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A Look at The Benefit of Having Improved Profits in Different Companies

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Advantage versus Competitive Advantage in Multinational Corporations

Advantage signifies a lower amount of labour output required to produce one unit of output in the classical trade theory, implying lesser amounts of labour to make one unit of output accessible to consumers (Weder 1995). On the other hand, competitive advantage is defined as the way businesses organize and perform discrete activities, creating value for the buyer in the process (Porter 2011). The literature has traditionally linked the effects of Porter’s competitive strategies on the attainment of competitive advantage to the achievement of improved financial results.

In today’s turbulent and unpredictable environments the achievement of competitive advantage depends increasingly on firms’ ability to provide greater long-term customer value. Resources and capabilities constitute the basis of difficult to duplicate value-creating strategies which can provide a firm with competitive advantage or above-average returns (Madu 2011). A multinational firm or enterprise (MNE) is one in which ownership is held across one to several other countries apart from the home country with global product divisions (Martineau 2000). MNE’s growth occurs only at the expense of other competitors. Competition, not expansion, is the major problem (Hammermesh & Silk, 1979). These firms struggle with both con?icting interest and interdependence (Karnani 1984).

Mc. Donalds is a private-owned, US firm that markets fried chicken pieces, endeavouring to break new ground in China. Its customer base has growing quickly since it entered the local market to compete. Its main source of revenue derives from fried chicken meals. Mc Donalds has diversified its product offerings to include Mc Donalds spicy, seasoned and sizzling chicken in accordance with local flavours. Mc Donalds responds to consumer needs for cutting-edge food preparation technology, long service hours and affordable cost for product and service. Mission: “To be our customers’ most loved, inviting quick service restaurant experience for the best-tasting, freshest in-store prepared chicken, as well as other original, unbeatable foods and beverages.” Mc Donalds is a part of one of the world’s largest fast food manufacturers with about 18,000 outlets present in over 120 countries. Mc Donalds China is a division of its global fast-food franchiser. The retail sales of commodities in China testify to a few prevalent consumer trends. Among the data represented, fast food heads the list of most bought items with grain, oil, beverages and tobacco being the most vital to the Chinese society. Here one observes that the trend is ripe for a maximized competitive advantage and the continued success of the fast food and even the faster food industry.

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A Look at the Benefit of Having Improved Profits in Different Companies. (2018, December 11). GradesFixer. Retrieved January 28, 2022, from
“A Look at the Benefit of Having Improved Profits in Different Companies.” GradesFixer, 11 Dec. 2018,
A Look at the Benefit of Having Improved Profits in Different Companies. [online]. Available at: <> [Accessed 28 Jan. 2022].
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