The potential decision of McDonald's to eliminate their $1.00 menu is going to have a significant shock to their business since this menu is a real favorite with their customers.
SWOT (strengths, weaknesses, opportunities, threats) analysis is a tool that should allow us to understand better the impact of this decision and to anticipate the future direction of their business.
1. The greatest strength was creating an image in the minds of the people and introducing them to the fast food culture. Fore many people fast food is equivalent with McDonalds.
1. They created a corporate symbol and their advertisement campaigns were highly successful in establishing the brand image and logo for the millions of customers.
2. McDonald’s product value is also its greatest strengths. Customers know what to expect when they walk into a McDonalds store. It gives great emphasis to human resources by satisfying the customers. The change in the menu is not going to deteriorate the customer expectations.
3. The decision to eliminate their $1.00 menu is going to have an immediate financial effect: the company is going to stop loosing money with this product.
4. One of the secret of any marketing strategy is to reach the target audience. And here again the target audience should be chosen carefully. To target new audience involves the innovation aspect wherein new products line up to catch up with the new trends and tastes of the people. McDonald’s diversity into other new business ventures can also be considered as its strengths.
5. Customer trends change and so does their choices. People are generally tired of the same product that they had... [continues]
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