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McDonald's SWOT Analysis

Here is a detailed SWOT analysis of McDonald's covering strengths, weaknesses, opportunities and threats.

Published by MBA Skool Team in Food & Beverages category Last Updated: May 20, 2023Read time:

McDonald's Strengths

  1. McDonald's is a hugely popular brand name and high brand loyalty
  2. Variety of products offered by McDonald's including burgers, wraps, nuggets etc
  3. Hygenic food preparation and quick service is provided to the customers
  4. McDrive Drive-in service for motorists and car owners is an extremely innovative way of conducting fast food business
  5. McDonald's has excellent advertising and marketing which makes it a top of the mind brand
  6. Happy meal offered by McDonald's is great attracting children especially with the toys
  7.  McDonald's is present across the world at more than 38000+ locations in more than 100 countries
  8. More than 1.5 million are working with the company, including the franchisees
  9. McCafe opened by McDonald's offers beverages to accompany the food
  10. The brand has been actively involved in sponsorships of global events
  11.  McDonald's has revolutionized the market with local products like McAloo Tikki for India, Mc Arabia for Middle eastern countries etc.
  12. The company has been recognized as one of the most valuable brands in the world
  13. McDonald's drives its visibility through celebrity endorsements, global event sponsorships, donations, charities etc.

Above are the strengths in the SWOT Analysis of McDonald's. The strengths of McDonald's looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

McDonald's Weaknesses

  1. Fast Food menu is served at McDonald's which is not highly preferred by health conscious people
  2. McDonald's has often been involved in lawsuits regarding environment, animal rights etc.
  3. The menu is limited for a lot of customers and hence they might lose out on customers

These were the weaknesses in the McDonald's SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

McDonald's Opportunities

  1. McDonald's can improve on the existing home delivery service
  2. Get more innovative products for the vegan customers
  3. With newer emerging markets, McDonald's can venture into these markets to grow the brand
  4. Can introduce more menu items to support the existing items

Above we covered the opportunities in McDonald's SWOT Analysis. The opportunities for any brand can include prospects of future growth.

McDonald's Threats

  1. Threat from other eating joints/restaurants, which can reduce McDonalds' market share
  2. Health conscious people avoiding fast food
  3. Being a global brand, the operations of McDonald's can be affected by recession, fluctuating economies, pandemic etc.
  4. Constant vigilance from food regulatory bodies can affect business operations
  5. Food like burgers have become generic in nature and a lot of options are available in the market

The threats in the SWOT Analysis of McDonald's are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the McDonald's SWOT analysis.

About McDonald's

The table below gives the brand overview along with its target market, segmentation, positioning & USP

McDonald's Overview
Parent Company

McDonald's Corporation

Category

Fast food eating joints

Sector

Food & Beverages

Tagline/ Slogan

I'm Loving it

USP

McDonald's offers excellent food quality especially burgers and great quick service

McDonald's STP
Segmentation

People willing to have a hygienic and delicious meal at a restaurant

Target Market

Children and youth from middle and upper class

Positioning

McDonald's is a fun filled fast food joint the entire family to enjoy


This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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