2. What source of competitive advantage does McDonald’s have, and is that position supported by its value chain and other internal resources?
-Inherit the previous CEO Cantalupo’s turnaround strategy. This strategy referred as the ”Plan to win” tried to target various critical areas that needed to be addressed. -Rapid market fragmentation, which is describing the changes of consumer taste have made once-exotic foods like sushi and burritos everyday options. Many fast food customers are looking for healthier and better tasting food. Moreover, competitions has been coming from quick meals of all sorts that can be found in supermarkets, convenience stores and vending machines.
- customers now working around theclock, expecting 24 hour access to fast food, how toplease range of customers from kids to contractors? Sociocultural
- customers preferences have changed tomore exotic foods, healthier food with better taste Economic
- current economic downturn means
customers might be trading down to McDonald’s if they
want to eat out
- boundaries are disappearing, travelers moreopen to global consistency in food offerings - GoldenArches are accepted, and expected, everywhere
2. Cost leadership has been the traditional strategy for thefast- food industry, but McDonald’s kept costs under
control in order to achieve parity with competitors
-McDonald’s tried to develop a differentiationadvantagewhile keeping costs at a reasonable level -Differentiation requires the creation of something that isperceived industry-wide as unique and valued bycustomers -Differentiation is achieved by a firm configuring its valuechain activities to support its position so customers arewilling to pay a premium for something unique – could McDonald’s do this effectively?