Explain what is SWOT

2.1 Strength
In the article by Howard Cranford (May 2013), McDonald’s possesses good market share. It has the largest fast food market shares in the world with outlets from over 100 different countries.

Heavily invested in advertising, McDonald’s spends almost $2 billion in advertisements yearly. Customers are aware of McDonald’s latest promotion and products from TV commercial, leaflets and signboards.

In addition, McDonald’s has a superior reputation. Its brand recognition is valued at $40 billion. Every age group has heard of and knows about McDonald’s.

Furthermore, it is highly owned by independent franchise. More than 80% of McDonald’s’ restaurants are operated by franchise, allowing the restaurants to improve their service systems.

Lastly, McDonald’s targets at children by serving a vast variety of kids’ meals which are complimented with different popular toys. Many restaurants also have a segmented play area for children.

2.2 Weakness

Howard Cranford (May 2013) has also shared the following weaknesses of McDonald’s restaurants.

Unhealthy food menu is a weakness as McDonald’s main menu is burgers, fries and coke. McDonald’s is said to disrupt the eating habit of people especially the youngsters.

Another weakness of McDonald’s its negative publicity as it has always received negative remarks for its workers’ bad service, creating environmental problems such as using environmentally unfriendly materials for its packaging and infringing animal rights. For example, using chickens from chicken farms whose reputation on treating their animals is questionable.
Low differentiation is yet another weakness. Other brands of fast food restaurants such as Burger King and Wendy’s serve about the same type of menu as McDonald’s.

2.3 Opportunity

Howard Cranford (May 2013) commented that McDonald’s has tried to expand its customers base by entering into new and popular products. McCafe offers premium coffees, smoothies and cakes to attract more customers and to retain its existing customers.

New, healthier food items have been incorporated into McDonald’s menu in a bid to attract more consumers. Corn cups, apple dippers and apple juice have been introduced as a healthier alternative to the unhealthy fries and soft drinks. In the future, McDonald’s can consider serving baked potatoes, cherry tomatoes or even whole meal biscuit for the healthy-conscious consumers.

McDonald’s can consider expansion into foreign markets. Although McDonald’s is the world largest fast food restaurant, some countries like Vietnam, Jamaica and Yemen still do not have McDonald’s in their countries.

It can also consider expanding the area of its home meal delivery service. Most area in Singapore has McDonald’s delivery service but countries like UK still does not have a delivery service.

2.4 Threats

Increasing societal focuses on healthy eating may be a threat to McDonald’s (Howard Cranford, May 2013) as more people increasing more health conscious of eating healthy food which could in turn, reduce the demand for fast food.

Competitor pressure in developed countries is another threat. There are already many fast food restaurants like Burger King & Wendy’s in developed countries. It is very difficult for McDonald to achieve large financial growth in this overcrowded market.