McDonald’s SWOT || SWOT Analysis of McDonalds

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McDonald’s SWOT || SWOT Analysis of McDonald’s

 

McDonald’s is a renowned fast-food chain in the world. This American-based brand was established in 1940 by Maurice and Richard. After a few years, it was transformed into a quick-growing fast-food chain. Today, McDonald’s is operating with thousands of outlets across the world. It is also considered the biggest provider of toys because they give striking toys with every meal. In this editorial, we will talk about McDonald’s SWOT (strengths, weaknesses, opportunities, and threats). In this way, you can understand its working and competitive advantages. Let’s begin.

 

Company Name: McDonald’s

Founded by: Maurice and Richard McDonald

 CEO:  Chris Kempczinski (Nov 4, 2019–)

 Year established:  April 15, 1955, San Bernardino, California, United States

 Headquarter:  Chicago, Illinois, United States

Industry: Fast food restaurant

Products: Hamburgers | Chicken Coffee | French fries | Breakfast | Soft drinks | Salads | Desserts | Milkshakes | Pancake | Wraps

Number of location: (2019) 38,695 restaurants

Served Area: Worldwide

Number of Employees (2019):  205,000

Type: Public

Annual Revenue (2019): US$ 21.08 Billion

Profit (Net income) (2019): US$ 6.00 Billion

 

Subsidiaries: McCafé, McDonald’s France, McDonald’s Canada, MORE

 

Products & Services:   Coffee | Handcrafted Beverages | Fresh food | Non-food items | Packed foods | Mugs and accessories | Gifts

 

McDonald’s SWOT | SWOT Analysis of McDonald’s

Strengths of McDonald’s:

 

To understand the strengths of McDonald’s, you need to look at some factors that ensured the company’s development and success.

• Most Effective Brand:

McDonald’s holds a prominent position in the world’s ten valuable fast-food brands. That’s why it is among the most favorite and profitable brands in the world. This thing has increased its brand worth and reputation.

• Delicious Food:

The main strength of McDonald’s is its delicious and high-quality products. Its French fries are one of the tastiest fries in the food industry.

• Real Estate Company:

Most people don’t know about McDonald’s real estate business. They offer not only fast food but also premium locations around the world. It has a total of 37855 outlets in 120 nations. 35085 are franchises and the remaining are corporation-operated restaurants. Their working style is slightly different from other companies as they won’t provide their name, recipes, ingredients, and act as a landlord when they work in the form of a franchise.

• Innovative Steps:

McDonald’s is investing in technology in order to meet with future aspects. They also introduce self-service with kiosks and phone orders. These kinds of services are very advantageous for McDonald’s.

• Technology Acquirements:

McDonald’s recent acquirement of Dynamic Field is a new step to technological advancement. This acquisition helps McDonald’s to enhance their consumer experience with personalized offerings.

• Maximum Brand Worth:

In 2018, the total brand worth of McDonald’s was 126 billion dollars. This figure was very insane and no one was even closer to this figure. With this statistic, it is the major strength of McDonald’s in the fast-food industry.

• Enhanced Health Practices and Quality Control:

As we talk about the quality and taste of McDonald’s products, but its quality measures are its major strength point. The company ensures full safety measures and quality control before purchasing ingredients from the third-party. They also decrease the use of antibiotics that are harmful to users. This strategy is appreciated by users and health experts.

• Leading QSR (Quick-Service Restaurant):

McDonald’s is also considered as QSR (Quick-Service Restaurants) in the US. They also lead the chart in this matter with 38 billion dollars.

 

McDonald’s SWOT | SWOT Analysis of McDonald’s

Weaknesses of McDonald’s:

 

To understand the weaknesses or shortcomings of McDonald’s, we have mentioned some important factors as the following:

• Franchising Model:

As we know, McDonald’s has the best worldwide franchising mode. But with a wide range of franchising, this thing also causes some specific risks. These risks are mismanagement, consumer dissatisfaction, and financial disability. The heavy dependence on the franchise model can affect the brand name and fan-following.

