Case Scenario: McDonald's in Japan: Rebuilding the Brand
In 1971, McDonald's opened its first store in Japan. Since then, McDonald's Japan has grown to become the largest food service provider in the country. With around 3,800 restaurants operating and a 20% market share, the company controls a major chunk of the fast food industry. But trouble came knocking at its door in 2002 when McDonald's Japan plunged into losses for the first time in 29 years. The company drove a nail in its coffin by instigating a price war in the fast food industry, with the result that the entire industry suffered huge losses. At this juncture, Eikoh Harada was appointed as the CEO of McDonald's Japan. Under his leadership, the company took up various initiatives to rebuild its brand image that primarily revolved around revamping the menu and remodeling the company stores. These initiatives helped in enhancing the brand's value to the customers, resulting in a turnaround of fortunes for the company.
Guide Questions:
Based on the given case above, Eikoh Harada, the CEO of McDonald's Holdings Company (Japan) Ltd.(2004) focused on rebuilding the company's brand image specifically by improving its menu and redesigning its stores. In your own words, how important is it to focus on these matters to win our customers? Is this strategy enough to sustain the growth of a company?