When the company thinks of local McDonald's, it probably doesn't think of "innovation." This is because everyone has become accustomed to the many new things introduced by McDonald's over the years. Some people don't even know that McDonald's was the leader in innovation by being the first major international fast food restaurant, with the first drive-thru window. What many people don't realize is that McDonald's continues to drive innovation in the fast food space. Sometimes the innovation is well publicized, but other times it is designed in such a way that customers do not even notice it (Ritzer, 2004). This article examines the effects that optimal product positioning strategies have on the innovation and creativity of outlet locations in the fast food industry. industry. McDonald's, a global fast food giant, has been the largest fast food distributor since 2004, with more than 31,000 restaurants in 120 countries, attracting 47 million customers per day (Ritzer, 2004). The relationship between profits and product differentiation reveals that McDonald's is better than most fast food chains at competing locally and globally across large market areas. Ritzer defined this as McDonaldization, a process by which the principles of fast food restaurants are to dominate more and more sectors of American society as well as the rest of the world (Ritzer, 2004). In large markets like India with limited competition, McDonalds has had the challenge of responding to the immigration of flavors across global cuisine. For McDonalds, the conversion was going to involve various forms of selection and different taste buds, delivery as well as compatibility. A fast food chain like McDonald's can market a general menu, but in countries like India, this chain still had to...... middle of paper ...... big, start small, scale fast » growing customer innovation at McDonald's. , from the EBSCOhost Direct database. Hanacek, A. (2007). Unique approaches to innovation: McDonald's leverages "a strange, but beautiful relationship" to bring new ideas to market. Snacks and wholesaleBusiness. Retrieved July 23, 2010 from http://www.allbusiness.com/retail-trade/food-beverage-stores-specialty-food/4510323-1.htmlMurphy, C. (2008). 10 most admired for innovation. Fortune. Retrieved July 8, 2010 from EBSCOhost Direct database. Ritzer, G. (1993). The McDonaldization of society. Newbury Park, California. Pine Forge Press. Stamm, B. V. (2008). Managing innovation, design and creativity. John Wiley &Sons, Ltd. Thomasadsen, R. (2007). Product Positioning and Competition: The Role of Location in the Fast Food Industry. Marketing Sciences. 26(6), 792-804.