Competitive Strategy Of Mcdonalds

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Strategies within the QSR It is no accident that McDonald’s has been around since 1954. Everything decision that is made is deliberate and thoughtful. With that being said, not all decisions have turned out the way McDonalds’s had hoped. That is why it is important for them to have a competitive strategy to guide their decision-making process. Not all businesses use the same competitive strategies, however, the goal is all the same: to gain a competitive advantage and increase profits. When McDonald brothers revamped their first restaurant in 1948, they initiated their use of the competitive strategy of “best-cost provider”. The interesting part about McDonald’s is that even though they have made a countless number of changes to its menu, slogan, and appearance to their buildings; they continue to lead the QSR industry using the same strategy. Their strategy is a combination of an overall low-cost provider as well as broad differentiation (Bethel University, 2017). McDonald’s uses the buying power of ordering supplies for their massive network of nearly 37,000 locations to keep supply chain management low. Furthermore, by hiring minimum wage workers and implementing new technologies as they arise, McDonald’s is able to lower distribution and operations costs as well. The second strategy of broad differentiation is accomplished by offering multiple options at its restaurants. Instead of settling for a limited consumer base of people that want a fast hamburger, with a nine

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