Mc café coffee restaurant is one of the subsidiaries of McDonald’s business ventures that specializes in offering fast foods globally. Mc Donald’s has gained international recognition on the quality of its products as well as the prices of its goods (Love, 2008). The good quality of its products, as well as the affordable prices has tended to attract more customers globally. This has created a large customer base for the products of McDonald’s. The creation of a large customer base has massively increased the rates of consumption of the products offered by the business. This has ensured a competitive advantage of this business over other business ventures offering the same goods and services to their customers. This has ensured that the products compete favorably in the competitive world markets, thus ensuring success. McCafe was founded in the year 1993 in Melbourne, Australia (Love, 2008). This is one of the properties owned by McDonalds. Founded by Dick and McDonald’s, McCafe is mainly specialized in coffee as its major product, as well as drinks. The coffee offered by this business corporation is remarkably known to be of very high quality compared to others in the market.
This has ensured that the products sell well in the international markets leading to accruement of profits to the corporation in compounding manner. Other than in the United States of America, McCafe has opened several branches in any parts of the world. Some of the countries where the products have been established include Costa Rica, Paraguay and Bulgaria (Love, 2008). McCafe opened a branch in Paraguay in the year 2007 while that in Bulgaria was opened in the year 2006. The constituent in Costa Rica was opened in the year 2004. However, in the United States, the first constituent of McDonalds corporations, McCafe, was opened in Illinois in the year 2001. This was after 300 such constituents had been opened in several other parts of the world. However, despite the fact that the opening of Mc Donald’s constituent restaurant came a bit late, currently the products have saturated the commercial atmosphere in the United States.
It is an undeniable fact that it takes huge risks for any business to stay in the competitive markets. However, the success of any business venture depends on the competitive nature of such businesses (Tan et al, 2010). In order to maintain the status of au business venture, there is need to employ hard work as well as several adaptive strategies. The success of any business venture depends on the strategies used by the business. These strategies are essential in ensuring that the business performs well in the competitive commercial environment (Love, 2008). A number of these strategies involve the direct influence of the business to the other stakeholder. Some of the strategies to employ in order to ensure that a business maintains its position in the competitive environment include market research, pricing and quality of goods. In addition, there is need to maintain good relations with the potential as well as prospective customers. In the event that any business venture takes concern of the above strategies, such a business is bound to realize success in its operations.
The issue of market research is of crucial importance in ensuring the success of any business venture. Many businesses always collapse due to failure to observe the need for effective market research (Tan et al, 2010). Such businesses always have the notion that once they come up with an idea, develop the idea and come up with a product, then that is the final. This is based on the notion that once a product reaches the market, it will automatically get the customers. This is ill informed of any business serious in marking a mark in the commercial realm. McCafe has succeeded in the competitive world markets through conducting market-based research for its products. The business corporation conducted effective research to determine how to satisfy the escalating and dynamic tastes of the customers. This was done in order to come up with products that meet the demands of the customers (Tan et al, 2010).
They also conducted several research on the effective location to establish their businesses this was crucial in ensuring ease of access to the products by the customers. As such, they positioned the business in a strategic place, with ample space for parking as well as playground for entertaining children as they take the coffee products offered by the restaurant. Other than the location, the organization conducted thorough research on the quality of goods to compete favorably with the ones produced by their competitors. This has made McCafe produce high quality coffee products that are low in calories, thereby making the clients to develop interest solely for the coffee none other than from McCafe restaurants (Love, 2008). This has contributed towards the success of the business as it has led to expansion of customer base, thus creating more profits.
Business ventures always require thorough market research before the product is taken to the market. This is significant in determining and establishing adaptive solutions for dealing with the challenges that the product may face in the market. This is quite essential in ensuring the success of such businesses. The market research should be done in order for the business to fair on well in the competitive environment (Tan et al, 2010). The research should touch on a number of areas. These include the customers, position and challenges that may face the products. In terms of customers, the market research should focus on the fulfillment of their needs. This may involve getting feedback from the customers concerning the products they consume (Mattern, 2011). If there may be any modification that should be made to ensure maximum customer satisfaction, then it would be known using effective market research. The position or location of the business is also crucial to business success. Proper position of the business will ensure that the customers access the products with relative ease. As such, the rates of sales will increase tremendously leading to more benefits.
Another strategy employed by business ventures to ensure their continued survival in the commercial environment is through maintaining good relationship with the customers. The success of any business venture depends on the nature of the relationship that such a business has with its customers (Love, 2008). Businesses that treat their customers with ultimate respect are bound to succeed. Customer satisfaction is of paramount importance. Businesses need to ensure that they do all that is necessary to ensure that the active, potential, as well as prospective customers are well taken care of. This functions in such a way that it maintains the active and potential customers of the business. In addition, it acts to expand the customer base by attracting more customers to the products offered.
Maintaining good customer relations is essential in creating preference for the organization and its products, thereby leading to increased consumption of such products (Mattern, 2011). It is of critical importance to note that McCafe have widely used this strategy to ensure that they maintain their position in the competitive markets. McCafe has discovered the need to listen to the customer demands and requirements (Tan et al, 2010). McCafe has recognized that customers are always pleased with quality products. As such, they have ensured that the quality of their products remain high to attract more customers (Love, 2008). This has offered them a competitive advantage over their rivals, thus ensuring success.
