Successes in Global Expansion
McDonalds and Starbucks

McDonalds and Starbucks are two of the biggest and most recognizable companies in the world today. They have both dominated their particular markets to such an extent that they have begun competing for the others market share all over the world. Both companies have expanded to markets all over the world. Sometimes even expanding too fast for their own good. In 2008 Starbucks had oversaturated many domestic markets and ended up closing approximately 600 stores. (Merced, 2008) In the early 2000’s McDonalds realized they needed to revitalize their brand after they had attempted to expand to fast and had taken its customer’s needs for granted. (Light & Kiddon, 2012) McDonalds has reached such market penetration that in the United States it seems like you can’t drive but a few miles without passing the golden arches. They have over thirty five thousand stores, and have established those stores in over one hundred countries Worldwide. (Getting To Know Us) McDonalds had successfully spread their brand all over the world but with profits and brand notoriety falling fast they knew they had to make a change. McDonalds had fallen into a downward spiral of always trying to do what had worked for them in the past. They made every new store look alike instead of focusing on local or changing cultures (Light & Kiddon, 2012). With more and more people, especially in the United States, becoming more health conscious and the Obesity rate skyrocketing, McDonalds posted their first losses since the company had gone public. Focusing on cost reductions and monthly sales gimmicks were not helping the bottom line in the long term. McDonalds knew they had to make changes and their management took steps to make that happen. McDonalds not only started trying new menu items, they started a worldwide