What Are The Competitive Advantage Of Mcdonalds

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The intensity of competition among the firm in fast food industry is at a high level. Every firm was looking for a competitive advantage to give them the strength of surviving in the market. The concentration of firms in fast food industry is saturated. McDonald’s face the strong competition in quick service eating establishment from well-established competitor fast food outlets, such as Burger King, Wendy’s and KFC, as they provide identically products and services. Moreover, McDonald’s face the strong competition in home delivery or takeaway service, and self-service cafeterias, such as Starbucks and Dunkin’ Donuts. Hence, McDonald’s was very innovative in the products to differentiate it from the competitors and attract customers. Besides, they added a breakfast menu to compete with the other breakfast chain. McDonald’s adopted product localization need and tastes by offering…show more content…
There is a higher level of substitute availability and low switching cost of consumers. Fast foods can be easily replaced by meals and restaurant or home-made food. There are many fast food restaurants which can substitute the hamburger of McDonald’s, such as Burger King, KFC, Wendy’s and White Castle. In order to gain competitive advantage, McDonald’s has competed with the competitor in terms of quality and customer satisfaction by maintaining the quality of raw material that is being used for the organizations. McDonald’s ensures that the quality of products able to meet all the requirements under a category of good manufacturing by monitoring all the suppliers is under the conformity of quality control. Moreover, McDonald’s had to promote healthier fast foods and put effort on marketing to retain its image since there is an increasing awareness of people about the fast food have brought the detrimental effects on health and hence customers are switching to substitute products with better nutritional values. (adamkasi,
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