In addition, McCafe has realized the need to train their staff on regular basis. This is in the interest of meeting the dynamic customer demands. As such, highly trained café staffs serve the customers in a stylish manner only practiced by McCafe (Mattern, 2011). This has ensured that the customers interest are met properly leading to maintenance of the customers. McCafe also explores the strategy of customer satisfaction by offering additional services to the customers (Tan et al, 2010). They have developed a strategy whereby young female families aged between 25 to 29 years can meet their friends and have discussions with them as they take the high quality tea offered. In addition, they also have in place several areas where children can have fun and entertainment (Mattern, 2011). This is called value addition in terms of meeting the customer needs. As such, the business develops a strong customer base leading to competitive advantage over the competitors.
Pricing is another strategy that a business may employ to ensure that it continues surviving in the dynamic world markets. Pricing should be done in a more appropriate manner that ensures that the customers are not exploited and profit generation is not compromised (Love, 2008). The success of this majorly depends on the outcomes of the market research. Good and affordable prices attract more customers. This leads to expansion of the customer base, as well as maintaining the original customers. This has a direct influence in the rate of consumption of the goods offered. Good prices attract more customers thereby increasing the rate of purchase of such products offered by the business. This leads to creation of more profits, thereby giving such businesses a competitive edge over their rivals in the competitive world markets.
Through the in-depth and comprehensive market research that McCafe has been conducting, they have come up with adaptive prices of their products. Even though the high quality of their coffee is guaranteed, they still offer cheap and affordable prices to their clients. This has worked to ensure maintenance of the customers, as well as expansion of the business. This follows that customers prefer goods of high quality with affordable prices. As such, McCafe has ensured that it continues meeting the needs of its customers and managing their prices (Love, 2008). This has been quite essential in ensuring that the McDonald’s corporation still stays profitable in the global markets.
The quality of goods is another strategy that business organizations may employ to ensure survival in the business realm. The quality of any good determines the fate of the same good in the market (Mattern, 2011). Goods of low quality may tend to lag behind in terms of purchase. However, high quality goods always tend to attract several customers. This leads to increased rates of consumption of such goods if the prices are pocket friendly. This is one of the strategies employed by McCafe to ensure continued survival in the competitive world markets is by ensuring that they offer quality products to the customers (Tan et al, 2010). There is no customer who cherishes or delights in purchasing goods of low quality no matter their prices.
Everybody wants goods with high quality, although price is also a factor. Since McCafe had conducted several researches on the needs of customers, they knew exactly the nature of products on high demand by the customers (Tan et al, 2010). As such, they developed products with low calories, thus eliminating the possibility of weight gains by the customers. As such, the customers developed interest and preference for their products, thereby leading to increased sales. This ensured that McDonald’s continue leading as the most preferred restaurants, thereby gaining a competitive edge amongst its rivals (Mattern, 2011).
However, it is prudent to recognize the fact that other companies are also in the market, offering the same products like McCafe. These companies use different strategies to ensure they also thrive in the global markets (Tan et al, 2010). One of these rival companies to McCafe is the company by the name Wendy’s and Tim Horton’s. These companies have remained rivals of McCafe for quite a long time. However, the strategies that they employ in selling their products are quite different. The two companies have devised an integrative method of approach to the world markets. In this strategy, the two companies have created a room where they can co-exist as they deliver services and goods to their clients (Mattern, 2011). This has involved two different companies joining to offer collective services to their clients, thus making them gain profits. This follows that the companies may get customers from the two different segments with regards to consumption of either coffee or tea.
On the contrary, McDonald’s operate as an umbrella corporation where different segments fall under the overall roof of McDonald’s. This means that all the constituent restaurants fall under one major corporation namely McDonald’s (Tan et al, 2010). As such, the profits gained are solely directed to one company, making the company maintain the leading position in the world markets. In addition, McCafe employed a different strategy compared to its competitors when it came to pricing. McCafe produced high quality coffee and other products at relatively low prices (Love, 2008). This made customers develop interest to its products, thus leading to creation of more profits. However, its competitors maintained their high prices in selling their products. This ensured that McCafe coffee restaurant enjoy a competitive edge over its competitors, thus leading amongst the restaurant businesses.
In summary, it is in order to highlight that McCafe has very strong strategies in place to ensure that they continue shining in the competitive world markets. They offer very high quality products to their customers, making the customers to like the products. They also relate well with their customers, thereby maintaining trust alongside ensuring satisfaction of both the customers as well as fulfilling the mission of the corporation. However, it is in order for the corporation to continue conducting more research on other goods to offer to the customers. They should take into consideration the need to diversify their business, as well as expand it to accommodate a number of services to the customers. This may include establishment of swimming pools where customers can swim at affordable prices. They should also device methods through which some of their products may be directly supplied to the customers at their residences. This is going to add more value, thus leading to expansion of customer base earning more profits.
Love, John F. (2008). Mcdonald’s: Behind the Arches. Paw Prints.
Mattern, J. (2011). Ray Kroc: McDonald’s restaurants builder. Edina, Minn: ABDO Pub.
Tan, C. J. R., Lee, H. K. O., & Ho, Z.-W. S. (2010). Mcdonald’s Brand Extension into Mccafé: A Singapore Case Study. Saarbrücken: LAP LAMBERT Academic Publishing.
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