MC DONALD’S – COMPETITOR ANALYSIS, CSF, CORE CAPABILITIES AND SWOT

Lara Cremasco, Alexonne Anillo, Adeline de la Vallée

Case objectives and questions

The objectives of this case are to look at the strategic capabilities of Mc Donald’s and the
analysis of competitive advantages in order to identify the Critical Success Factors (CSFs), also
called Key Success Factors (KSF) which the firm’s industry is facing. It will as well describe
the core competencies that McDonald’s exploit to drive their competitive advantage. After
analyzing these subjects, we will be able to answer the following questions: What are the
implications for the future business of McDonald’s?

Case Synopsis

McDonald’s Corporation was founded in 1948 by Richard and Maurice McDonald’s in

California, more specifically in San Bernardino, USA. It is an American fast food company. In
1954, McDonald’s has been redeemed by Ray Kroc their mixer supplier. The actual CEO of
Mc Donald’s is Chris Kempczinski. He was appointed Chief Executive Officer only a few days
ago. Following this news, we can maybe expect some changes in the strategies already put in
place.

To better understand the competitors of McDonald’s, we need to analyze the strategic

capabilities of the company. This strategy refers to a business' ability to control all its skills,
capabilities and resources in order to gain competitive advantage, and thus survive and increase
its value over time.

With the VRIO tool, which is a complement to a PESTLE analysis, it examines the internal
environment of a firm. It considers four keys criteria to determine its competitive potential., it
is a basis for achieving such competitive advantage. The criteria of VRIO are: value, rarity,
inimitability and organizational support.

Following the Porter’s five forces framework, the study of the Critical Success Factors helps us
to understand how the industry profit is shared between the different companies competing in
the industry. In our case, the firm’s industry is the fast food industry. The Critical Success
Factors are factors that are particularly valued by customers (i.e. strategic customers and
provide a significant advantage in terms of cost. Identifying them helps to interpret the firm’s
ability to outperform rivals. It is an important source of competitive advantage or disadvantage.

Defining the core capabilities, permit us to highlight the unique abilities of McDonald’s
acquires from its founders that cannot be easily imitated. They are what give the firm more
competitive advantages, in creating and delivering value to its customers in its chosen field.

After all these analyzes, we will be disposed to evaluate their implications for the future
business.

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