As a brand for analysis of the competition, McDonald’s was selected, which is the world’s most popular fast-food chain. However, it has many competitors, such as KFC, Burger King, Dunking Donuts, Subway, and others. Using the Concentric Circles of Competition tool, it is possible to identify aspects of McDonald’s competition with other fast-food establishments. Despite the numerous challenges in the market and the arrival of new players, McDonald’s restaurants remain in trend.
An important factor determining the levels of competition is whether it will be direct or indirect between players in the market. According to Tier (2017), “Direct competitors such as Burger King and Hardee’s. And even more indirect competitors competing for the fast-food dollar: Taco Bell, Pizza Hut, Domino’s, Kentucky Fried Chicken…” (p. 24). The first circle of competition for McDonald’s is in direct competition with fast food brands such as Burger King and KFC, whose menus are the same. The second form of competition is local restaurant chains with similar dishes. According to the second concentric circle, the competition is less direct, and competitors of McDonald’s here will be such restaurants as Pizza Hut, whose menus are different. The second form of competition in this circle is food delivery services. The third concentric circle implies Even Less Direct Competition. In the case of McDonald’s, it is a competition with stores that sell ingredients similar to those used in food from McDonald’s restaurants and other types of fast-food that can be bought in supermarkets and shopping centers.
The fourth and fifth circles of concentric circles represent very indirect and completely indirect competition. Competition of McDonald’s in the fourth circle will occur with other services that provide people with food. The second form of this circle is the sphere of entertainment. There can be various fairs, holidays and other events in which there will be food. In the fifth circle, the competition will occur in the phenomena occurring at some time when McDonald’s competition with other fast-food restaurants takes place in particular conditions, for example, coronavirus and natural disasters. I will apply PR strategy to fight these competitions in each circle of Concentric Circles of Competition. Development of the brand identity, improvement of its logo, restaurant interiors play an essential role in successful competition.
In conclusion it might be important to emphasize, that the competition among brands is on many stages and McDonald’s restaurants have a significant experience in achievement high results in that.
Reference
Tier, M. (2017). How to spot the next starbucks, whole foods, walmart, or mcdonald’s before its shares explode. St. Martin’s Publishing Group.