SWOT Analysis of McDonald's: A Case Study

This assignment is a case study on the SWOT analysis of McDonald's, one of the world's largest fast-food chains. The report examines the company's internal strengths and weaknesses as well as external opportunities and threats that affect its performance in the market. It analyzes the factors that contribute to McDonald's success, such as its brand identity and innovative products, while also highlighting potential weaknesses like high prices and unhealthy food options. Additionally, it explores opportunities for growth through diversification and healthy product offerings, but also notes threats from competitors and legal issues related to product quality.

ESSAY

In the competitive environment, the multinational companies are conducting the research
to analyse the ways through it can survive in the market. The firms are also analysing the
demand of the customers for the development of their products. It has been recognised that the
organisations are facing high competition as there are various substitute companies available in
the market. There are various firms operating in the service industry like McDonald, Burger
king, Starbucks etc. and achieved a continuous growth in the market. Continuous growth in the
economy has changed the life style and demand of people living the countries across the world.
In this context, SWOT analysis of the McDonald is accomplished to describe the understanding
of internal characteristics and external factors such as competitors, consumers, market
environment, etc. McDonald is a well-known fast food chain which provide a wide variety of
products according to the preference of their customers. It has achieved a continuous growth in
the market by diversifying the products from its competitors. It has applied various strategies to
maintain the position and expand its business in the market. In this report, complete analysis of
McDonald has been done to recognise how it has achieved continuous growth in the market?
The strengths indicate the capabilities and power of the company to survive in the
competitive global market. The research has determined that the McDonald operates as second
largest fast food restaurant chain serving the customers in several countries around the globe as
compared to its competitors. One of most important strength of the McDonald is brand identity
which differentiates the company from the other substitutes companies operating in the market
(McDonald's SWOT analysis, 2017). The company has the capabilities to produce the innovation
and diversified its products so that it can satisfy the customers in the market. The main strength
of the McDonald is that it provides the uniform mix of the products to attract the local customers.
McDonald also has some weaknesses which made an adverse impact on the sale of its
products and provided an opportunity to competitors to excel. The prices of the products of
McDonald is high as compared to the substitute products of other companies which has made
customers to prefer other substitute products (Görener, Toker and Ulucay 2012). McDonald
produces fast food products which are most preferred by the customers because these products
are not appropriate for the health of the people. This happens to be another major weak point for
the firm.

Analysis of the company has determined that there are several opportunities available for
the McDonald to achieve its desired position and increase its revenue in the market. There is a
rapid increase in the income level of the people and has provided the opportunity to them to
target and provide the products as per the preference of the customers. The company has an
opportunity to increase its sales by providing the healthy products to its customers. The
Innovation in the products will help the company to attract the consumers and helps in increasing
the brand image.
There are some threats as well which are faced by the McDonald and it has implemented
various measures to reduce their effect on the business (Simoneaux and Stroud, 2011). The firm
has major threat of legal issues from the government regarding quality of its products, as they are
not good for the health of the people. It has fear of competitors also as the prices of the products
of competitors are less which might highly influence price sensitive customers. Hence, it has
been recognised that the company has to formulate the strategies to overcome these threats for
the achievement of desired position in the market.

REFERENCES
Books and Journals
Görener, A., Toker, K. and Ulucay, K., 2012. Application of combined SWOT and AHP: a case
study for a manufacturing firm. Procedia-social and behavioral sciences, 58, pp.1525-1534.
Simoneaux, S.L. and Stroud, C.L., 2011. SWOT analysis: The annual check-up for a business.
Journal of Pension Benefits: Issues in Administration, 18(3), pp.75-78.
Online
McDonald's SWOT analysis, 2017. [Online]. Available through: <
https://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.html
> [ Accessed on 17 August 2017]