Competitive Strategy Of Mcdonalds Corporation

McDonalds Corporation is the largest fast-food restaurant chain in the world headquartered in Oak Brook, Illinois. The first restaurant, located in San Bernardino, California was opened by Dick and Mac McDonald as McDonalds Bar-B-Q in 1940. In 1955, Ray Kroc opened the first franchised restaurant in Des Plaines, Illinois which showcased the soon to be famous Golden Arches. McDonalds’ first public stock offering was introduced in 1965 at $22.50 per share. The Ronald McDonald character first debuted in a television commercial in 1966 as part on the company’s marketing campaign and further expanded a few years later with additional characters. In 1968, the company’s flagship product the Big Mac was introduced after being created by a franchise …show more content…
Burger King uses generic and intensive growth strategies to gain competitive advantage. The company’s generic strategy uses cost, pricing, and product features while the intensive strategy is designed to increase market share. The generic strategy is broken into two parts, cost leadership and broad differentiation. Cost leadership is applied by standardizing processes to lower costs using economies of scale. The objective of this strategy is to reduce operating costs so that the company’s products can be offered to the customer at a lower price. Broad differentiation is achieved when Burger King applies it through the burger creation process. The company’s current marketing slogan “Be Your Way” refers to the flexible options it offers to customers. This differentiation tool is used to attract new customers in markets with established competitors. Burger King’s intensive strategy is broken into three parts, market penetration, market development, and product development. Market penetration is achieved when the company opens new restaurants in its current markets gaining them a bigger market share. The objective of this strategy is to increase revenue in existing markets where the company is already operating. Burger King achieves its market development approach by entering new markets or new target market segments. This strategy’s objective is to highlight the company’s low menu prices outlined in the pricing strategy which is maintained by the cost leadership generic strategy. The last part to Burger King’s intensive strategy is product development. The company adds new products to its menu at a slow pace and most remain for many years. Furthermore, the company is able to grow its business through product innovation which supports the broad differentiation strategy by spotlighting new products that are exclusive to Burger King (Gregory,