Use Resource Based View (RBV) of competitive advantage to analyse McDonald

Use Resource Based View (RBV ) of competitive advantage to analyze McDonald

McDonalds being one of the largest food franchise company locally and abroad , has been successful in all its undertakings since its foundation in 1955 . With its principle of increasing the shareholder 's welfare by increasing the growth of their profits and markets shares , McDonald 's family continuously holding its impressive growth condition in the market . Now , in for us to systematically evaluate the advantages of McDonalds , we 're going to use the Resource Based View ' of competitive advantage in this

study

RBV is defined as a tool by which is being used in determining the strategic resources that are available for the firm . Basically , based from this principle , competitive advantages of firms come from the efficient allocation and application of bundles of valuable resources for its own consumption ADDIN EN .CITE Kotelnikov3Vadim KotelnikovResource-Base d View (RBV ) of Firms2007http /www .1000ventures .com /business_guide /mgmt_stategic_resource -based .html (Kotelnikov , 2007 . The issue here is on how to have sustainable growth rather than having short term growth only , and the only way by which firms would attain sustainable growth would be when its bundle of goods are heterogeneous in nature and not perfectly mobile

One of the elements in for a bundle of goods to be considered as heterogeneous is that each firm has its unique capabilities . McDonalds as taking into consideration its co-industry companies , they have their own characteristics . It is easy for customers to distinguish the difference in the design of the stores as well as the tastes of the food . As for McDonalds , one of its distinguished characters especially for kids is its M ' logo . At one glance they would already know that it is a store of McDonalds . Its foods are prepared in such a way that it would serve as their trade mark . Like the tastes of their burgers and fries . Another element of a heterogeneous bundle of resources is the ability of the firm to compete in the market place . In the case of McDonalds , it is pretty obvious that they have the guts ' and capabilities to compete fact to face with other international fast food chains . With its large market share and years of experience in this industry , they already have the advantage over other companies in the competing with each other

It is not only being heterogeneous of the bundle of resources is the factor that contributes for a firm to have competitive advantage . There are still other factors to consider such as resource and capabilities In other words , the firm is very hard to imitate or has already been in the industry for several years . Of course , McDonalds has all of these traits . McDonalds has been in the industry of fast food chains for over 50 years and this gave them enough chances of improving their products and to study the behavior of the market . Its market dominance can be seen on the number of branches that the company has around the...