Analysis of McDonald
This analysis explores McDonald's market structure, demand elasticity, income sensitivity, and competition. It highlights how pricing, consumer behavior, and economic shifts impact the company in the global fast food industry.
Mason Bennett
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Analysis of McDonald's Report
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McDonald's leads the food service sector globally, with its more than 70 million
customers in more than 100 countries. It relies on 35,000 locations and uses a franchise
model to sustain growth globally. The parent company owns 20 percent of the
restaurants, while the remaining share belongs to independent businesses
(McDonald's, 2014).
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What kind of market does the company belong to?
The market of McDonalds's products is perfectly competitive because there are many
rivals, who have equal access to the customers. At the same time, customers have
adequate information about the products offered by all companies in the industry, and
they are free to pick any of the products they see fit.
Prices of the products depend on a business’s strategic positioning in the market. At the
same time, prices are sensitive to any deviations from the market equilibrium position.
For example, if the price of a McDonald's burger increases substantially to be different
from the ordinary price of burgers in a particular country, then consumers will prefer to
buy burgers from the competing brands and shun the McDonald's brand.
McDonald's belongs to the quick service restaurant industry, specializing in the delivery
of easy to grab food menu items.
What is the Price Elasticity of Demand for the goods that the McDonald s
sells?
Exclusively available on IvyPanda
McDonald's leads the food service sector globally, with its more than 70 million
customers in more than 100 countries. It relies on 35,000 locations and uses a franchise
model to sustain growth globally. The parent company owns 20 percent of the
restaurants, while the remaining share belongs to independent businesses
(McDonald's, 2014).
We will write a custom essay on your topic
812writers online
What kind of market does the company belong to?
The market of McDonalds's products is perfectly competitive because there are many
rivals, who have equal access to the customers. At the same time, customers have
adequate information about the products offered by all companies in the industry, and
they are free to pick any of the products they see fit.
Prices of the products depend on a business’s strategic positioning in the market. At the
same time, prices are sensitive to any deviations from the market equilibrium position.
For example, if the price of a McDonald's burger increases substantially to be different
from the ordinary price of burgers in a particular country, then consumers will prefer to
buy burgers from the competing brands and shun the McDonald's brand.
McDonald's belongs to the quick service restaurant industry, specializing in the delivery
of easy to grab food menu items.
What is the Price Elasticity of Demand for the goods that the McDonald s
sells?
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Subject
Economics