Trends and Competitors in McDonald's Strategic Management

Running Head: MANAGEMENT 0
STRATEGIC MANAGEMENT

MANAGEMENT 1
1) The trends in McDonald external environment having great influence on company
capability to sustain competitive advantage include the millennial taking out
consumption at fast-casual restaurant that is healthy and fresh. In fast food industry,
the millennials are known to be as regular consumers that will go to one chain twice
or more and thus considered to be major demographic. Nevertheless, the company is
not able to do well in this demographic as of the new trend to be healthy where most
millennials are more tends towards to those restaurants who are embracing upon fresh
and healthy products. Moreover, the millennials are also like those restaurants that
determine social awareness.
Considering this demographic, McDonald reputation does not match and thus they
face issues to attract a number of millennials.
2) McDonald is not positioned well against its major competitors in relation to foods,
service, and innovation. Nevertheless, McDonald is known to be largest brand in the
industry, it has been following behind its competitors. In comparison with McDonald,
Burger King is doing very well by making its presence as world third largest in the
industry and with their usage of simplicity in encompassing the product lines. In terms
of innovation, Burger King only adds various sorts of bacon, sauces and cheese to the
core menu items. In addition, the company also was successful in offering and
attracting promotions to appeal customers without slowing down service time.
Wendy is also one of the competitors of McDonald which differentiates itself by
being “a cut above” its competitors. They deliver greater quality products that are
made fresh-to-order. The success of the company can be determined with their
approach of “barbell” considering pricing and products. Moreover, they also have a
much faster service time having an average of less than 1 minute in comparison with
McDonald i.e. 189.2 seconds.
3) Since 1940, the company has successfully incorporated an integrated differentiation
and low-cost business strategy that help them in their huge growth over long period.
McDonald drove down their costs by streamlining the process of food production,
delivering quick service and this provides value to the customers. However, much
extreme competition from rivals and recent social trends cause many disruptions in
their low-cost/differentiation strategy and thus these changes negatively impact
McDonald in the last couple of years.