McDonald's Takes on a Weakened Starbucks

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McDonald's Takes on a Weakened Starbucks

Introduction

The new era has brought new endowments along with it, in numerous and rather varying domains. Amongst them, the most effected and revolutionized arena is that of the business and trade. The world has witness significant alteration in the processes and procedures of this domain, since the primitive times to the current era. The major players in bringing in those alterations in this arena are the technology and scientific advancements. These technological and scientific advancements have played a pivotal role in broadening the horizons of the inhabitants of the world. This is the main reason that in today's times the companies and the brand, are giving utmost attention to the needs, demands, desires and the consumer psyche of their respective target audience. This current era, where provides the manufacturers with ample possibilities on cashing on to the desires and needs of the consumers, at the same time it does not provide them with a provision to lose on any potential sphere that can not only attract the consumers, but also win a competitive edge over their competition. Somewhat similar was the case with MC Donald's and Star Bucks. Both of them over time endeavoured to increase their operations and processes, in order to capitalize on the varying needs of the consumers, as well as a lucrative market.

Q1) Three Reasons Why McDonald's Is Planning To Launch Coffee Bars in Its Restaurants

The primary reasons for MC Donald to go off the track from its usual offerings, and entailments to render to its target audience and the respective consumers, with some major and drastic fresh additions to their offerings, base on three grounds. First, with the addition of coffee bars in their offerings, MC eloquently and openly wants to tap on one of the major and excessively lucrative markets, which is of the coffee lovers. Coffee is believed not only to be an integral part of the breakfast menu for most of the Americans, but also amongst the most demanded beverages in the fast food restaurants. By entering in to this market, McDonald's has a substantial opportunity of generating satisfactory revenues, and even winning a significant market share.

Secondly, this is believed to be the best potential time for McDonald's to enter this market of coffee (bars), when Star Bucks, the master of coffee offerings is facing a tough time itself. With its operations going down a little, McDonald's has the best opportunity to try its hand in the same arena and consolidate its foothold. With the sight dwindling condition of Star Bucks, McDonald's has a lucrative chance of gaining the attentions, as well as successfully targeting the coffee drinkers and lovers, by providing to them quality oriented coffee products (MacArthur, 2006).

The third prime reason for Mc Donald's to plan on launching coffee bars in its restaurants, revolves around besides attracting the general coffee lovers and drinkers, also to tap on the market share of star bucks itself. As discussed ...