McDonald International Strategy - Squander Brand Equity

McDonald International Strategy - Squander Brand Equity -...

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McDonald’s International Strategy: Squander Brand Equity? McDonalds has expanded to international markets in the face of increasing regulations in the United States and domestic market saturation. They initially entered international markets by leveraging standardized product offerings, clean and bright environments, and American brand equity. However, recent years have seen McDonalds adapt to local regions by remodeling its retail space while changing the product line to appeal to local tastes. While the strategy has paid off well in the short term and McDonalds has realized that they must adapt to each country they enter, their tactics of both catering to local tastes and changing the restaurant’s design and appeal is diluting brand equity. This will have disastrous consequences in the long term. “The Golden Arches” have become synonymous with not just fast food but also American culture in foreign countries (sad, but true). By adapting the food offerings to local tastes, McDonald’s risks losing its connection with American culture. According to Business Week:
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This note was uploaded on 12/24/2011 for the course BUSINESS 101 taught by Professor Thanh during the Spring '11 term at RMIT Vietnam.

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