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McDonald's Sees Rivals Into Breakfast
McDonald's is currently under threat in her breakfast market as Starbucks Corp, the king of high-end coffee which is previously focusing on her beverage business, has started to introduce hot breakfast sandwiches in some markets and even plan to sell them nationwide. To take a reaction for the threat by Starbucks, McDonald began to introduce a more robust blend of coffee in order to keep the customer not moving to Starbucks. She also launched commercial campaigns in order to boost its coffee and breakfast sales. The internal report of McDonalds made the official worried as it showed there is a decrease in the breakfast traffic but an increase in the breakfast traffic of Starbucks and Dunkin's Donuts and other stores which imply that McDonald's breakfast traffic is shifting out. Thus, in order to maintain the sales, McDonald is trying to improve the perception of her coffee by introducing more robust blend of coffee. Actually, the breakfast traffic of McDonald is rather flat; the overall fast-food breakfast market has been growing and thus the revenue. However, with the new introduction of hot sandwiches by Starbucks and continuously introduction of new sandwiches of the currently hot sandwiches providers such as Dunkin Donuts and Burger King Corp, McDonald is still trying to adjust her response to react for the coming threat.
Every Company had utilized its specific strength to build a good image and to penetrate to the target market. McDonald uses the McMuffins, Hotcakes and McGriddles to target the breakfast market. Starbucks and Dunkin' Don ...