Not long ago, my father and I were talking about McDonald’s, and the reasons for that company’s declining market position, or at least the perception of it. He threw out the oft-given explanations, things like changing American consumer patterns and more flexible competition, and there is a lot of truth to that. However, I said the core reason is much simpler: everyone else simply caught up.
By that I meant, McDonald’s single biggest comparative advantage had/has deteriorated. This being commoditization, and the folks at the golden arches aren’t alone. In fact, the commoditization of products and services has been the underlying business model for many American corporations, and it has served them well. Now, however, even commoditization has become, well, commoditized, if that makes any sense…Read On…
The opinions expressed within this report are those of John Norris as of the initial publication of this blog. They are subject to change without notice, and do not necessarily reflect the views of Oakworth Capital Bank, its directors, shareholders, and employees.