While McDonald’s resources are the useful assets which help the company create a cost or differentiation advantage which rivals cannot acquire easily

While McDonald’s resources are the useful assets which help the company create a cost or differentiation advantage which rivals cannot acquire easily, capabilities entail McDonald’s ability to use its resources effectively and efficiently(Gilbert;2009 ; Business Education, 2016). Examples of McDonald’s resources include: corporate brand identity such as brand image, brand reputation and brand equity. Other resources include strong technical know –how, installed customer base and patents and trademarks. An example of McDonald’s capability is its skill in bringing a product to the Indian market faster than rivals who help the firm enjoys first-mover benefit. McDonald’s resources and capabilities form distinctive competencies which facilitates innovation, efficiency, quality and customer responsiveness.
A resource based view is used to explain McDonald’s resources and capabilities. According to the resource-based view theory, McDonald’s uses its resources and capabilities to produce a competitive advantage which subsequently yields an excellent value creation.
The model indicates that McDonald’s must develop a competitive advantage through resources and capabilities which are superior to competing products.