Final answer:
McDonald's faces challenges such as cultural differences, competition, and price sensitivity when competing with local restaurants or chains.
Step-by-step explanation:
McDonald's faces several challenges when competing with local restaurants or chains in specific countries:
- Cultural differences: McDonald's must adapt its menu and marketing strategies to fit the local preferences and tastes of each country. For example, McDonald's offers rice dishes in Asian countries, which is not typically found in their menus in other parts of the world.
- Competition: Local restaurants and chains often have established customer loyalty and may offer more unique or traditional flavors that attract customers. McDonald's needs to differentiate itself and convince customers that their offerings are superior.
- Price sensitivity: Local restaurants may offer lower prices or value meals that appeal to cost-sensitive customers. McDonald's needs to carefully price their products to remain competitive without sacrificing their brand image.