ANSOFF MATRIX OF MC DONALDS

To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on firm’s present and potential product and its market. In this matrix it consider ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product combination.

 Lets take an example of Mc Donald to understand the four possible product combination:

McDonald Corporation often uses Ansoff Matrix’s growth strategies, to focus on the firm's present and potential products and markets & customers by considering ways to grow via existing products and new products, and in existing markets and new markets. There are four possible product-market combinations of Ansoff Matrix of Mcdonald's are given. McDonald is often being involved in applying all Ansoff's Matrix four different growth strategies in the different markets round the globe as under:

  

McDonald is one of the most famous brands for providing innovations but even in this ever changing and innovative era it keeps its products same in the same market but this happen for a very short span of time (Even maximum a month). The results of firm's existing resources and capabilities remain secure and the firm increases market share if competitors reach capacity limits.

PRODUCT DEVELOPMENT STRATEGY:-

McDonald’s Corporation has always provided new and new innovations to its customers. It always has provided a handsome level of consumer economic surplus to its customers. McDonald’s always seeks innovation from one market and provided these innovations and new products to the rest of the world. This strategy does have a minimal level of risk which almost always have provided good results to the organization for keeping the strength in its 47 million customers averaged daily existing customers. The Mc donald's growth strategy is the secret of organization's success.  

MARKET DEVELOPMENT:-

As we all know that McDonald's is a Global organization and it has the franchisee FDI system to reach the new global markets of work in its international business. It has more than 31,000 business outlets (franchisees) in 119 countries round the world and it always pursuit the additional market segments on geographical basis. As the firm is expanding into new markets; the market development strategy typically has more risk than a market penetration strategy for McDonald’s but the developments of new markets have been proven significantly successful for McDonald’s core competencies of its experience with a specific market segment.

DIVERSIFICATION:-

Diversification is not the best of the idea for the company because it can’t afford to make new products in the new markets. It’s actually not possible with the franchisee system that McDonald’s adopts. Keeping aside from Franchisee system McDonald has also proved success in this strategy by owning a majority stake in Chipotle Mexican Grill & Pert A Manger and acquiring Donatos Pizza.  McDonald’s adopted both product and market development strategies which was outside the core competencies of the firm. 

	EXISTING PRODUCTS	NEW PRODUCTS
EXISTING MARKET	Market Penetration hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes and desserts. More recently, it has begun to offer salads, wraps and fruit.	Product Development Innovation in all products, Introduction of new products (Brands)
NEW MARKET	Market Development  Uruguay, Venezuela, Yemen	Diversification Pret A Manager, Chipotle Mexican Grill