The company has standardized processes designed to maximize efficiency, minimize costs, and ensure profitability despite the use of competitive selling prices. McDonald’s generic strategy is cost leadership, which builds competitive advantage through cost minimization. McDonald’s Generic Strategy (Porter’s Model) This competitiveness addresses the strong external pressure coming from competitors, as characterized in the Porter’s Five Forces analysis of McDonald’s Corporation. On the other hand, the company’s generic competitive strategy defines business competitiveness in the international fast-food restaurant industry. McDonald’s intensive growth strategies determine business growth and development potential. The company’s competitive advantages and competencies are based on the successful implementation of the generic strategy and the support of the intensive growth strategies of the fast-food business. McDonald’s generic competitive strategy also shapes the business foundation for competing in the global market. The related strategic objectives dictate the company’s operational activities, especially in responding to economic changes and competing food service firms, such as Wendy’s, Burger King, Subway, KFC, and Arby’s, as well as Starbucks, Dunkin’, and Tim Hortons. As the biggest fast-food restaurant chain in the world, McDonald’s uses its intensive growth strategies to support business development and expansion. McDonald’s generic strategy determines the basic approach to developing the competitive advantages of the business, and the company’s intensive growth strategies focus on approaches for growth and viability.
McDonald’s generic strategy (Porter’s model), and intensive growth strategies (Ansoff matrix) reinforce each other for competitive advantage in the fast-food restaurant industry.
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