SWOT Analysis - McDonald's

Extract

[...] Threats Healthy eating trend, eat local For several years there has been a vast trend in industrialised countries concerning the demonization of fatty, salty or sweet ingredients. The trend is towards healthy eating, healthy dishes, balanced cuisine and local supplies. In this trend, it is difficult for McDonald's to find its place and promote its products. Decrease in Meat Consumption in General Meat consumption tends to decrease, which can be a threat to McDonald's, which offers few alternatives to meat. In some countries, however, there are more vegetarian products, such as India, for example. [...]

[...] For example, Burger King has only 17,000 compared to almost 39,000 for McDonald's. Network strength McDonald's territorial network is very tight, especially in developed countries where stores are plentiful and easily accessible. McDonald's is continuing its network in developing countries in order to increase its presence and continue to conquer the market. Mix of franchise/own network McDonald's own stores as well as franchisees (the vast majority). The average turnover of directly owned stores are more than 10 times higher than that of franchisees, demonstrating the group's ability to select its directly owned stores and to turn them into large-scale showrooms, which contributes to the good group image. [...]

[...] SWOT Analysis - McDonald's I. Introduction A. McDonald's The McDonald's Group (full name: McDonald's Corp) is undoubtedly one of the best-known groups in the world. The emblem of fast food (and sometimes even a symbol of junk food), the group offers fast food services (burgers, salads, wraps), on-site, take away, drive-through or delivery (depending on the country). The group was formed in 1940 and quickly experienced significant growth, first in the United States, before conquering most of the world. B. [...]

[...] Adaptation of products to different markets McDonald's understood early on the need to tailor its product portfolio to the different markets in which it operates. In India, for example, they do not offer any beef products as the cow is a sacred animal. Instead, they have offered several vegetarian options, which are highly popular with consumers. The quantities of spices and aromatics also vary from country to country, which allows consumers to find products suited to their taste and culture, and are not standardised. [...]

[...] Conclusion and Strategic Recommendations In a particularly difficult health and economic context, McDonald's seems to be showing good resilience. While the group recorded a 10% drop in revenue for the fiscal year 2020, compared to 2019, this difficult period also allowed McDonald's executives to rethink their development strategy for the future. By pursuing its multi-channel distribution strategy, and placing an even greater emphasis on digital technology, McDonald's should quickly return to growth and once again pass the symbolic mark of 20 billion in annual sales. [...]