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McDonald s – SWOT Analysis

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					McDonald's Corporation in the New Millennium
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McDonald's - Introduction
 McDonald's is the world's largest chain of fast food restaurants, serving nearly 47 million customers daily.  McDonald's sales growth in the U.S had slowed to below the industry average in the late 1990’s and early 2000s.  Big Mac Attack now refers to McDonald’s earnings declines.
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McDonald's – SWOT Analysis
STRENGTH
 Largest fast food chain and number 1 in industry order in annual sales.  Offer a variety of new products to attract customers.  Drive-through counters for fast food delivery for the busy customers.  A favorite hang out place for single working class male below 30 who spent an average of $40 per day.  Positive corporate image through it’s Ronald Mc Donald House charity and it’s annual Charity Christmas Parade in Chicago.  Heavy investment on advertising its product and improving its public image.  Introduced its first domestic McCafe serving gourmet coffee and pastries with the goal of doubling sales for the next decade.

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McDonald's – SWOT Analysis
WEAKNESS  Gradual shift of consumer preference toward hamburger substitute created a strong competitors.Mc Donald’s non-hamburger sector is less appealing and lack of non-hamburger sandwiches are turning customers to competitors like KFC, Pizza Hut and Taco Bell.  Fast food is more often perceived as unhealthy food due to its high in calories. Mc Donald’s do not have a food line catering to the health conscious customers segment.

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McDonald's – SWOT Analysis
Opportunities  Increase the speed of drive-through delivery as it will increase average sales of current products by 10 percent. Burger King did an extensive upgrade on its drive-through.  Include non-hamburger sandwiches to menu.  Introduce menu lines competitive to Wendy’s and Burger King who are quick to response to the change in customers preference by introducing salads and adding new menus and improve current menus.  Add Deli sandwiches and meals to Mc Café. company name

McDonald's – SWOT Analysis
Threat
 If Mc Donald’s is slow at keeping in pace with it’s hamburger segment and non-hamburger segment competitors, it will loose it’s market share and will threaten it’s position as the number 1 fast food chain in term of sales,under the hamburger segment. Burger King is improving fast, so is Wendy’s.  Fast-casual sector is growing from 15 to 20 percent per year versus 2 percent of quick service sector. People are willing to pay a little more for better dining experiences.  An increase in the upscale fast-casual segment that includes restaurants like Boston Market,Panera Bread offering deli sandwiched and meals.

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McDonald's – Issues
 Americans are eating out less often compared to previous years and eating habits are changing.  A growing trend is the move of customers to nonhamburger sandwiches.  Many younger consumers are getting tired of fast food and are thinking about their health.  Fast food is less appealing to baby boomers who look for better alternatives and this is a large group who frequently eat out.  Growing dissatisfaction with the quality aspects.

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McDonald's – Recommendation

 To cater to changing habit of eating out, introduce reward point systems similar to the retail industry. Though customers may have to be prudent in spending, the reward points will encourage them to Mc Donald’s when they have to eat out.  To compete and gain customer from the fast-casual sector, include non-hamburger sandwiches to its current McCafe chain. It is currently serving pastries and coffee only.  To cater to young and baby boomers customers who are health conscious, include healthy choices like the choice of ;  whole meal bread for burger buns, baked potatoes instead of fries,  Add salads to the menu. (Wendy’s salads; ‘Garden Sensations’ is doing very well),  Introduce grilled menu food with high quality ingredients and sell at non-discounted prices. ( success strategy at Taco Bell).  Pay attention to complaints on quality and rectify them and response to the complaints and share the solutions with the customers.

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CONCLUSION

THANK YOU.

You wanna a bite!

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DOCUMENT INFO
Description: This is a MBA Project on Buisiness plans and Marketing. Excellent Guide on Marketing