Introduction
After going through the Illustration Capsule, it is easy to see how McDonald’s is one of the world’s most respected, admired and endearing brands on the planet. On top of existing for more than half a century, they have been able to stay relevant and operating at such a highly level that can be attributable in part to their strategic vision and their execution. Organizing and controlling such a large entity may be cumbersome but the senior leadership of McDonald’s have put together a strategy that has allowed them to make changes and recalculate their direction as if they were a small business. Their aptly named ‘Plan-to-Win’ strategy has guided them well through seemingly hard economic times and kept the company focused on ‘being better, not just bigger’.

Strategy Match
McDonald’s faces many aggressive competitors in fast food industry. From Kentucky Fried Chicken to Subway, the company faces stiff opposition from all angles. McDonalds is one of the very few companies to be in a position challenge these rivals with offerings very similar to what they currently offer. With many communities and areas who have just stepped out or are in the process of ending their recession, they are calling for cheap and healthy alternatives to what is currently available. The products that these food establishments are already at a fairly low price to the consumer and so the only real way to maintain their current growth and revenue streams is to cut costs on the backend. McDonalds, in this case, has done a masterful job of doing so while earning the title of the 2011 top performing company on the Dow Jones Stock Market Index. This hasn’t slowed down the company one bit, as the case points out, McDonald’s serves 64 million customers in a 119 countries daily.

Targeted Market Advantage
Based on the above industry challenges and consumer demands, McDonalds have done a masterful job of incorporating these aspects into their business strategy. The first is with how they run their restaurant operations. McDonald’s invests heavily in their managers and this is evident with how they groom future managers with their Leadership Institute. This dedicated learning allows the trainers to illustrate exactly what to look for, warning signs and areas of success. The second advantage they have is affordable pricing. From low priced combo meals to the Dollar Menu, McDonald’s is able to offer a variety of products at a very low cost. The third advantage is sheer amount of variety in food and beverage choices that they are able to serve at any given time. From breakfast items and coffee to salads and healthy alternatives, it is hard for any company to match them without spreading themselves thin. And lastly, they have a commitment to improve existing locations and further expand internationally. Being the first has allowed them to select prime locations to operate in and by renovating these sites, they are able to reenergize and reinvigorate the brand and the community.

Sustainable Competitive Advantage
The above clearly highlights the many competitive advantages that McDonalds enjoys. The leadership of the company have for years been mindful of how the brand is perceived and have adjusted their message and priorities accordingly. This has helped created a brand with an immense amount of name recognition that is able to serve a plethora of products catering to a variety of needs on a scale that can only be described as massive. McDonalds is truly a global company that is able to articulate their mission and their simple mission in such a way that is hard for other organizations to imitate. This has all propelled McDonalds to their lofty position as one of the most admired companies