McDonald's is the largest chain of fast food restaurant that serves around 68 million customers daily. The company operates in 119 countries with over 36,000 branches. For the entry in every market, McDonald chooses the strategy of franchising as it has several benefits.
There are several other strategies to enter a new market but because of the benefits of franchising, it is preferred by most of the multinational companies. The main aim of selecting this strategy is that it reduces the risk of franchising business failure. Moreover, the success of the business can easily be done by comparing it to other franchises. The company is famous for its burgers and fries and caters similar products all over the world. Franchising strategy allows the company to provide the established product in the market without market testing. In addition to it, the promotional activities are conducted by the franchises owners which relax the main company. A set of rules is provided by the headquarters which is followed by all the franchises to maintain the quality and standard of the company .
The strategy of franchising is very beneficial for McDonalds as a huge investment is not required to expand the business. The strategy is used by most of the fast food and other restaurants because it is easiest and least risky way to increase the market share of the company. The franchises also help the company in catering the products that are admired in the country in which it operates. For example, there is acceptability of pork, therefore, a product with pork in them are avoided in such countries. Such things help McDonald's in growing in all the markets where it operates .
Works Cited
Khan, Mahmood A. Restaurant Franchising: Concepts, Regulations and Practices. Boca Raton: CRC Press, 2014. Print.
