Global Strategy : Competitive Advantage

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Video Analysis #3 - Global Strategy: Competitive Advantage
This video uses cereal markets to explain the concepts for developing sustainable, competitive companies. It teaches the following five valuable lessons.
Lesson #1 Define your objectives in the marketplace.
Although Kelloggs and Cereal Partners are the leaders in the global cereal market, there are many other fierce competitors. Competitive advantage is crucial to strategy and there is no magic formula for developing it. Therefore, each company has to develop their own individual methods of doing this. For instance, the effective strategy that Kelloggs uses, is to maintain their leadership in the market. Other smaller generic company’s strategies may only involve a concern for
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Application for McDonalds:
McDonalds needs to constantly examine trends and to come up with new and improved innovative strategies to maintain its competitive advantage so that it does not lose its position to competitors. In addition, since McDonalds is global, this may be a more difficult challenge. Therefore, McDonalds must pay special attention to various outside forces, such as changes that occur within different country’s economies, laws, or local area concerns.
Lesson #3 Experiment to find a defendable market niche. Since Kelloggs and Cereal Partners are such strong competitors, one would think that other companies could not survive and compete against them, but this is not true. Many other companies do exist because each company has found market opportunities and have found their own niches in the market that aid them in becoming successful. Examples, are healthy segments, children segments, supplies under the name of major retailers, etc. (Lynch, 2014).
Application for McDonalds:
McDonalds is one of the few companies that is recognizable in almost every country around the world. McDonald’s defendable market niche is rooted in simplicity. McDonald’s famous golden arches and its bright-colored, smiling clown named Ronald, both stand for a brand that produces superior friendly customer service, standard uniformity for efficiency, convenience to customers, quality, and cleanliness.
Lesson #4 Treat each national market individually
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