Comprehensive McDonald’s SWOT Analysis & Competitors

We offer all "help with my paper" services e.g. Custom essay writing, Dissertation writing help, Research paper writing, and Term paper writing services at affordable prices. We cover all your paper help needs 24/7.
Get started Order in Chat
97.5
Orders delivered on time
120
Academic disciplines covered
4.9/5
Average rating

SWOT analysis is a framework in strategic management that helps the management evaluate a company’s competitive position and develop a strategic plan. The framework analyses both internal and external strategic factors that affect a company’s current and future business operations. Therefore, to understand and evaluate a McDonald’s competitive position, the SWOT analysis of McDonald’s Company will come in handy in providing a realistic and data-driven look at the strength and weaknesses of the company within the fast-food industry.

mcdonalds swot analysis

In this article, we shall delve into the SWOT analysis of McDonald’s Company, one of the largest food chain companies in the US. The company has grown its capacities to be one of the ideal places for affordable, fast foods. Founded in 1940 by two brothers, Maurice and Richard, as a BBQ joint, the company transitioned to a fast-food restaurant before initiating a franchise and later on a corporation. As of 2021, McDonald’s has grown among the top 10 global brands, with several franchises in countries like Italy, Canada, Germany, Australia, France, the United Kingdom, the Netherlands, and many more. This article aims to explore the latest dynamics in the SWOT analysis of McDonald’s Company, with a close look at how the company makes of its competitive advantage to gain authority in the fast-food industry.

Related: SWOT Analysis of PepsiCo

What is the SWOT Analysis of McDonald’s?

The SWOT analysis of McDonald’s Company highlights the Strengths, Weaknesses, Opportunities and Threats that give direction for the company’s growth. With this analysis, it becomes easier to understand where McDonald’s stands as a company. For instance, the strengths in the SWOT analysis of McDonald’s provide a preview of the strategies used by the company to sidestep the weaknesses. In addition to this, the SWOT analysis of McDonald’s Company also reveals potential threats that the company could encounter and how to manage them. Therefore, for McDonald’s to meet its long-term competitive advantage, the company must address concerns brought forward in the SWOT analysis of McDonald’s company.

What Are the Strengths of McDonald’s?

The strengths in the SWOT analysis of McDonald’s is the first step towards assessing the performance of the company. These strengths show the vital areas that have led the company to a good position within the market. Furthermore, the strengths in the SWOT analysis of the McDonald’s Company have helped the firm become one of the fastest-growing food chains. The strengths of McDonald’s include the following:

  1. Strong brand image, name and reputation
  2. Large market share
  3. Specialized training for McDonald’s managers
  4. Global network
  5. Innovative technology
  6. Strong marketing strategy

McDonald’s Strengths Explained

McDonald’s has managed to establish a strong brand image, name and reputation through effective promotional channels and the quality of food. As of 2021, McDonald’s is the number one fast-food company, with over 31,000 restaurants distributed in almost 120 countries worldwide. With the global widespread of McDonald’s restaurants, the company is now recognized everywhere and has managed to give itself one of the most powerful brand names globally. In addition, McDonald’s investment in an international presence further increases the brand’s strength.

In the food industry, McDonald’s is considered the largest player in both size and global reach. Even when major competitors like Burgers King and Wendy’s were losing the market share back in 2006, McDonald’s has increased its market share steadily. As of 2021, McDonald’s has a 19% market share, with Yum Brands at 9% and Burgers King and Wendy’s at 2%.

In the SWOT analysis of McDonald’s Company, training of managers is considered one of the company’s strengths. As a result, McDonald’s conducts a specialized training program for its managers to create a workforce with a professional management team. The training program, called the Hamburger University, has led to several well-trained managers who enhance company development.

Recommended: Get Human Resource Management Homework Help

mcdonald swot analysis examples

McDonald’s is also winning big because of the integration of innovative technology and brilliant marketing strategies. The company keeps up with the latest technological trends while maintaining a marketing strategy that cuts across its audience. In addition, the company conducts a thorough analysis of market needs resulting in marketing strategies that boost the company’s success.

What Are the Weaknesses of McDonald’s?

In the SWOT analysis of McDonald’s Company, the weaknesses are linked to the company’s market focus, the processes and the products by the company. In this section, the weaknesses highlight strategic factors that limit the company’s performance. McDonald’s main weaknesses include the following:

  1. Dependence on unhealthy food options
  2. Heavy dependence on franchises
  3. Aggressive competition
  4. Interruption in supply chain
  5. Employee Dissatisfaction

McDonald’s Weaknesses Explained

Among the greatest weaknesses of McDonald’s company is that it relies heavily on unhealthy food options. As a result, the company has attracted several controversial claims that have led to resentment from its target market. For instance, Morgan Spurlock created a documentary, “Supersize Me”, illustrating how McDonald’s and other fast-food chains contributed to the societal increase in obesity.

