Mcdonald and Its Competitors's Swot
Introduction
The story of McDonald’s started in the early 1940s when two brothers, Dick and Mac McDonald, and Raymond Kroc founded the McDonald’s Corporation with the company motto ‘Quality, Service, Cleanliness and Value’. Most of McDonald’s restaurants are operated by franchisees or by affiliates, some are operating under joint-venture agreements (www.mcdonalds.com). Nowadays McDonald’s is one of the most valuable brands globally and used to be the world’s largest restaurant chain, before Subway surpassed it in 2011 (Jargon., 2011). In our paper, we are going to focus on McDonald’s in the US, analyze the internal and external factors, which affect McDonald’s as well as its three top brand competitors. Then we propose an outlook for what the corporation should do to sustain their market leadership in the U.S. when facing the intense competition of the fast-food industry.
SWOT MATRIX of McDonald’s Organizational factors
Industrial factors | Strengths (S)
1. Brand reputation
2. Convenience
3. Customer loyalty
4. Product innovation
5. Organizational structure | Weaknesses (W)
1. Unhealthy
2. Numerous lawsuits
3. Confusion over brand identity leading to product failures | Opportunities (O)
1. Increasing eating out trend
2. Growing market for hot drinks
3. Growth of franchise operated restaurants | SO Implications
1,3-1 Maintain brand reputation and customer loyalty
4-2 Expand the McCafé line of hot drinks
5-3 Increase franchises through existing developmental license strategy | WO Implications
2,3-3 Must maintain brand identity and reputation to gain more franchises | Threats (T)
1. Rise in commodity prices
2. Growing trend towards healthier foods
3. Increased legislation towards fighting obesity | ST Implications
1-1 Increase purchasing discounts to maintain reputation as affordable.
4-3,1 provide healthier food to stop further legislation as well as gain more customers | WT Implications
1-2,3 The unhealthy food
The story of McDonald’s started in the early 1940s when two brothers, Dick and Mac McDonald, and Raymond Kroc founded the McDonald’s Corporation with the company motto ‘Quality, Service, Cleanliness and Value’. Most of McDonald’s restaurants are operated by franchisees or by affiliates, some are operating under joint-venture agreements (www.mcdonalds.com). Nowadays McDonald’s is one of the most valuable brands globally and used to be the world’s largest restaurant chain, before Subway surpassed it in 2011 (Jargon., 2011). In our paper, we are going to focus on McDonald’s in the US, analyze the internal and external factors, which affect McDonald’s as well as its three top brand competitors. Then we propose an outlook for what the corporation should do to sustain their market leadership in the U.S. when facing the intense competition of the fast-food industry.
SWOT MATRIX of McDonald’s Organizational factors
Industrial factors | Strengths (S)
1. Brand reputation
2. Convenience
3. Customer loyalty
4. Product innovation
5. Organizational structure | Weaknesses (W)
1. Unhealthy
2. Numerous lawsuits
3. Confusion over brand identity leading to product failures | Opportunities (O)
1. Increasing eating out trend
2. Growing market for hot drinks
3. Growth of franchise operated restaurants | SO Implications
1,3-1 Maintain brand reputation and customer loyalty
4-2 Expand the McCafé line of hot drinks
5-3 Increase franchises through existing developmental license strategy | WO Implications
2,3-3 Must maintain brand identity and reputation to gain more franchises | Threats (T)
1. Rise in commodity prices
2. Growing trend towards healthier foods
3. Increased legislation towards fighting obesity | ST Implications
1-1 Increase purchasing discounts to maintain reputation as affordable.
4-3,1 provide healthier food to stop further legislation as well as gain more customers | WT Implications
1-2,3 The unhealthy food
References: Jargon, J. (2011) ‘Subway runs past McDonald’s Chain’. The Wall Street Journal. http://www.mcdonalds.com/us/en/home.html http://www.leadershippinnacle.com/articles/productpositioning.html http://www.freeswotanalysis.com/fast-food-companies-swot-analysis/18-subway-swot-analysis.html