McDonalds  and Starbucks Local and Global Strategy

Watch the two videos and post what each company’s strategies are to gain and maintain a global operation. There are many different ways an organization may go about this based on their mission statements.

 

Watching these videos made me come to a realization of the key factor of the company’s international success, which mainly due to their use of franchising model.  It is important to look beyond traditional markets and borders in order to fully exploit a brand’s sales potential.  Crossing borders, both physically and electronically, is becoming increasingly vital for even the smallest businesses to remain competitive.

With MacDonald’s one of its major aims of the organization which is its major success factor is its creation of a standardized set of items that taste the same regardless of the country in which they are found.  It is the application of this strategy, while at the same time maintaining its ability to adapt to certain environmental conditions that are ensuring its success.

The key to Starbucks international success is that many of its products are seasonal or specific to the locality of the store in various countries. Starbucks has managed to embrace diversity effectively as an essential component in its operations.

The marketing mix brand of both McDonalds and Starbucks regards globalization versus internationalization.  By globalization they have developed marketing strategies as though the world is a single entity, marketing standardized products in the same way everywhere like Starbucks coffee and McDonalds fries. By internationalization, they have customized marketing strategies for different regions of the world on the basis of their cultural, regional and national differences.