Visa inc. has been in the market for many years so we can consider that it is in the maturity stage of product life cycle. Therefore the possible strategies that the firm can do are entering to the new market or develop the new product.
The company is in the market maturity stage of the product life cycle. In this stage, the strong growth in sales by the company is diminishing. At this stage of the product life cycle the competition may appear with similar products like Burger Kin is doing to McDonalds. The primary objective that a company should focus on when at this stage of the product life cycle is to defend its market share and try to maximize it profits. At this stage also, the features of its products might be enhanced or the company might try to implement other products in order to create a stiff competition for its competitors. For instance, the company has introduced a new type of food called a salad that targets its health-minded customers.
The pricing of the foodstuffs have also been revised lower to fight the competition. The distribution plan of the company has also been revised to become more intensive and with increased incentives to encourage customers to choose McDonalds over its competitors. All these characteristics are of a company in the maturity stage and so is the McDonald’s company. Among the three positioning strategies, McDonalds uses the breakaway positioning strategy. This strategy is where the product escapes from its original category and deliberately associates itself with another product.