Golden Arch Hotel: McDonalds Adventure in the Hotel Industry Harvard Case Solution & Analysis

In 2001, McDonald `s has launched a new venture to open two hotels in Switzerland (Zurich and Lully) under the name" Golden Arch Hotel. "Hotels were arranged in a four-star hotel with the best in-room technology and a unique, contemporary interior design. Guest reviews were mixed after their stay at hotels Golden Arch. Most seemed to agree that the four-star rating, it seems, do not coincide with the image McDonald's. Given saturated market hamburgers world headquarters in Chicago, McDonald decided to start a "diversification" strategy to develop new ideas and concepts in the world. Urs Hammer, McDonald's Switzerland has long Director General proposed foray into the hotel business building image McDonald's clean and fast, friendly service. With strong global McDonald's brand recognition and the transfer of powers from the restaurant hospitality, Hammer was convinced that the project will be a success. Zurich hotel market was on the rise with several construction projects in the way. growth happens so fast in what analysts expected excess capacity in the near future. in the highly competitive hospitality market, hotels Golden Arch was faced with the problem of how to profitably target key customer segments: tour groups, business travelers and frequent travelers (if applicable) . With only two seats in a highly competitive country, how well this Golden Arch is located in Switzerland, and how it can be extended to model and start all over the world? It addresses: global marketing, positioning, segmentation, marketing, and profit model.
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by Stefan Michel Source: Thunderbird School of Global Management 16 pages. Publication Date: October 20, 2005. Prod. #: TB0109-PDF-ENG

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