McDonald's SWOT Analysis, Competitors & USP

SWOT analysis of McDonald's analyses the brand by its strengths, weaknesses, opportunities & threats. In McDonald's SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like McDonald's to benchmark its business & performance as compared to the competitors. McDonald's is one of the leading brands in the food & beverages sector.

The article below lists the McDonald's SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the McDonald's SWOT Analysis:

SWOT Analysis of McDonald's

For McDonald's, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

McDonald's Strengths

The strengths of McDonald's looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of McDonald's :

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

4. McDonald's has excellent advertising and marketing which makes it a top of the mind brand

5. Happy meal offered by McDonald's is great attracting children especially with the toys

6. McDonald's is present across the world at more than 38000+ locations in more than 100 countries

7. More than 1.5 million are working with the company, including the franchisees

8. McCafe opened by McDonald's offers beverages to accompany the food

9. The brand has been actively involved in sponsorships of global events

10. McDonald's has revolutionized the market with local products like McAloo Tikki for India, Mc Arabia for Middle eastern countries etc.

11. The company has been recognized as one of the most valuable brands in the world

12. McDonald's drives its visibility through celebrity endorsements, global event sponsorships, donations, charities etc.

McDonald's Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the McDonald's SWOT Analysis:

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

McDonald's Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in McDonald's SWOT Analysis:

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

McDonald's Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of McDonald's are as mentioned:

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

McDonald's Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 8 competitors of McDonald's:

1. KFC

2. Pizza Hut

3. Domino's

4. Subway

5. Burger King

6. Smokin Joes Pizza

7. Taco Bell

8. Papa Johns Pizza

Hence this concludes the McDonald's SWOT analysis.

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About McDonald's

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. 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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