McDonald's SWOT analysis
SWOT Analysis:
The internal audit:
1. Strengths:
The internal audit:
1. Strengths:
Strong brand name, image and reputation.
The world’s largest restaurant chain in terms of revenue.
| Rank | Brand Name | Locations |
|---|---|---|
| 1. | Subway | 44,717 |
| 2. | McDonald's | 36,899 |
| 3. | Starbucks | 25,085 |
| 4. | KFC | 20,604 |
Economies of scale.
The company has huge buying power.
Market power over suppliers and competitors.
Due to its size, McDonald’s can exercise its market power over suppliers by requiring lower prices from them.
The company clearly demonstrates this with Coca Cola.
Because of an agreement between McDonald’s and Coca Cola, no other restaurant chain can sell Coca Cola drinks for lower prices than McDonald’s.
Click on the picture for a McDonalds secret.
McDonald’s restaurant network allows the chain to reach more customers than most of its rivals could reach.
According to the Company’s CEO, in five of its largest markets, 75% of the population live within 3 miles of a McDonald’s restaurant.
Wide audience reach does not only help the company to target more customers and increase brand awareness, but also to introduce new services, such as home delivery.
According to the Company’s CEO, in five of its largest markets, 75% of the population live within 3 miles of a McDonald’s restaurant.
Wide audience reach does not only help the company to target more customers and increase brand awareness, but also to introduce new services, such as home delivery.
Specialised training for managers.
McDonald's is very serious about training managers. The company has its own programme to train managers at what is called Hamburger University.
Innovation in technology and new products.
Good marketing strategies.
2. Weaknesses:
Unhealthy food image.
McDonald's has been impacted by negative press such as the documentary "Supersize Me" by Morgan Spurlock.
Food high in fat, salt and sugar.
Unbalanced meals.
Although McDonald's tries to update its menu by using healthier options, McDonald’s meals are still unbalanced.
High employee turnover rate.
Environmental issues.
Depletion of rain forests to produce beef.
Use of single use plastics.
Litter.
Dissatisfied Franchisees.
Franchisees are beginning to become very dissatisfied with the fees that McDonald’s are forcing them to pay.
Your turn:
The external audit:
The external audit:
3. Opportunities:
