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McDonalds is one of the most popular fast-food restaurants, and its success is defined by compliance with the needs of the present-day business world. However, any company has specific strong and weak points, and their consideration allows the managers to readjust the operations according to the current situation. Therefore, the evaluation of McDonalds with the use of the VRIO framework will help to understand its position in the market.
The first criterion is value, and its establishment implies the creation of opportunities for further development. In the case of McDonalds, it is high as the combination of low prices, a broad range of products, and a powerful brand image contributes to the value. The second parameter is rarity, and it represents a challenge for the business since there are many similar companies in the market.
The third characteristic is imitability, and it is one of McDonalds weak points. Its products are easy to imitate, and this circumstance poses a threat from new competitors. The same applies to McDonalds strategies, and it adds to the issues related to the lack of uniqueness. The fourth parameter is organization, and it is one of the restaurants advantages. Its operations are highly organized due to the organizational structure that allows supporting numerous franchises.
To sum up, the success of McDonalds is defined by its strong organization and the value it creates for the customers. However, high competitiveness in the US fast-food market contributes to the emergence of specific issues. They include the lack of rarity of the products and services as well as their imitability. McDonalds cannot influence these factors but provides an example of a company that remains profitable under the specified conditions.
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