Competitive Advantage

Competitive Advantage

Competitive Advantage

In very clear words, the word Competitive Advantage (CA) indicates the positioning of an organization earned relative to the other businesses in the industry. As per the definition of Michael Porter, in order to sustain a competitive advantage a company must follow three different strategies. The (3) three divergent approaches are cost effective leadership, diversification, and motivation. The term cost effective leadership clearly defines that when a business delivers similar services and products like their competitors in the market but on a comparatively lower price (Doyle, 1983). The word differentiation refers when an organization provides a greater product or service at the same rate as the rest of its competitor's inferior services and products. The product “superiority” is habitually perceived via the customer. This is the part when the company's product positioning comes into play. For instance, an organization might have chosen to sacrifice on quality and make their product smaller and less durable. This approach will make the company's product different than the rest of the firms. However, on the other hand, this modification might allow consumers to believe that the company's product is superior to the rest of the similar products that are in the marketplace. The latter term focus means that organization or businesses will emphasis on a contracted section of customers or the market. This is one of the strategies that allows the company to develop specialization expertise in their area and attract to a niche market of consumers (Preston, 2002).

McDonalds Strategic Approach to Sustain Competitive Advantage

All organizations are in search for competitive advantage so as to attain an upper hand in the market. Competitive advantage or CA is the force that grasps their organization above the rest in the industry. The main idea that generates here is to give the company an additional power so as to gain a competitive advantage in the market for a longer period of time. This comprises brand acknowledgment and flourishes the company on being the first preference of its customers. One of the best examples of a business sustaining its (CA) competitive advantage is McDonalds. McDonalds is catering in the fast food business sector for a long time as compared to the huge bulk of the rest of the players. As the company is catering the audience for quite some time it is therefore that their product are well recognized internationally. McDonalds is the market leader because the company has great marketing and advertising strategies which the company consistently keeps on changing with the changing demands. McDonalds is an innovator in the fast food industry as they fond of creating ground-breaking ideas for instance the one dollar menu is the super-hit menu of McDonalds attracting the students. On the other hand, they also introduced the healthier food line for instance wraps and salads so as to attract their customers with the changing preferences and tastes.

McDonalds recently emerged by a new, exceptional coffee line for the winter season. This strategy is snatching the business away from ...