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Michael T Mahoney
Mc Donalds Weakness
The food industry is really saturated. As a result of this, MacDonald’s has to deal with the prospect of looming market saturation, which could make it difficult to add new outlets. The market is forecast to grow by around 2% per year. There is also an increasing price competition driven by too many competitors, which reduces the company’s ability to increase revenue. Nevertheless, the swift of the company’s focus from a value menu to a more diverse one has recently limited the negative effect of the intense price competition that was traditionally taking place among the industry leaders. Lack of product innovation is another weakness of McDonalds. The last break-through for McDonald’s was the Chicken McNugget in 1983, but again the company’s new strategy seems to have successfully dealt with the problem through the popularity of its new salads and other new products. • It uses advertising that mostly targets children.
• High employee turn-over.
• It has yet to accomplish going on the trend of organic food. • Price competition with the competitors resulting in low revenue. • Lack of innovative products.
cDonald¡¯s has been extremely successful, there are still some weaknesses that exist within the company. Those weaknesses include past product and promotion concepts, performance of international divisions, and it¡¯s U.S. expansion strategy. For McDonald¡¯s, the creation and implementation of new products costs millions of dollars. These millions of dollars have been spent on products such as the Arch Deluxe...