Maintaining McDonald’s Competitive Advantage

Subject: Company Analysis
Pages: 4
Words: 1119
Reading time:
4 min
Study level: College


McDonald’s is one of the most recognizable global fast-food chains in the world. The company currently has operations in many countries around the world, and its restaurants are located in different parts of the world. Thus, globalization has a significant impact on a company’s operations. To maintain and advance McDonald’s competitive advantage, both external and internal factors need to be assessed. It is also important to consider the influence of stakeholders on the success of the company, as they form the key aspects of its functioning. In general, it is important for McDonald’s to focus on improving the customer experience and providing unique products to the global market.


McDonald’s is an international company with restaurants located on six continents of the planet. This aspect makes the impact of globalization the most significant for the organization and its operations. The active process of globalization currently taking place allows the corporation to more easily and quickly open new restaurants in different parts of the world. This aspect has gradually made McDonald’s the most recognizable global food chain. This impact can be assessed as positive because globalization contributes to the expansion of the corporation’s operations and also increases brand awareness. Ultimately, these factors result in higher profits and more customers. On the other hand, the need to operate in different countries suggests variations in the cultural values ​​of consumers. On this side, globalization can be difficult for the company because of the perception of fast food as an exclusively American phenomenon.


Technological change is another major factor influencing the transformative operations of corporations today. The main technological advances that the company is actively using are aimed at improving the customer experience of interacting with the services of companies. This includes extensive integration of self-service systems, mobile applications, voice ordering technologies, product offering systems, and others. Undoubtedly, like other large corporations such as Amazon, McDonald’s strives to automate the process of ordering and receiving products for customers as much as possible. However, this factor is also associated with the need for large investments, which may not return in the future. Thus, technological changes have a positive effect on the number of customers and the level of customer experience but can also result in increased financial risks.

Industrial Organization Model

The main goal of the technique proposed by the industrial organization model is to maintain the largest piece within a highly segmented market. The result is achieved through changes in the cost of products, advertising information, and alliances. These aspects keep a small number of competitors and also create barriers to entry, which allows you to control the actions of actors in the industry. Within the framework of this model, the focus is on the primary influence of the external environment in which the company operates. The need for global operation results in a number of external and internal pressures for McDonald’s that are economical and geographical in nature. In particular, the corporation is currently facing competition both in the form of local and international companies. Most importantly, the idea of ​​the corporation and its products have become the subject of copying, which also threatens the stability of the company.

Resource-Based Model

The resource-based model, on the contrary, focuses on the company’s unique resources and capabilities. Within the framework of this model, the internal resources of the company are the main source of returns and have the greatest impact. Thus, differences between companies and their performance within an industry are based on the resources and capabilities of the organizations. Companies can shape their strategy based on available resources and their proper use. To create an effective corporate development plan, it is important to adopt both approaches in order to achieve the most positive changes.

Using these models, one can form a strategy that McDonald’s should take to achieve above-average returns. First of all, within the fast-food industry, the company needs to diversify its products as much as possible. The size economy will allow McDonald’s to make the most efficient use of available resources through mobility. It is also important within the framework of globalization to pay attention to the creation of more culturally sensitive products or offers. This factor will allow the company to acquire a unique competitive advantage in the global market. Finally, it may be beneficial for McDonald’s to also collaborate with other major industry players to expand the brand’s audience.


The company’s vision involves the constant growth and development of the company to provide access to delicious food to an increasing number of consumers. This statement is a driving force of the company’s operations, especially within a globalized market. In particular, the company is focusing on the continuous transformation of its operations to improve the customer experience as well as the speed of service delivery. This aspect is the key to the overall success of the company since its main goal is to provide access to fast and tasty food. It is important for the company to constantly improve its services, as well as expand the network of restaurants in order to provide services to more people around the world.


The mission of the company is to provide delicious food with easy access for everyone. This aspect also involves maintaining affordable prices, as well as a variety of locations. In the context of globalization, this is especially important for such a large chain, as it allows people from all over the world to have the same experience in each of the restaurants. In terms of overall success, this aspect allows you to create strong brand awareness, as well as attract more diverse customers. It is also important that this mission allows the company to maintain a competitive advantage through quality and price effectively.


First of all, customers, as business stakeholders, form the main request for McDonald’s and are also the driving force for changes. The key to the company’s success is to improve customer experience and maintain brand awareness. A corporation’s franchisees also influence its operations by providing links to local markets that are the backbone of the global market. Employees ensure the functioning of not only restaurants but the entire structure of the company. In relation to the success of McDonald’s, it is important to note that the mobility of workers is one of the main advantages of the company. The company’s suppliers have an impact on the company’s success through the provision of quality products at competitive prices. Regulatory authorities form guidelines for the operation of the company both in the global and local markets. Community members enable a company to shape brand perception and maintain awareness. Finally, shareholders directly make decisions on the development of the company, which contributes to its success.