Having one of the most favorite burgers in the world, Mcdonalds is a brand which will hardly be missed by anyone. The SWOT of Mcdonalds discusses the reasons that the firm has been able to achieve this height of fame, and why, be it breakfast, lunch or dinner, people may prefer the local Mcdonalds.

Feb 07, 2017 1. BY-POOTUL BISWAS BBA 4TH SEM BCG MATRIX OF MCDONALD’S 2. ABOUT MCDONALD’S McDonald's is an American hamburger and f ast food restaurant chain. It was founded in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. The first McDonald's franchise using the arches logo opened in Phoenix, Arizona in 1953. May 12, 2019  Having one of the most favorite burgers in the world, Mcdonalds is a brand which will hardly be missed by anyone. The SWOT of Mcdonalds discusses the reasons that the firm has been able to achieve this height of fame, and why, be it breakfast, lunch or dinner, people may prefer the local Mcdonalds. Strengths in the SWOT analysis of McDonalds. Brand Equityworld-wide. Short Analysis on McDonald's Current Situation.

Strengths in the SWOT analysis of McDonalds

  • Brand Equity…world-wide
  • 42% of US fast-food hamburger business
  • Consistency of food
  • Successful items: Fries, Happy Meal, Big Mac, Egg McMuffin, Promotions
  • Overseas market
  • Balance sheet position

WEAKNESSES in the SWOT analysis of McDonalds

  • Declining market share
  • Weak productdevelopment
  • Disgruntled franchisees
  • Quality and taste of products
  • Slowed revenue and income growth

Mar 26, 2014 McDonald's 26 BCG Matrix: According to BCG Matrix McDonald‟s is a star. The reason for this is its high market growth and high market share in the Pakistani market. On the other hand KFC and Pizza Hut are the cash cows because of their low growth rate and high market share. McDonald's is one of the world's largest fast food chains, founded in 1940 in San Bernardino, California, and incorporated in Des Plaines, Illinois, in 1955. Since then, McDonald's has become a household name in America, known for selling a variety of convenience food items at thousands of locations worldwide.

OPPORTUNITIES in the SWOT analysis of McDonalds

  • International expansion
  • Only serving 1% of the world’s population
  • Growing dining-out market
  • Joint ventures with retailers (e.g. supermarkets).
  • Consolidation of retailers likely, so better locations for franchisees.
  • Respond to social changes – by innovation within healthier lifestyle foods. Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning.
  • Use of CRM, database marketing to more accurately market to its consumertarget groups. It could identify likely customers (based on modelling and profiles of shoppers) and prevent brand switching[4].
  • Strengthen its value proposition and offering, to encourage customers who visit coffee shops into McDonalds.
  • The new “formats”, McCafe, having Wifi internet links should help in attracting segments. Also installing children’s play-parks and its focus on educating consumers about health, fitness.
  • Continued focus on corporate social responsibility, reducing the impact on the environment and community linkages.
  • International expansion into emerging markets of China and India.

THREATS in the SWOT analysis of McDonaldsClip studio paint ex 1.9.5.

  • Mature/overstored industry
  • Strength of competition
  • More health-conscious consumers
  • Changing demographics
  • Fluctuation of foreign exchange rates; Economies
  • Recession or down turn in economy may affect the retailer sales

McDonald’s is a multinational company operating in more than 117 countries with more than 32,000 McDonald’s restaurants. Most of the McDonald’s restaurant are owned by independent owners worldwide (Miranda, 2017). The history of McDonald’s is that it initially started as being a small hamburger stand in Bernardino California, which was owned by Dick and Mac McDonald. Later on they had a determination to develop their business, so they decided to close their business for 3 months and later on re-opened it on 1948 as a self-service drive in restaurant serving only 9 items (Miranda, 2018). Later then in 1954, a salesman known as Ray Kroc signed a franchise agreement with Dick and Mac McDonald opening his first McDonald’s, it is then when McDonald’s starting growing its successful fast food restaurant. (Meyer, 2018).

