Having one of the most favorite burgers in the world, Mcdonalds is a brand which will hardly be missed by anyone. The SWOT of Mcdonalds discusses the reasons that the firm has been able to achieve this height of fame, and why, be it breakfast, lunch or dinner, people may prefer the local Mcdonalds.
Strengths in the SWOT analysis of McDonalds
- Brand Equity…world-wide
- 42% of US fast-food hamburger business
- Consistency of food
- Successful items: Fries, Happy Meal, Big Mac, Egg McMuffin, Promotions
- Overseas market
- Balance sheet position
WEAKNESSES in the SWOT analysis of McDonalds
- Declining market share
- Weak product development
- Disgruntled franchisees
- Quality and taste of products
- Slowed revenue and income growth
OPPORTUNITIES in the SWOT analysis of McDonalds
- International expansion
- Only serving 1% of the world’s population
- Growing dining-out market
- Joint ventures with retailers (e.g. supermarkets).
- Consolidation of retailers likely, so better locations for franchisees.
- Respond to social changes – by innovation within healthier lifestyle foods. Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning.
- Use of CRM, database marketing to more accurately market to its consumer target groups. It could identify likely customers (based on modelling and profiles of shoppers) and prevent brand switching.
- Strengthen its value proposition and offering, to encourage customers who visit coffee shops into McDonalds.
- The new “formats”, McCafe, having Wifi internet links should help in attracting segments. Also installing children’s play-parks and its focus on educating consumers about health, fitness.
- Continued focus on corporate social responsibility, reducing the impact on the environment and community linkages.
- International expansion into emerging markets of China and India.
THREATS in the SWOT analysis of McDonalds
- Mature/overstored industry
- Strength of competition
- More health-conscious consumers
- Changing demographics
- Fluctuation of foreign exchange rates; Economies
- Recession or down turn in economy may affect the retailer sales