Question

Does pricing strategy of McDonland's considerd as international strategy ?

explain in detailed the pricing strategy ?

Answer 1

Yes, Mac Donald’s Price strategy is truly an international strategy. Being a monopolistic firm, they don’t follow the price set up by other firms in the group rather they set up the prices depending upon the local environment. They took proper analysis of the customers before implement the rational and affordable price. They study the competitors price, price objective, demand elasticity, estimate cost and then final price. Their objective is not to gain maximum profit but to gain maximum market. For example, it has been seen that Mac Donald’s is charging different prices in different countries for same products. It is often seen that different prices is being charged at different location within the same country. Like – For same product, Mac D charge different in Switzerland and Thailand. It is because of the per capita income and cost of living difference in two countries. Minimum wages in Switzerland is much higher than the minimum wages in Thailand which affects the price they pay in their country currency.

Also, Mac Donald’s is a very adaptive company which is famous for its local adaptive behaviour. Company set it pricing as well as marketing strategies according to the local conditions and therefore win the hearts of its customers. Like India is a developing country and prices of Mac Donald’s food in India is relatively economical. Therefore In India it is considered as economical food place for all.