Business Level and Corporate Level Strategies

Business Level and Corporate Level Strategies

Business Level Strategy

The business level strategy of McDonald's is one of the best in the fast food industry. McDonald's maintains a cost leadership strategy while deliver reliable food with quality service. Today we witness McDonald's in an established industry that utilizes product proliferation in order to meet a number of needs in the fast food industry while putting off new entrants. McDonald's keeps their business level strategy fresh by innovating their markets as well as their products.

The business level strategy McDonald's uses in its primary market consist of brand differentiation and cost leadership. With their low cost and differentiation model, it can also be categorized as an analyzer as they sustain a established business model while innovating on the side. McDonald's business level strategy is supported by its functional strategies which incorporate the ability of McDonald's to achieve and maintain quality, customer service, innovation and superior efficiency. Their efficiency is revealed in their process of assembly line for making the food along with automated methods that need little knowledge or input from a human user.

The business level strategy influences a corporation's competitor in the industry by acting as the leader of an industry. McDonalds also influences other chins of fast food like Wendy's and Burger King as both these burger chains have implemented the assembly line method McDonalds is recognized for and the concepts of their child meal. The business level strategy of McDonalds also responds to the industry's cutthroat dynamics by innovating new products for example Snack Wrap, product proliferation (for e.g. burgers), market penetration (for e.g. into the breakfast industry), and market development (for e.g. the McCafe with coffee as specialty).

McDonalds also upholds their business level strategy by who they market to and how they market. For instance, McDonalds is recognized for focusing on kids. With children, McDonalds uses an unwavering market connecting the whole family, and in return gives the culture of America to the kids which facilitates to promote brand loyalty while they are enjoying the facilities (typically a playground) and their favorites meals.

Lastly, the business level strategy of McDonalds is that of low cost, differentiation and brand loyalty which is of most importance to the long-term success of the firm. McDonalds is the leader of an industry in a highly competitive market. However, as long as McDonalds maintains to produce innovative products, follow ...