McDonald's Competitive Advantage (Case Study Sample)
The assignment involved evaluating mcdonald's performance compared to other rival firms in the industry. The assignment was in the form of question and answer. I was provided witha comprehensive case study that had all the information on macdonalds' management and performance over time. i was also tasked with recommending appropriate course of action fr the company.source..
McDonald's Competitive Advantage
Mcdonald's has maintained its position as one of the leading fast-food franchises for over six decades. The company has gone through different developmental stages to become the globally renowned franchise it is today. The corporations' biggest competitors include Wendy's, Burger King, Chipotle, and Chick-Fil-A. However, societal structures and values continue to change, and the brand is under threat of irrelevance and significant loss in market shares. People are more skeptical of fast-food items as they have been claimed to degrade the overall quality of life. The obesity pandemic in the United States and most westernized countries has led to people shunning and even condemning fast food brands. This paper explores the challenges faced by Mcdonald's, the effectiveness of the brand's leadership, and the possible strategies to help maintain its relevance.
McDonald's management has led to the brand establishing rapport with its intended market audience throughout the years. The brand utilizes an autocratic leadership style, where top management decides its vision while consequent departments roll out the implementation process (Shehu & Mohamad, 2016). Mcdonald's successfully established a family-friendly image from the moment of its conception. The brand bears a nostalgic feel for most people in the current society, with features such as the happy meal being a dominant part of school lunches (Ma, 2021). However, micro and macro-economic factors have led to the brand constantly fighting for its position in the market.
One major factor that threatens the existence of Mcdonald's is the numerous fast-food chains that continue to pop up. Brands such as Chipotle, Chick-fil-a, Wendy's, and Burger King seem to have the upper hand regarding the quality of food items, the value they roofer, and overall consumer preference. Initially, McDonald's prided itself in their affordability and ease of service regarding the time it takes to order food. However, growing concerns about the increasing rates of obesity in America have led people to shun traditional fast-food outlets. Brands such as Burger King and Mcdonald's are the face of obesity and are usually the first examples when people compare bad foods to healthier options.
The leadership style that has worked for Mc Donalds for centuries has led to the brand's struggle to maintain a share market in the contemporary setting. Brands such as Chipotle capitalize on their rather authentic Mexican cuisine and their ability to offer fresh produce. Other fast food brands offer better quality or a cheaper option, thereby eliminating the differentiating factor for Mcdonald's. The brand's attempts to offer a wider category of food options while simultaneously renovating their outlets further highlight their desperation to stay relevant rather than developing a unique mission. Therefore, McDonald's leadership is ineffective in the modern setting, and the brand's management needs to open up its decision-making strategies to deliver better value.
McDonald's competitive advantage is that it is one of the longest-standing fast-food joints in the world. Consequently, the brand is popular in most countries around the globe and bears a nostalgic effect for most adults nowadays. The brand's popularity was established by its associations with celebrities in the early 200s in their campaign to spread awareness of the brand. McDonald's competitive advantage also lies in the affordability of their food items compared to popular brands such as Wendy's and Chipotle. Consequently, the range of variety the brand offers continues to draw people to them. Attempts to include healthier alternatives to their menus led Mcdonald's to salad recipes, where some are customizable according to the customer's preferences.
McDonald's popularity has also been propagated by online propaganda, which has brought about good and bad press. Popular YouTube trends, where influencer rank dominant fast food joints from best to last, has continued to stamp McDonald's as one of the best fast-food joints in terms of the deliciousness of their items. Consequently, online trends help popularize new releases by the brand where mostly young people are influenced to order what their favorite celebrities order.
However, besides the free advertising the brand may get from popular influencers, McDonald's also receives a fair share of bad press from the same online trends. For instance, when an influencer with a massive following ranks the brands' French fires to be the least appealing out of a selected rank, their followers and other influencers may immediately undertake the same stance. Therefore, the brand and other fast-food joints must constantly defend their brand from the bad press from influencers. Another possible challenge to McDonald's strategy is its numerous attempts to maintain substantial market share. The brand is constantly discontinuing popular food items in an attempt to renovate its brand image, which results in most loyal consumers having to look for the same items elsewhere. The frantic renovations also confuse the brand, as it is still mainly a fast-food brand but also tries to adhere to health-conscious individuals.
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