SWOT Analysis for McDonald’s

Sample SWOT Analysis for McDonald’s Fast Food

Strengths for McDonald’s

Effective new product development process
Good understanding of the market
Beneficial economies of scale
Effective sales and service culture
High share of target markets
Broad product range
Great value products
Attractive store design/layout
Broad sales area coverage
Global coverage and reach
Highly convenient locations
Strong value proposition
Broad market appeal
Clear brand associations
Strong brand equity
Strong international brand
Digital marketing expertise
Strong relationships with online “influencers”
Good bargaining power with suppliers
Strong franchisee relationships

Weaknesses for McDonald’s

Poor customer database information
Mixed quality staff
Undifferentiated products
Many negative attitudes to the brand
Seen as being disinterested in corporate social responsibility
Broad competitive set
Dynamic competitive landscape
Low barriers to entry to the market
Many emerging new entrants
Many substitute competitive products
Strong existing competitors

Opportunities for McDonald’s

Leverage our big data
Further develop our sales/service team
Develop and implement a loyalty program
Improve offering to increase net promoter scores
Map out and target the steps in the customer journey
Add increased product augmentation
Add more product line extensions
Broaden our product range to eliminate product gaps
Develop higher quality products to target new segments
Streamline product features to reduce costs
Acquire a competitor’s successful brand
Improve attitudes towards our brand
Increase our corporate social responsibility image
Pursue co-branding opportunities
Acquire key competitors
Aggressively challenge substitute offerings
Demand for home delivery services
Promote an “environmentally-aware” corporate image
Use environmental issues to reduce our cost structure

Threats for McDonald’s

Being too slow to adapt to change
High staff turnover
Consumers becoming more demanding
Reaching market saturation
Weakening customer satisfaction
New products cannibalizing our existing sales
Possible new product failures
Inability to grow the customer base long-term
Increased market fragmentation
Increased media fragmentation
Poor publicity in the media
Weakening value proposition
Limited corporate social responsibility brand image
Negative attitudes to the brand
Deteriorating franchisee relationships
Competitors introducing better/improved products
Competitors providing more “value add”
Competitor’s strengthening their brand
Disruptive new competitors
Economic downturn

Summary SWOT for McDonald’s (image)

SWOT analysis for McDonalds

McDonald’s Strategic History

Ray Kroc wanted to build a restaurant system that would be famous for providing food of consistently high quality and uniform methods of preparation. He wanted to serve burgers, fries and beverages that tasted just the same in Alaska as they did in Alabama.

To achieve this, he chose a unique path: persuading both franchisees and suppliers to buy into his vision, working not for McDonald’s but for themselves, together with McDonald’s. He promoted the slogan, “In business for yourself, but not by yourself." His philosophy was based on the simple principle of a 3-legged stool: one leg was McDonald’s franchisees; the second, McDonald’s suppliers; and the third, McDonald’s employees. The stool was only as strong as the three legs that formed its foundation.

“If I had a brick for every time I’ve repeated the phrase Quality, Service, Cleanliness and Value, I think I’d probably be able to bridge the Atlantic Ocean with them." – Ray Kroc

Source: McDonald’s History