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Friday, September 13, 2019

McDonald’s VS Starbucks analysis


Competition is Fierce

McDonald’s is an American company in the fast food service industry that was founded in 1940. Its current headquarters are in Oak Brook, Illinois. The company owns and operates a chain of restaurants in addition to 30,000 franchises located in 199 countries found all over the globe and serving millions of customers on a daily basis (Peng, 2013). McDonald's menu comprises of hamburgers, cheeseburgers and French fries in addition to chicken products and soft drinks, desserts, wraps, milkshakes and foods for breakfast. The company, however, makes the effort to produce their menu items locally and at a set standard to maintain quality and increase the products relevancy to the local community. The quality of McDonald’s services is also enhanced by the use of e-commerce through the utilization of technological developments such as the McDonald’s website for marketing products (Dorfman, 2014). Secondly, the use of online service for placing orders, delivery, and advertising on Facebook and Instagram and the automation of its business activities. McDonald's also uses menu display on a television screen and free Wi-Fi to customers as a rebrand of its business operations and increase its competitive advantage.
Starbucks is also a company in the food industry offering coffee and running various coffee shops in the US and around the world (Gilbert, 2008). Through E-commerce, Starbucks pioneered the digitization of the food service industry through the use of pre-loaded loyalty card and order-ahead app that has helped revitalize the in-store experience and enable easy shipping of goods up to the customers’ houses (Lindner, 2017). However, Starbuck recently closed down its online store as a move to simplify its sales. This endeavor leaves Starbucks dependent on direct sales from the stores.
From this analysis, McDonald's sales and business operations are fully automated in contrast to Starbucks business operations. In my view thus, considering factors such as competition, customer service, and diversification of product helps determine effective use of e-commerce technology. In this regard, McDonald's has effectively utilized the e-commerce technologies better than Starbucks.
  



References
Dorfman, J. H. (2014) Economics and Management of the Food Industry. Routledge. 
Gilbert, S. (2008) The Story of Starbucks. The Creative Company.
Lindner, M. Starbucks will shutter its e‑commerce site to focus on its mobile app and stores.        Digital Commerce 360. Retrieved from         https://www.digitalcommerce360.com/2017/08/31/starbucks-shutter-e-commerce-site-            focus-mobile-app-stores/
Peng, M. W. (2013) Global Strategy. Cengage Learning.

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