Mcdonald's Corporation: The SWOT Analysis Of Mcdonalds

History McDonald’s has been a well-renowned corporation for just short of a century by a few decades. The original McDonald’s restaurant started in “1940 as a BBQ restaurant in San Bernardino, California” (McDonald’s History, n.d.). “The McDonald’s drive-in restaurant opened in 1948 as a self-service drive-in restaurant” (McDonald’s History, n.d.). In 1949, McDonald’s now known French fries “make their debut” (McDonald’s History, n.d.). The first location outside of California in Illinois opened up in 1955 with Golden Arches designed by Stanley Meston (McDonald’s History, n.d.). By 1958, “McDonald’s sold its 100 millionth hamburger” (McDonald’s History, n.d.), and by 1959 McDonald’s opened its 100th restaurant (McDonald’s History, n.d.). On
McDonald’s is a very established global organization with a well-known brand. One of McDonald’s strengths is its “strong brand value and market leadership” (McDonald’s Corporation SWOT, 4). McDonald’s is high ranking in customer base serving over “69 million customers” (McDonald’s Corporation SWOT, 4). “Focus on positioning itself as a value and family restaurant brand” is another top strength of McDonalds (McDonald’s Corporation SWOT 5). The restaurant has many price points that allow it to cater to more than one person.
McDonald’s also has weaknesses that can affect its long term corporate goals. Weaknesses of the company involve, “tax evasion and lawsuits” (McDonald’s Corporation SWOT 6). These weaknesses stem from issues on foreign soil with tax evasion. The tax evasions come from “the company using royalty payments from franchisees and foreign subsidiaries in major markets to route profits to tax sanctuaries” (McDonald’s Corporation SWOT
“Competitive rivalry or competition (strong force)
2. Bargaining power of buyers or customers (strong force)
3. Bargaining power of suppliers (weak force)
4. Threat of substitutes or substitution (strong force)
5. Threat of new entrants or new entry (moderate force)” (Gregory 2015).
These external factors can be overcome by possible “product innovation” (Gregory 2015). If McDonald’s can use new products to help stand up against their rivals, it may help to push them further ahead of industry than what they already are. McDonald’s has a large amount of competition as the “market is already saturated” (Gregory 2015). They also have to deal with the fact of customers providing the primary source of power for the firm. This power is derived from the idea that they want to be continued customers of McDonalds. The customer can easily switch to another fast-food chain, such as Wendy’s, Burger King, and “food outlets, artisanal bakeries, as well as foods that one could cook at home” (Gregory 2015). “Customer loyalty” (Gregory 2015) is a huge part of McDonald’s