The culture of McDonald’s centers on local control through joint venture, sole proprietorship, and franchising. The local partners are the core to meet and conform to local and national requirements for business within China. Customer behavior in relation to the quick service restaurant parameters of McDonald’s quickly adapts due to such close …show more content…
64). McDonalds has value due to its sustained financial resources, established franchise system, logistical systems, and industry saturation. Rarity is an asset in the China market. The number of competitors is limited, and the demand for the product exceeds the ability to meet demand. The use of franchisees is the strength to the rarity in this market. Costly to imitate is yes, because of brand loyalty and other historical success. McDonald’s exploits every advantage available regarding workforce, store locations, relationships, and political connections as resources. The answer of yes to the four questions in the VRIO framework suggests sustained competitive advantage for McDonalds within the China