McDonald’s business model also has a heavy dependence on franchises which presents a weakness for McDonald’s. 90% of McDonald’s business depends on franchisees for operations which creates several limitations to the company. Several franchises translate to extra control on the business operations. Therefore, if a franchise does not cooperate, or the franchise’s financial performance is not on track, it creates a problem for the whole company. In other instances, the implementation of the main campaign or the choice of an essential strategy would be tough to make if there is no acknowledgement from any of the numerous franchises. As a result, the overall role of the franchisee becomes crucial and essential.

McDonald’s continues to receive strong competition from major brands such as Burger King and Wendy’s, which leads to the loss of customers who prefer other brands to McDonald’s. Moreover, the lack of employee satisfaction witnessed at McDonald’s has led to a lot of criticism from the employees. As a result, the workers have organized several strikes championing the increase in wages, which affects the company’s reputation.

The interruptions in McDonald’s supply chain are also among the most prevalent weaknesses in the SWOT analysis of McDonald’s Company. A disturbance in the supply chain would lead to a reduction in product availability, which is the heart of business operations in the company. In addition, if any raw material is not delivered as scheduled, an entire production would be affected. In regards to this, if a franchisee would be affected by the disruptions in the supply chain, the disruptions would increase operational expenses, which reduces the net profit and revenue.

What are the Opportunities of McDonald’s?

In the SWOT analysis of McDonald’s Company, the opportunities are dependent on the product mix and global growth. The opportunities of McDonald’s Company highlight the external strategic factors that support the growth of the business. McDonald’s’ main opportunities include the following:

  1. Growth of the fast-food industry
  2. Enhancement of the food menu
  3. Digital marketing
  4. Rebuilding of the brand image

McDonald’s Opportunities Explained

With the increased growth of the fast-food industry, McDonald’s has a chance to increase its business operations to meet the growing market demand. Additionally, more people continue to like fast foods, which increases the market for fast foods. Therefore, McDonald’s should conduct market research that would lead to the capture of more consumers.

Due to the increased demand for healthier food options, McDonald’s can improve its food menu to capture consumers who are more conscious of their health. Even though the company services a balanced menu, there is always room for improvement to capture more consumers. This way, McDonald’s stands a chance to capture consumers who are conscious of health and diet. McDonald’s should recreate its menu to accommodate the current generation for increased customer base and retention of existing customers.

The contemporary world has embraced digital marketing, with several leading brands indulging in digital marketing to increase their market share and revenue. Therefore, to increase its competitive advantage, McDonald’s devotes itself to digitalization. McDonald’s utilizes digital technology by running several social media platforms, including creating blogs and company websites to increase customer engagement. More so, McDonald’s has embraced digital technology for customer engagement, employee engagement, franchise management and supply chain management.

In addition to this, McDonald’s can initiate a strategy to curb the notion that fast food is junk food. This way, the company can rebuild its brands into a company that services customized and healthy offerings alongside the popular fast foods. Such development would easily increase sales, which reflect in the net profit.

What are the Threats of McDonald’s?

In the SWOT analysis of McDonald’s Company, the threats are based on sociocultural trends and aggressive rivalry. These threats also add to the strategic factors that hinder McDonald’s business development. The most common threats to McDonald’s Company include:

  1. Aggressive competition
  2. Campaigns for healthy living
  3. Regulatory pressure
  4. Economic recession
  5. Global pandemic

McDonald’s Threats Explained

With the increased growth of the fast-food industry, several companies are creating aggressive competition for McDonald’s. Companies such as Subway, Wendy’s, Burger King are strong competitors who continue to create a competitive environment in the fast-food industry. Even so, several other local brands continue to grow at a fast rate, thereby creating more competition for McDonald’s. With this rise of competition within the industry, McDonald’s needs to create a customer-centric business model, invest in market research and product invention.

The continuous campaigns for healthier food options pose a threat to McDonald’s and other fast-food restaurants. With the growing number of obesity and heart problems in the USA, major fast-food chains like McDonald’s face a reduction in net profit since consumers are beginning to seek healthier food options. Moreover, regulatory pressure from the government leads to an increase in operational costs, which lowers the net profit. Even when McDonald’s is seeking to venture into new markets, issues arising from higher regulatory pressure may limit the company’s business operations.

Other issues such as economic recession or fluctuation in different countries may deeply affect the business profit. With McDonald’s operating in several countries around the world, a crisis in any economy will impact the company’s general business operations.

