McDonald’s Corporation SWOT Analysis. Business & Marketing Case Study

McDonald’s Corporation SWOT Analysis
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McDonald’s Corporation SWOT Analysis
McDonald’s Corporation is among the biggest players in the fast-food market. In particular, the firm has developed a good reputation by providing high-quality products and services. Due to the company’s renowned brand name, the growth and expansion of fast-food companies were called “McDonaldization.” However, for any organization, building a reputation such as that of McDonald’s Corporation does not come easy. At some point, the company has to change its production and marketing strategies to remain highly competitive in its respective industry. For instance, the sales of McDonald’s Corporation have declined due to the change in the customer’s taste and lifestyle. By analyzing the strengths, weaknesses, opportunities, and threats (SWOT), one will understand how McDonald’s Corporation can adapt to the new market and prevent its sales from plummeting further.
Strengths refer to the core competencies or competitive advantages that enable a firm to be distinct from others. McDonald’s Corporation has a renowned brand name worldwide. Since the company started its operations in 1954, its primary aim has been to meet customers’ needs. McDonald’s Corporation began as a small restaurant and has now grown and expanded to numerous parts of the world. Specifically, the form has over 36,000 outlets located in about 100 nations (McDonalds.com, n.d.). The production of quality food products and effective promotion strategies are the primary factors that have contributed to the growth of the firm. The second strength of McDonald’s Corporation is a strong consumer brand loyalty. Customers worldwide trust the products from the company and always return to buy more. The fast-food firm offers various products to its clients and continues to upgrade its menu regularly. Some of the commodities include coffee, beverages, and beef burgers. The third strength of the company is a competitive pricing strategy that enables it to enjoy a broad market segment. McDonald’s Corporation has a menu that suits different buyers from students to working-class individuals.
Weaknesses entail the firm’s limitations or hindrances to growth and expansion. These might be the things affecting the sales of McDonald’s Corporation adversely. One of the primary weaknesses of the firm is a limited range of vegetable products (Krull, 2018). Currently, people’s lifestyles have changed entirely. Many individuals have realized that fast-food products contribute to unhealthy conditions such as obesity, which causes chronic diseases such as diabetes, cancer, and heart illnesses. As such, the rate of consumption of burger and other meat products has declined, and they are the primary products provided by McDonald’s Corporation (The Economist, 2015). Another weakness is that the majority of people consider red meat as unhealthy. Moreover, in the recent past, the market share of McDonald’s Corporation has been declining, which had adverse effects on the firm’s sales. The competition in the food market is stiff, and any player th...