1. Introduction Macdonald's is one of the leading, if not, the top fast food franchises available globally in over a hundred countries, branching out to more than 35,000 branches, and employs an astounding 1.9 million people to keep the franchise operational to this day. The company Macdonald's was first founded by Dick and Maurice Macdonald in 1948, which was then purchased by genius franchise agent, Ray Kroc (Dick McDonald, 2014). The nature of its business is primarily centralized around providing top grade service to customers and staying faithful to its advertised food quality and (Aboutmcdonalds.com, 2014). he company is currently being run by Don Thompson who received the role from previous CEO, Jim Skinner. Its first …show more content…
244) refers to the potential negative effects a new competitor of the same trade has on an existing business, namely potential decrease in earnings and in a lot of cases, new entrants can put existing businesses out of business if cards are played right, that even the mightyMacdonald's which has long dominated the industry market will fall to second or worse. As mentioned before, Macdonald's has been the dominating player in the market, conquering namely the breakfast time of the day. However, Subway, which has kept a rather low profile towards the Macdonald's prime business hour of the day, has since stepped up its game and challenges the fast food giant and introduced numerous breakfast offers which undermines the giant's value meals and has since been pulling customers not just from the breakfast hour, but all meals hours.This is a classic example of how a new entrant with the right ideas and resources in the industry can come to challenge an existing business giant alpha and succeed in doing it (Crain's Chicago Business, …show more content…
236). In which Macdonald's will buy out the suppliers to secure control of cost prices, to make sure that prices of supplies will not fluctuate and cause burgers and nuggets to shrink and grow in price with the reason being that all because suppliers got greedy. This strategy will therefore allow Macdonald's to have certainty in their product quality and quantity in the future, and customer loyalty in the long