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SWOT Analysis of McDonalds

Introduction

In 1954 a multimixer salesman Ray Kroc visited a restaurant owned by the McDonalds brothers and he was impressed with their speed of operation and their menu , which although limited focused on burgers, drinks and fries. The McDonalds brothers were looking for an agent to help them expand their business and Ray Kroc helped create the mcdonald's restaurants we know today.

Diagram showing a summary of a SWOT Analysis for McDonalds — This diagram summarises a SWOT Analysis for McDonalds

Strengths

Strong brand name. McDonalds has been around since 1954 and has established a strong brand name through effective promotion and quality fast food.
Global brand value of about 97.7 billion U.S. dollars according to statistica.com
Strong brand loyalty. Consumers have loyalty for McDonalds because of their product variety, quality and strong brand presence globally.
Large product range. McDonalds have a large product range from, burgers, fries, drinks and desserts.
Very effective promotional strategy that drives home the message of Mcdonalds of being, quality but quick food.
Pricing strategy that caters for a wider market segment. McDonalds have a value menu aimed at price sensitive buyers e.g. students and Mcdonalds often introduce a limited time premium menu aimed at those who can afford to spend a little more.

Weaknesses

Limited range for vegetarians and vegans.
Long queues during busy period.
Food considered unhealthy
No alternative to French fries within the UK.
Animal cruelty issues
Breakfast finishes too early in some countries resulting in loss of sales

Opportunities

To sell a wider option of food aimed at the vegetarian market. The Vegan burger tested in Finland was very successful so there is an opportunity to expand it internationally.
Greater range of fish related products.
Introduce speciality fries like sweet potatoes fries as an option to potatoes fries.
Introduce McDonald Café within the UK to tap further into the coffee market.
Introduce a greater range of coffee's such as decaffeinated drinks

Threats

From competitors such as Subway, KFC and Burger King.
Changing consumer diets influenced by governmental campaigns to stay healthy.

Conclusion

McDonalds will continue to move from strength to strength as a fast food retailer providing they continue to capitalise on the strengths and take advantages of the opportunities that arise from their operating environment.

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