McDonald’s Adventure in Hotel Industry

McDonald’s restaurants are market leader in its industry and well known for their cleanliness, hospitality, and quality. Decades ago, McDonald’s started its journey in this industry and earned respect and success. In order to analyze the strategies of McDonald’s around its hoteling adventure, a case study titled “McDonald’s Adventure in Hotel Industry” has been reviewed in this paper.  In recent years the profitability of the restaurant has halted mainly because of maturity in the market. It is suggested within the company that diversification should be considered and hotel industry is better option as it matches with the restaurant business and its expertise. In this context, McDonald’s hotel in Switzerland has been analyzed and it is found that it would be better option but it should be launched with different perspective. The positioning of the hotel is middle class and it is difficult for it to be choice of affluent segment of the society which are the most profitable segment of the market. So, the target market of hotel has been airlines crew members, layovers, people traveling on bus, individual travelers,

McDonald’s Adventure in Hotel Industry Name Affiliation McDonald’s Adventure in Hotel Industry Executive Summary McDonald’s restaurants are market leader in its industry and well known for their cleanliness, hospitality, and quality. Decades ago, McDonald’s started its journey in this industry and earned respect and success. In order to analyze the strategies of McDonald’s around its hoteling adventure, a case study titled “McDonald’s Adventure in Hotel Industry” has been reviewed in this paper. In recent years the profitability of the restaurant has halted mainly because of maturity in the market. It is suggested within the company that diversification should be considered and hotel industry is better option as it matches with the restaurant business and its expertise. In this context, McDonald’s hotel in Switzerland has been analyzed and it is found that it would be better option but it should be launched with different perspective. The positioning of the hotel is middle class and it is difficult for it to be choice of affluent segment of the society which are the most profitable segment of the market. So, the target market of hotel has been airlines crew members, layovers, people traveling on bus, individual travelers, and segments like these. Keeping in view the responses of upper class who visited the hotel it is found that it needs to re-orient its strategy fundamentally. With the present hotel model it would be highly risky for the company to expand and launch the hotels throughout the world. In the paper it is found that ambitions of McDonald’s in hotel industry are not wasteful completely and it is nice to diversify especially when the parent business is finding it hard to grow. Hotel industry for a restaurant business is understandable because strategies of both business can be aligned but there needs to work fundamentally as the perception of McDonald’s is as market leader in the industry and business associated with should look like market leader, otherwise new diversification would not be beneficial for the overall goal of growth. Question No. 3: McDonald’s hotel has offered its services in the hotel industry with an aim to diversify its business especially when it faced mature market in the United States which is the biggest market of McDonald’s restaurants. The brand positioning of the hotel was to attract middle class segment of the market. The brand positioning of hotel is set by keeping in view the McDonald’s restaurants’ positioning which are renowned for the hospitality and cleanliness. It was four-star hotel which means it is not for the affluent segment those include heads of the organizations or those who demands premium in any hotel. If the brand positioning of McDonald’s hotel is analyzed then it is found that this hotel positioned those who check in or check out from the Zurich airport. Moreover, the airlines crew and layovers can also enjoy the hospitality of the hotel and travelers who travel through bus within Europe can also enjoy the hotel accommodation. Another segment for which the hotel is positioned includes business travelers and frequent individual travelers. These segments depict that the hotel has been made for providing minimum needs of the said segments while the competitiveness of the hotel has been ensures simultaneously. The hotel is not an exceptionally great that everyone dream to visit it but it is a middle level hotel as the expressions of some persons who spent one night in the hotel told that they were not impressed the way hotel welcomed and provided accommodation to them. These things denote that McDonald’s hotel is another hotel among competitive market of hotel in general and there are other competitors as well which had better or at least similar facilities than provided by McDonald’s hotel. McDonald’s should target profitable segment in order to be successful in this business as well. Question no. 4: McDonald’s hotel model should be studied first before to suggest any opinion to adopt the same model in rest of the world. So far as the endeavor in the hotel industry by McDonald’s is concerned it is mainly the result of efforts of Urs Hammer as he belongs to a notable Swiss hotelier family. Therefore, hotels in Switzerland should be first looked with this perspective. Moreover, the hotel by McDonald’s has not put deep impact on the industry as one might expect. It is one of the many those hotels which are already competing with each other. It is true that big brand name of McDonald’s restaurant might be its strength but McDonald’s restaurant is market leader in its industry and the idea of entering into hotel industry is to support mature business outlook of McDonald’s restaurants. Therefore, hotels should support the restaurant arm of the business strategically but the success of the McDonald’s hotel in Switzerland has not been exceptional. In this context, it is not good or feasible to suggest that McDonald’s hotel model can be expanded and launched in other parts of the world like the chains of the restaurants. The hotel model needs to be furnished before going to practically apply it and in doing so McDonald’s should practice its own example. McDonald’s restaurant initiated decades ago based on a competitive advantage and that competitive advantage of hospitality, cleanliness, and quality caused extraordinary success later. Similar strategy should be devised by McDonald’s hotels to first identify a competitive advantage which is substantially different from other hotels and then around that competitive advantage strategic planning should be proceeded. In other words, McDonald’s should start from the very beginning like it did in restaurant business then it should take step expand and launch the business throughout the world. Conclusion: It is concluded that McDonald’s efforts to enter into hotel industry is understandable especially in the context of maturity in restaurant industry. The McDonald’s hotel in Switzerland has been analyzed in the paper and it is found that this effort has not been exceptionally successful like the success of McDonald’s restaurants. The hotel in Switzerland was four-star one and it targeted those segments of the market that do not very much care of quality. The idea to attract customers was backed by cleanliness of the hotels which is also a known attribute of McDonald’s restaurants. However, it is found that it would be risky for the company to expand its hoteling business and planning to launch hotel chain throughout the world needs to be revised if there is any such planning under consideration. It is recommended that McDonald’s should build competitive advantage first, and then it should step into new business of hoteling, otherwise, it would not be able to put memorable impact.

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Paper's Detail

Category Consumer Behavior
Paper Type APA
Reference Type Admission Essay
Words 1100

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