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Mcdonald's Competitive Advantages

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McDonald’s is the world’s largest restaurant chain, serving a total of 69 million people a day at 34,000 restaurants worldwide. While facing a tough competition, McDonald’s has chosen to launch a new product to sustain competitive advantage as well as to attract customers in the ’18 to 32 years old’ range, which they have struggled with up to today. They launched the McWrap on April 1, invented by the 47 years old vice president and executive chef Dan Coudreaut. The McWrap is meant to be a healthier choice than the products McDonald’s are in general known for, as well as to compete with competitors such as Five Guys, Subway and Chipotle. However, people assimilate McDonald’s to junk food unlike the ”Subway buster”. Will McWrap help McDonald’s sustain competitive advantage? As McDonalds is known for being a quick-service restaurant, it attracts mostly customers who want quickly made food. I believe that the McWrap is slowing down the service, which exacerbates the brand. The speedy service is one of the main qualities of McDonald’s, and is one of their biggest competitive advantages. In addition the McWrap costs four times the price of a McChicken, which changes the customer’s perception of the low cost chain. The customers are always quite sensitive to increased prices, especially when it comes to new products bearing in mind that McDonald’s customer base includes the low wage income group. It can therefore cause loss of both potential customers as well as current

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