SWOT ANALYSIS OF Mc DONALDS
Mc Donald is one of the leading or we could say number 1 fast food chain in the world. It has achieved this top position and has beaten its various competitors just because of its ‘Just In Time’ strategy. As per Fortune Magazine 2005, Mc Donald is the best place to work specially for minorities. Because it does not required well educated staff or cook.
1. Largest Food Chain: Mc Donalds is the largest food chain specifically in hamburgers all over the world. It is serving daily 69 million customers around the globe. 2. Geographical Presence: McD is present in almost 119 different countries with 33,500 restaurants and is the 6th most valuable brand over the globe. 3. Locally adapted food menu: As Mc D is present in so many countries having different and diversified cultures, where the eating habit and taste is very different in comparison to US market. Thus McD ability to adapt its menu is one of the major strength. Eg. Aloo tikki burger in India 4. Franchisee: McD enters into different market through the concept of franchising. In such markets almost 80% of chains are opened through independent franchisees. Through this strategy McD saves more time in perfecting its serving system and advertising campaigns. 5. Partneship: McD uses the raw material of famous brands only like Heinz Ketchup, and offers other brands such as Coca Cola. Through which it generates more revenue and stand in the market. 6. Advertising budget: Mc Donald is spending around 2$ billion in advertising campaigns, which create competitive edge over the competitors like subway. WEAKNESS
1. Junk Food: Burgers are known as junk food. As McD caters to children market where eating junk food leads to obesity. McD is known for its unhealthy menu, which included oily patties, coke, French fries that leads to obesity. 2. High Employee Turnover: McD gives lesser pay to its employees. As the Mc D job requires less skilled employees, because of which they higher less skilled staff and gives less salary which creates frustration among employee and they are force to leave the job. 3. Low Differentiation: McD is still counted in Fast food chain, where others companies have also jumped in like Jumbo king, Subway etc. McD is not able to differentiate itself from other fast food chains; it is focusing more on Lessing the price instead of adding some additional features. OPPORTUNITIES
1. Demand for Healthy Food: Now a day the customers are more conscious towards their health. In such scenarios Mc D should introduce new varieties=s in menu which has more nutritive value. 2. Home delivery: Most of the global fast food chains are entering into Home delivery strategy. In fact customers are more interested for Home delivery of their orders as its saves their time and petrol. But still McD has not full flegedly started the concept of home delivery 3. Remodeling: Mc D has redesigned its logo and restaurant in 2006 and has applied the changes in the restaurants, where they have 8-9% higher market share. Thus Mc D should remodel all its restaurants and practices as soon as possible. 4. Targeting new Customer Groups: Till date Mc D is catering to youngster crowd, it should include new menu cards, varieties, concepts so that it can attract other customer group too. THREATS:
1. Too many Competitors: In developed countries there are too many fast food retail chains. Eg KFC, Jumbo King, Subway, Piza hut etc. 2. Changing Trends: Due to so many campaigns by government and NGO’s towards fight against obesity, customers are becoming more health conscious. 3. Local Fast food chains: the trend has changed; people like to eat outside home. They want more varieties but in their local taste. The local fast food chains are best options where the customers various demand can be fulfilled with their own local taste. 4. Currency Fluctuations: As the firm is operating in so many countries...
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