McDonald's has been successful in China by employing several low-cost strategies, including compressing costs through global supply chains, hedging currency exchange rates, introducing efficient cooking systems, and opening small satellite locations. These approaches have allowed McDonald's to offer low prices that attract customers across different age groups and establish an overwhelming market share in China.
3. McDonald's low-price strategy
McDonald's half price weekdays do.As a result
McDonald's spread an age bracket and established
an overwhelming share. established an
overwhelming share.
4. Four systems can price down
1.Compress of cost
2.Exchange hedge
3.New cooking system
4.Satellite shop
5. Compress of cost
Mc.Donald's open chain store around the world.So
Mc.Donald's has the road of the raw material
procurement all over the world. Therefore, McDonald
can stock cheaply.
Mc.Donald's introduce "GPS(Global purchasing
system)".GPS is convenience.
6. Exchange hedge
McDonald is having dealings over about 300 million
dollars a year. Only dollar origin-rate is different for
one yuan and there is a difference big as for the
earnings side if becoming the enormous amount only
of this. However, the exchange changes every day.
Then, the hedge does McDonald the risk by doing
the forward exchange contract.
7. New cooking system
McDonald's made and had put it before.However,
after the order is received, is made now.McDonald's
introduce system named "Made for you".This system
enabled save time.
8. Satellite shop
Satellite shop can open store 10 square meters.So
McDonald's open store some places.To cut down
personnel expenses, McDonald's introduce franchise
system.