• Supply Chain Disruptions:

McDonald’s is one of the leading and busiest food brands in the world. But it also faces supply chain issues and interruptions. This thing can cause the unavailability of the products that are dangerous for its working and operations. This thing can lead to a decrease in the company’s revenue and profitability.

• Lack of Worker Happiness:

In recent times, McDonald’s has experienced severe criticism from its workers. They were demanding in the increment of their wages. These protests and backlash damaged the company’s repute.

• Loss of Breakfast Menu Charm:

It is a fact that the company’s breakfast sales were unbeatable in 2018. But after that, the company reported a massive fall down in their breakfast sales. This is due to the stiff competition from the competitors as they provide better products and services.

• CEO Got Fired:

1n 2019, Steve Easterbrook was got fired from the CEO seat due to a consensual relationship with a worker. As it is a violation of the company’s policy, but it affects the brand name.

 

McDonald’s SWOT | SWOT Analysis of McDonald’s

Opportunities for McDonald’s:

 

In this section, you will learn about the changes and opportunities of McDonald’s. These factors really help the brand to enhance its working, performance, and growth structure.

• Affordable Deals:

McDonald’s introduced its 1,2, and 3 dollar deal in 2018 which was appreciated by the customers. These deals are worth-conscious and resulting in the sales and revenues of McDonald’s.

• New Products:

McDonald’s should focus on further technological advancement and innovative products. They need to introduce new products and items on their menu to attract customers instead of establishing new restaurants or outlets. McDonald’s was also served exclusive beverages to their customers in 2018 which is quite interesting and valuable for users. This thing goes viral and resulting in more profits for the company. They should continue this kind of deals and offers in different regions according to their cultural and geographical conditions.

• Worldwide Extension:

McDonald’s is effectively working in all sectors of the US, but it faces difficulty in its international operations. In addition, it has the ability to grow its working and outlets in different regions of the world. These markets can be useful for McDonald’s in terms of market share and profits.

• Reconstructing The Brand Reputation:

As most people are following a healthy lifestyle and reducing the consumption of junk food, but McDonald’s can use this for its favor by providing customized and healthy products to their loyal customers.

• McDelivery and Online Orders:

McDonald’s is working with UberEats and Door dash to provide online delivery in the US. This kind of approach can increase its sales and reach every corner of the world.

 

McDonald’s SWOT | SWOT Analysis of McDonald’s

Threats of McDonald’s:

 

In this sector, we will discuss McDonald’s competitors and threats that can decrease its brand worth and profitability. That’s why it is imperative to tackle these threats.

• Uncertain Ventures on Technology Programs:

Technological advancement has proven beneficial for McDonald’s, but this kind of investment in innovation can be risky. As most people don’t have enough resources to use these advanced features, then it can cause a big threat to McDonald’s to lose its profit game.

• Severe Competition From Rivals:

There are several competitors of McDonald’s such as Burger King, KFC, Subway, and many more. But the biggest rival of McDonald’s is Check-fil-A in QSR (Quick-Service Restaurant) area.

• Cultural Threat:

McDonald’s is a famous worldwide fast-food chain, but there’s always a chance to face cultural threats from different regions which can damage the brand name. For example, McDonald’s experienced huge backlash from various Muslim countries for using ‘’haram’’ ingredients in their products. These controversies and scandals are not beneficial for the company at all.

• Modern Fast Food Trends:

McDonald’s is still considered outdated in its products and menu. They tried to follow and compete with the latest trends but this thing didn’t work for them. That’s why they are still struggling in this matter.

• Invariable Environmental Worries:

McDonald’s also facing severe pressure to enhance its working and nature-friendly environment. They also faced criticism from environmental activists over the use of plastic bottles and straws.

 

Conclusion:

McDonald’s is one of the leading fast-food brands in the industry. It has loyal customers and fan-following locally and internationally. But they need to look at several other factors to boost their operations and working as we mention above.

 

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