BCG – Matrix

According to Smart Insights (2018), there are mainly 4 types of quadrants in a BCG growth matrix which are the Dogs; which are the products with low growth and market share, Question marks; these are the products with low market share but high market growth, Stars; segments which compete and operate in high sales growth industry and have high market share. Cash cows; these are the products with low market growth but high market shares.

According to Kasi (2018), McDonalds has the highest market share in the fast food industry compared to its core competitor, the Yum brands, which owns KFC, Pizza Hut, and Taco bell. McDonald’s has segmented its operations into 4 geographical areas which is America, Europe, APMEA (Asia Pacific, Middle East, Africa geographical region) and other.

Application of BCG Matrix on McDonald’s

Stars: Kasi (2018) mentioned that McDonald’s Europe segment will come into the category of stars because in 2015 and 2016, Europe has generated the highest revenue for McDonald’s, and it requires effective market development and strategies for market penetration to evolve this segment into cash cow for financial stability in the long run.

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Cash Cow: He also mentioned that the American segment of McDonald’s reported 31% share of revenue in their annual sales. But on the other hand, Kasi (2018) also mentioned that the American segment has a very tough competitive environment, where customers can replace McDonald’s with substitute restaurants. And there is also the risk of high entrants, as fast food businesses requires less start-up cost with a unique product for differentiation which can attract customers to try out new menu’s instead of dinning in the same restaurant throughout, or new firms entering the market can try to imitate McDonald’s key selling product which is the beef burger and be able to sell their products with a lower price by cutting down on their costs in other to drag customers towards them. McDonald’s should focus on including new products into their menu, target more market segments, identify their needs of cuisines and satisfy them accordingly.

Question Mark

The APMEA geographical segment can be considered in this segment of McDonald’s, The core competitor of McDonald, Yum brands has been establishing new franchise every day in this region, even though McDonald’s is huge sales growth in this region, they are unable to take advantage of this opportunity because McDonald’s was not unable to compete with its competitors. It order to overcome this situation in this region, McDonald’s should focus on market development of its products, and come up with product development strategy and they should also increase their franchisees outlet in this region according to the need of its customers like how they tailored their menu in India by introducing the Veggie burgers in order to capture the market. Software testing notes by srinivasan desikan pdf free download. If McDonald’s is able to successfully implement these strategies, they will be able to turn this segment into a star quadrant of the BCG matrix.

Dog

As this segment is composed of low sales and low market growth, it is a bad decision for McDonald’s to continue business operations in this segment, thus if any of its outlets fall in this region, they tend to close it down in order to save their brand image. Thus, none of McDonald’s segment falls in this category.

References

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Kasi, K. (2018). BCG matrix of McDonald’s. [online] BCG Matrix Analysis. Available at: http://bcgmatrixanalysis.com/bcg-matrix-of-mcdonalds/ [Accessed 16 Jun. 2018].

Mcdonald's Bcg Matrix Price

McDonald Steel. (2016). Mission, Vision and Values – McDonald Steel. [online] Available at: http://mcdonaldsteel.com/mission-vision-values/ [Accessed 16 Jun. 2018].

Meyer, P. (2018). McDonald’s Vision Statement & Mission Statement Analysis – Panmore Institute. [online] Panmore Institute. Available at: http://panmore.com/mcdonalds-vision-statement-mission-statement-analysis [Accessed 16 Jun. 2018].

Mcdonald 27s Bcg Matrix Price

Miranda, B. (2017). [online] Available at: http://mcdonaldsteam3.blogspot.com/2010/05/mcdonalds-introduction.htmlhttp://mcdonaldsteam3.blogspot.com/2010/05/mcdonalds-introduction.html [Accessed 16 Jun. 2018].

Miranda, B. (2018). McDonald’s Introduction/History/CEO. [online] Mcdonaldsteam3.blogspot.com. Available at: http://mcdonaldsteam3.blogspot.com/2010/05/mcdonalds-introduction.html [Accessed 16 Jun. 2018].

Mcdonald 27s Bcg Matrix Chart

Smart Insights. (2018). How to use the BCG Matrix – Smart Insights Digital Marketing. [online] Available at: https://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-matrix/ [Accessed 16 Jun. 2018].