The recent pandemic, Covid-19, has had an economic impact on McDonald’s, which has led to the closure of most of its outlets. The closure of outlets affects the brand’s financial standing.

Competitors of McDonald’s

McDonald’s major competitors in the fast-food industry include Burger King, Wendy’s, Yum Brands (Taco Bell, KFC, and Pizza Hut), Chipotle, Starbucks and Subway. These fast-food restaurants continue to pose more aggressive competition towards McDonald’s, which creates a need for more research and development.

What is the USP for McDonald’s?

USP refers to the Unique Selling Proposition of a company or a brand. The USP for a brand highlights the qualities of a brand that sets it apart from its competitors. For example, the USP for McDonald’s is Quality, Service, Cleanliness & Value for money. The company guarantees customers high-quality products, service with a smile, a clean and pleasant environment accompanied by affordability.

Conclusion

The SWOT analysis of McDonald’s Company highlights the company’s strengths, weaknesses, opportunities, and threats. The analysis shows that even though the company has managed to top the list of fast-food brands, there is a need to make vast improvements in growth and development. The rapid changes in the market scenario may affect its sales if they do not seek growth opportunities. The SWOT analysis of McDonald’s Company hints that there is a need to improve employee’s satisfaction and the company’s menu. With these improvements, McDonald’s will remain firm within the fast-food industry.

 

Quality Guaranteed

With us, you are either satisfied 100% or you get your money back-No monkey business

Too much stress and so little time?
Our experts are ready to help
Place order
Why Choose Us
Expert writers
Our rigorous writer selection procedure ensures that only subject-matter experts with master's degrees and higher work on your assignments.
Confidentiality
Your personal information is not shared with any third parties. Neither do writers have access to it.
Affordable prices
My Paper Support is a cheap do my paper service that offers high quality papers at amazing prices. Our customers enjoy lifetime discounts and other offers
Original content
All papers are written from scratch and plagiarism is not tolerated. We scan all papers for plagiarism using Copyscape, Turniting and Safe Assign
Here's why students opt for MyPaper Support
Hiring a professional "do my paper" service is a guaranteed method of balancing academic, family, and professional demands.
Pressed for time
Better grades
Working smart
Confidentiality
Busy Schedule
We understand that balancing professional and student roles is an onerous task. As a result, we have tailored our services to help you balance the increasing demands without tainting the integrity of our education system. Get your paper done within tight deadlines of up to 4 hours.
Speedy delivery. You will receive your
paper before the deadline.
Get started Order in Chat
Raise the GPA
Our paper writers have helped thousands of students improve their GPA and advance professionally. We have a robust QA team which ensures that no error goes unnoticed. Join us and get that Summa cum laude.
Accurate papers. Your work will be based on reputable
sources that provide factual information on the topic.
Get started Order in Chat
Career growth
Why should you stagnate in one position yet you have the required experience to advance professionally? Most students use our do my paper service to obtain the much-needed papers to complement their experience and advance in career.
Ownership of final product You can use the delivered
samples in any way you choose.
Get started Order in Chat
Professional do my paper service
At MyPaper Support, we take your privacy seriously and that why students love us. No writer has access to your personal information. What happens here, stays here..
Value for money. We will return your money
if you are not satisfied with the result.
Get started Order in Chat
Check Prices
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know that being a student these days is hard. Because of this, our prices are some of the lowest on the market.

Instead, we offer perks, discounts, and free services to enhance your experience.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with My Paper Support
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Other
GREAT
Customer 452813, June 25th, 2022
Human Resources Management (HRM)
Thank you so much.
Customer 452701, August 14th, 2023
Human Resources Management (HRM)
Thank you so much.
Customer 452701, October 11th, 2023
Other
AWESOME
Customer 452813, July 5th, 2022
Nursing
Always perfectly done!
Customer 452955, October 28th, 2023
Psychology
Thgank you
Customer 452905, December 11th, 2022
Nursing
Great paper!
Customer 452707, January 14th, 2024
Other
GREAT
Customer 452813, June 20th, 2022
Nursing
Always perfect! Thank you!!!
Customer 452453, April 15th, 2021
Social Work and Human Services
The paper is impressive. Very professional and per the instructions
Customer 452533, May 24th, 2021
Nursing
Excellent work! Thanks again!
Customer 452707, December 11th, 2022
Other
AWESOME
Customer 452813, June 25th, 2022
Enjoy affordable prices and lifetime discounts
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Order Now Order in Chat

Ensure originality, uphold integrity, and achieve excellence. Get FREE Turnitin AI Reports with every order.