McDonalds Case Study

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Bargaining Power of Consumers

New Entrants

• Consumer Promotions

McDonald’s appeared to have spent most of their time convincing consumers to buy their food however has not made any changes in product offerings.

• It can research ways to include healthy products in their menus across the world.

• One of the big advantage is their feature of McDonald’s PlayLand.

• Negative publicity.

• Consumer’s changes in preferences depending on their healthy diet.

• Competition of other fast food chain .

E.1 c.general environment

Area Opportunities Threats

Socio Cultural

Technological

• McDonald’s increased it’s, international expansion, the menus of international locations received a more local flavor.

• Capacity to buy many multimixers higher than the normal needed machine.

• Possible decrease of revenue depending on the location of the fast food chain.

SWOT ANALYSIS

SWOT Matrix

Strengths

1. Ability to expand internationally

2. Rank first in market shares

3. Successful advertisement

4. Speedy Service System

5. Training program Weakness

1. Weak Product Development

2. Controlling quality with franchise operations

3. Market share loss due to competition

Opportunities

1. Increase international expansion

2. Consumer Promotions

3. Innovation to their menus

4. Capacity to buy many multi-mixers

5. McDonald’s PlayLand

S1,O1: Should expand internationally so it would also increase their international expansion which result to higher revenue.

S3,O2: Continue effective advertising to attract more consumer.

S1,S5,O3: Continue to expand internationally and trainings for employees to gain new ideas.

S2,O4: Keep buying multi-mixer since it’s one of the strategy to rank up in market share.

O1,W2: Control the international expansion to avoid conflicts through franchisees.

O2,O3,W1: Innovate food development to convince public and food quality.

SWOT Matrix

Threats

Strengths

1. Ability to expand internationally

2. Rank first in market shares

3. Successful advertisement

4. Speedy Service System

5. Training program Weakness

1. Weak Product Development

2. Controlling quality with franchise operations

3. Market share loss due to competition

T1:Negative publicity

T2:Consumer changes in preferences depending on their healthy diet

T3:Competition of other fast food chain

T4:Possible decrease of revenue

T1,T4,S1: Be careful to expand internationally because decrease of revenue may occur due to negative publicity.

T3,S2,S4: Combat rivalry to lessen by using Speedy Service System to maintain top rank.

T3,W3: Be careful to competitions because there is a possibility to lose shares and face more problem.

ALTERNATIVE COURSE OF ACTION

Objective 1: To implement more effective strategies like Plan to win to combat rivalries.

Objective 2: Increase sales by developing good food quality suited for kids and health conscious consumer.

Advantage

Disadvantage

To be more competitive and prepared to keep pace with the consumers.

Competitors may shift their competitive tactics to focus on building customer loyalty.

Increased revenue and more expansion to other countries.

Customer preferences began to change due to technological advances and increase health consciousness.

RECOMMENDATIONS

• McDonald’s marketing department should improve their product quality by changing their food preferences