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Unsuccessful product innovation

A lot of tries have recently been made by McDonald’s to invent new products to fit the changing consumer trends. But it seems like every new attempt falls to the ground after a while, and they return to their core product; the hamburger. There have been no larger product innovation since the McNugget was added to the core product portfolio. This is a significant weakness, since the ability to innovate is crucial in a changing market with changing consumer preferences.

Bad image at smaller suppliers and consumers

McDonald’s have made some bad moves around the world when it comes to both suppliers and employees. They have abused their power, in among other UK. In UK market research have shown that 35 percent of the population ranks McDonalds as treating their employees, suppliers, customers or environment as being poor or very poor. This gives the McDonald brand an undisputed top place at the index over unethical companies.

Furthermore, since McDonalds is the biggest company in the industry, then it is also the first company one are to think of when the term “fast food” is mentioned. Both for good and for worse. And lately especially for worse with all the focus on unhealthy consumer behaviour and obesity in general, then the McDonald’s brand have had to take a lot of the heat for the whole industry.

Inconsistency in product-advertising

Still suffering from the first wave of obesity, trying to figure out whether or not they should brand themselves as having healthy meals for the customers, then McDonalds are having some difficulties finding their place in the industry. It seems like they are trying to take the brand in two different directions. One is the normal direction of the company, the same they have had through the last many decades. The other one is the healthy brand direction, emerged from the whole obesity focus.

By aiming for two goals at once, they are unsure which way to go, and could end up hitting nothing at all.