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Competitor Analysis- Mcdonald's - Research Paper Example

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It operates correspondingly through a chain of restaurants, company operated and franchised across the world. Michael Porter presented a framework for analyzing competitor. The key aspects that Porter discussed are Competitors objective, Competitors assumptions, Competitors strategy and his Capabilities. In simple terms one should analyze his competitor’s strengths and weaknesses to draft his own strategy. Although both the fast food giants belong to the same family, but have specialization in different nature of products served. McDonald’s are famous for their Hamburgers and other’s in the Burger family, while KFC specializes in fried chicken. Both the corporations have the same geographical reach in the world and strong brand recognition. To its added advantage McDonald’s is listed in the NYSE giving it room for more growth through access to an enormous fund pool (McDonald’s Official Website, 2011; Porter, 2004). Toady due to its rapid expansion McDonald’s have its presence in 119 countries with an employee base above 400,000 worldwide. KFC on the other hand has similar presence but with an employee base little above 25,000. It may be small in size but has been the most successful fried chicken chain in the world. Due to his excellence in chicken products it has not faced any social issues till date. Chicken is the most consumed protein in the world with none social or religious restrictions placed upon it. KFC has faced certain protests from animal rights groups. McDonald’s has also seen the same from these organisations. On the contrary McDonald’s apart from animal rights organisation have witnessed many social and religious obstacles throughout the world. McDonald’s specializes in Hamburgers, but the fact that it is completely banned in Islam, Muslims across the world refuse to eat it. Therefore the company has limited its product range in the Muslim world. Further McDonald’s has faced issues with Hindus especially in India who refuse to eat Meat on religious grounds. This again has forced McDonald’s to cut back its product range. None of these issues have been faced by KFC, and hence it has a steady and strong growth trend across the world (KFC Official Website, 2011). KFC is a private corporation and is not listed as McDonald’s; its financial results are unavailable. Still its magnificent power can be witnessed as it is present in almost similar capacity and has maintained its strength in the Fast Food sector all over the world. Based on McDonald’s capacity to capture such revenues and the pace of its expansion, due to exposure to a massive fund pool being listed at the NYSE, it can be said that McDonald’s have overpowered many Fast Food networks on the planet. It can be advocated that KFC’s policy of slow expansion or its ability to have its corporate presence in many countries without being listed, is in itself a remarkable achievement. There is a huge possibility that such policy might change and in a situation of a price war between the giants, KFC has definitely the ability to challenge McDonald’s on all fronts. McDonald’s should show resilience in drafting strategies for corporate expansion; as such moves require a lot of investments. In case of any turbulence in the economic environment or KFC’s idea to get listed materializes, it would ring alarms towards McDonald’s to have in its grip a lot of liquidity so should it be in a price war situation with KFC. As McDonald’ ...Show more
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Competitor Analysis – McDonald’s Name University Competition drives the market dynamics of an industry. Different strategies are to be effective in diversified market competition scenario. Business managers have an eager eye on the current and potential competition prevailing in the environment…
Competitor Analysis- Mcdonalds
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