The man
...stry leaders such as McDonalds’ and Burger King had to transfer their distinctive competences to a new market in order to compete globally. Industry Environment: Large companies dominated the fast-food industry, which cause high entry boundaries for prospective competitors. The large companies such as McDonalds and Burger King had to focus on three major issues in order to compete; innovation, competitive pricing and achieving new distinctive competences, that “were better and more effective” then there competitors. The industry environment was fast moving and ever changing, competition was high and it was not going to because and less intense in the near future. The fast-food companies were well aware of this and prepared to fight for there consumer markets. 2. What strategies are fast-food restaurants pursuing today to protect their competitive position? Price Reduction: Although “price wars” have lessened, the demand for the lowest price and best quality will always remain. The pressures for cost reductions will always be high, so have to constantly focus on keeping costs low. Local Responsiveness: A simple example of this would be the McDonald serves Lobster in New England; this was done to meet the needs of that particular market. Innovation Strategy: Pursui...