I would have to say that of the generic strategies listed in our text, McDonald's appears to employ the Low-Cost Provider Strategy as its' primary strategy. I say this as the price competition among rivals is very vigorous, and products among rivals are fairly identical. However, of late, McDonald's has also begun employing a product differentiation strategy by marketing new and innovative products with its' McCafe offerings, new snack wraps, etc.
These strategies are continuing to work for MCD as today's stock price closed at $74.95 up $0.03 (or 0.04%).
http://www.google.com/finance?q=mcd
I completely agree. McDonald's value meals are so much cheaper than their rivals it's ridiculous. Let's take Arby's for example, if you compare the cost of a beef and cheddar meal with the cost of quarter pounder with cheese meal, it's not close. If you want to keep your money in your pocket, choose McDonald's.
ReplyDeleteI also agree and you will notice more families and groups choosing McDonald's because of this.
ReplyDelete