This document is an excerpt from a VOA special English economics report written by Mario Ritter on 10 January 2008.
This text deals with the competition between McDonald and Starbucks who are themultinational. Indeed they are implant all over the world. Starbucks is specializes in coffee and McDonald in fast food but they try to recover market share in the coffee segment which is not part oftheir core business but they see a potential market.
I will therefore present this document in 2 parts, the facts and the figures and the consequences.
McDonald is a fast-food company who areimplant all over the world, they decided to attack the coffee market and in all these restaurants offer quality coffee. The Multinational Company expects to add 1 billon dollars in his sales. But there is abig competitor in this business which is Starbucks coffee. But Starbucks is the leader and, they have many stores (almost 10 000), especially in the U.S. or they can be found at every street corner.The turnover (sales) of McDonald grows exponentially for many years with about $ 22 billion in 2006. Despite the strong presence and reputation of Starbucks coffee, McDonald's wants to take newcustomers and thus take market share. However there are drawbacks to this new focus, but there are also exciting opportunities for McDonald's
McDonald consumers are not really happy with the change thatmay result in their way of eating. Indeed they have their habits and they fear hurting the operation of the McDonald's they know and they also fear it will slow the processing of orders and that theterm "fast food» is no longer true respect. Indeed, some experts have accepted that this could affect McDonald service. However, Starbucks in recent years suffered a slowdown in growth because theprices of its products are not particularly attractive enough for U.S. consumer, that’s why they decided to increase their global presence. Something that can also go for McDonald and that many...
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