Video Analysis #3 - Global Strategy: Competitive Advantage
This video uses cereal markets to explain the concepts for developing sustainable, competitive companies. It teaches the following five valuable lessons.
Lesson #1 Define your objectives in the marketplace.
Although Kelloggs and Cereal Partners are the leaders in the global cereal market, there are many other fierce competitors. Competitive advantage is crucial to strategy and there is no magic formula for developing it. Therefore, each company has to develop their own individual methods of doing this. For instance, the effective strategy that Kelloggs uses, is to maintain their leadership in the market. Other smaller generic company’s strategies may only involve a concern for surviving. …show more content…
Some markets such as the United States and the United Kingdom are relatively mature in growth and there are many brands. Other markets such as China and South Africa have markets that are still in the initial stages of development. Notably, market maturity impacts competitiveness. In a slow-growing market, Kelloggs has a strong competitive advantage and it is difficult for competitors to dislodge them from the market. However, in fast-growing markets, competitive advantages are more fluid, which makes it easier for competitors to beat major brands such as Kelloggs and Cereal Partners. In fast-growing markets, competitors can take over the market by using product innovations such as flavoring, packaging, and finding ways to lower manufacturing costs. Therefore, to stay competitive, companies should treat each market differently (Lynch, 2014).
Application for McDonalds: McDonalds global strategy does indeed treat each market individually and should continue to do this to stay competitive. For example, McDonalds sells beefless burgers in India, offers kosher food in Israel, and calls there Bic Macs, McRoyals in France. McDonalds caters to each of its markets individually (Ben-Haim, 2013). This helps to keep them number one because different countries present different opportunities.
Lesson #5 Identify and build on your special …show more content…
The way companies can successfully overcome when competing against large companies such as Kelloggs and Cereal Partners, is to understand them but not to copy them. Imitations, often do not deliver advantages. It is more effective to explore questions such as “What makes us different?” “Why should customers come to us?” and “Do we have something that sets us apart?” Companies that analyze their own resources and capabilities are the most successful. Therefore, companies need to build upon their own special strengths (Lynch, 2014).
Application for McDonalds: McDonald’s strengths are their brand recognition, their low-cost menu, their family values atmosphere, and their thousands of locations dominating the globe. McDonalds needs to build upon these strengths to continually ensure that “Everyone is lovin’ it at McDonalds.”
Reference
Ben-Haim, E. (2013, April 17). McDonalds Global Strategy. Retrieved from https://www.youtube.com/watch?v=OCG7ScRP1ws
Lynch, R. (2014, January 20). How to Develop Effective Global Competitive Advantage. Retrieved from
This video uses cereal markets to explain the concepts for developing sustainable, competitive companies. It teaches the following five valuable lessons.
Lesson #1 Define your objectives in the marketplace.
Although Kelloggs and Cereal Partners are the leaders in the global cereal market, there are many other fierce competitors. Competitive advantage is crucial to strategy and there is no magic formula for developing it. Therefore, each company has to develop their own individual methods of doing this. For instance, the effective strategy that Kelloggs uses, is to maintain their leadership in the market. Other smaller generic company’s strategies may only involve a concern for surviving. …show more content…
Some markets such as the United States and the United Kingdom are relatively mature in growth and there are many brands. Other markets such as China and South Africa have markets that are still in the initial stages of development. Notably, market maturity impacts competitiveness. In a slow-growing market, Kelloggs has a strong competitive advantage and it is difficult for competitors to dislodge them from the market. However, in fast-growing markets, competitive advantages are more fluid, which makes it easier for competitors to beat major brands such as Kelloggs and Cereal Partners. In fast-growing markets, competitors can take over the market by using product innovations such as flavoring, packaging, and finding ways to lower manufacturing costs. Therefore, to stay competitive, companies should treat each market differently (Lynch, 2014).
Application for McDonalds: McDonalds global strategy does indeed treat each market individually and should continue to do this to stay competitive. For example, McDonalds sells beefless burgers in India, offers kosher food in Israel, and calls there Bic Macs, McRoyals in France. McDonalds caters to each of its markets individually (Ben-Haim, 2013). This helps to keep them number one because different countries present different opportunities.
Lesson #5 Identify and build on your special …show more content…
The way companies can successfully overcome when competing against large companies such as Kelloggs and Cereal Partners, is to understand them but not to copy them. Imitations, often do not deliver advantages. It is more effective to explore questions such as “What makes us different?” “Why should customers come to us?” and “Do we have something that sets us apart?” Companies that analyze their own resources and capabilities are the most successful. Therefore, companies need to build upon their own special strengths (Lynch, 2014).
Application for McDonalds: McDonald’s strengths are their brand recognition, their low-cost menu, their family values atmosphere, and their thousands of locations dominating the globe. McDonalds needs to build upon these strengths to continually ensure that “Everyone is lovin’ it at McDonalds.”
Reference
Ben-Haim, E. (2013, April 17). McDonalds Global Strategy. Retrieved from https://www.youtube.com/watch?v=OCG7ScRP1ws
Lynch, R. (2014, January 20). How to Develop Effective Global Competitive Advantage. Retrieved from