment reported 31% share of revenue, in corporation annual sales. However,
    McDonald America segment can be included in the cash cow’s category.

    Question Mark:
    APMEA segment of McDonald fall into the category of Question mark. Such segment compete
    in high growth industry and have low market share. In Asian pacific countries, industry sales
    growing potential is very high but unfortunately McDonald is not taking advantage of this
    opportunity as; its competitor yum brands. McDonald has not been responding to the
    competitor strategy very well.

    Dogs:
    Fortunately none of McDonald segment fall in to the category of dogs. Dogs are those segments
    of company which are competing in low sales growth industry and have low market share. Such
    segments are not good for the financial health of company or corporations. Liquidation and
    retrenchment are the best suited strategies for dog segments.

    Reasons:
    Maintain Consistency
    Establish a brand presence
    Take risks
    Adapt to customer’s changing tastes.
    Perfect the art of the cross-sell.
    Innovation

    McDonald’s Product market Expansion Grid ( Ansoff Matrix)


    Market Penetration:
    In the fast food market, McDonald's could increase frequency of purchase through an
    advertising campaign that gave consumers a reason to go there more often; they could increase
    amount per purchase occasion through "value meals;" they could use both of these marketing
    actions to gain customers from other fast food restaurants; finally, they could use these and
    other marketing actions to get consumers in the market who don't eat at fast food places to do
    so.

    Product Development:
    McDonald’s Corporation has always provided new and new innovations to its customers.
    McDonald’s always seeks innovation from one market and provided these innovations and new
    products to the rest of the world. This strategy does have a minimal level of risk which almost
    always have provided good results to the organization for keeping the strength in its 47 million
    customers averaged daily existing customers.

    Market Development:
    As we all know that McDonald's is a Global organization and it has the franchisee FDI system to
    reach the new global markets of work in its international business. It has more than 31,000
    business outlets (franchisees) in 119 countries round the world and it always pursuit the
    additional market segments on geographical basis.

    Diversification:
    Diversification is not the best of the idea for the company because it can’t afford to make new
    products in the new markets. It’s actually not possible with the franchisee system that
    McDonald’s adopts. McDonald’s adopted both product and market development strategies
    which was outside the core competencies of the firm.
    University of Education
    Bank road campus, Lahore

    Program: BBA (Hons)


    Session: 2016-2020
    Semester: IV
    Section: B (Eve)
    Subject: Principals of Marketing
    Presented to: Mam Arshia Azhar
    Presented by: Mariam Javed

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