In order to develop a competitive strategic advantage, MC should following the three approaches. Firstly, MC should building strong relationships with customers. to approaches this goal MC need to build up they brand image, Their image of McDonald’s includes many favourable beliefs such as fast service, consistent quality, and clean restrooms. Strong brand images facilitate customer loyalty because they reduce the customers’ risks associated with purchases. What's more a retailer’s brand image reflects its positioning strategy. Positioning is the design and implementation of a retail mix to create an image of the retailer in the customer’s mind relative to its competitors. So as a fast-food restaurant, MC positioned as a family-friendly, low-cost fast food restaurant that offers selections for adult and child consumers. Then it can help them to focus on their target customer who is children and families, and they currently dominate in the fast food category. Besides, MC also needs to design the unique food to develop customer loyalty, such like design a new favour burger which the customer cannot buy from other fast-food restaurant. In addition, as a restaurant they also need to offer excellent customer service in order to develop customer loyalty.
A second approach for developing a competitive advantage is to develop strong relationships with companies that provide merchandise and services to the retailer, such as real estate developers, advertising agencies, and transportation companies.
Thirdly, In addition to strong relationships with external parties, customers, and suppliers, retailers can develop competitive advantages by having more efficient internal operations. Larger retailers can invest in developing sophisticated systems and spread the fixed cost of these systems over more sales. In addition to size, other approaches for improving internal operating efficiencies are human resource management and information and supply chain management systems.
1) They are the largest fast food market share in the world.
2) The McDonald’s brand recognition values at $40 billion.
3) They has much more advertising budget (they had $2 billion in 2013).
4) They can use locally adapted food menus.
5) They have partnership with best brands such like Coca-Cole.
6) More than 80% of restaurants are owned by independent franchisees.
7) Children targeting. Weaknesses
1) High employee turnover in their restaurants leads to more money being spent on training.
2) They have yet to capitalize on the trend towards organic foods.
3) McDonald’s have problems with fluctuations in operating and net profits which ultimately impact investor relations. Operating profit was $3,984 million (2005) $4,433 million (2006) and $3,879 million (2007). Net profits were $2,602 million (2005), $3,544 million (2006) and $2,395 million (2007). Opportunities
1) Increasing demand for healthier food.
2) Home meal delivery
3) Full adaptation of its new practices
4) Changing customer habits and new customer groups Threats
1) Saturated fast food markets in the developed economies.
2) Trend towards healthy eating.
3) Local fast food restaurant chains.
4) Currency fluctuations.
5) Lawsuits against McDonald’s Mission
McDonald's brand mission is to be our customers' favourite place and way to eat and drink. they worldwide operations are aligned around a global strategy called the Plan to Win, which centre on an exceptional customer experience – People, Products, Place, Price and Promotion. They are committed to continuously improving their operations and enhancing their customers' experience.
Prepare for threats
Design healthy food. Research local advantages of fast food shops, and learning advantages, improved their own food.
The biggest advantage is the mall can attract many shoppers which can bring large number of potential customer. And the customers don’t have worry about the weather…