Country Risk Analysis Business Venture Term Paper

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But rather than cater to healthy tastes, to distinguish itself in the Japanese market, McDonald's has found it more effective in 2007 to instead promote specials like the "Mega Mac, a hamburger with four patties," which "was originally to be a limited time offer," but the fast food chain decided to extend the promotion in order to meet the increased demand for Japanese wishing to sample how 'Americans really eat' -- even though ironically the burger is much more caloric and high in cholesterol than anything McDonald's in America offers to American consumers ("McDonald's extends Mega Mac campaign to meet demand," 2007, Japan, Inc.).

Cyber/technology

When McDonald's had lost its social cache during its low point in 2003, it was increasingly the designees of solitary diners who preferred to look at their cell phones or laptops than chat. Such diners bring in less revenue, price-wise, and often consume smaller, less pricy products (Lewis 2003:2-3). The image of solitary diners also hurts the company's promotional image of family wholesomeness, and positioning as a trendy, fun place to eat out -- especially important in Japan. However, the ability of users to surf the Internet and learn about new promotional offers and ways of eating at different McDonald's around the world has generated interest in the Mega Mac

Physical environment

In a small nation such as Japan, eating out rather than taking food to go is important, and the product must be priced low enough to hold on fast in the market, easy enough to consume on-site, yet generate enough revenue to maintain attractive eating facilities for individual franchise branches.

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Eating in, especially in large cities, is not popular because of the small nature of most Japanese apartments. Also, most areas are quite congested, which means in terms of placement, competition between restaurants is quite cut-throat. Finally regarding product promotion of new items, the Japanese market may be increasingly problematic for McDonald's: "people are having fewer children while the population is growing older and health-conscious," but McDonald's has done poorly marketing healthy products in the nation -- teens prefer the humor of the advertising strategy for the heart-attack on a bun known as the Mega Mac, but will this sustain the chain? (Lewis 2003:1)

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