6 TOWS Analysis: Burger King And Mcdonalds

.6 TOWS Analysis

Threats:
• Trend towards a healthier lifestyle – as more people are beginning to transition to becoming healthier, the demand for McDonalds and various other fast food restaurants may slowly decrease as people opt for food with lower calories and fats.
• A change in consumers’ tastes – the food in this market may become unappealing to consumers as obesity and cardiovascular diseases rise in New Zealand. This would put people off as quick service foods are regarded as unhealthy.
• Fierce and growing competition – big fast food companies like Burger King and Kentucky Fried Chicken are constantly competing with McDonalds for customers and trying to take the spot as the top fast food chain.
• Substitutes – substitutes limit the

• Focusing on local produce – if McDonalds focuses on local produce, it has been shown that consumers favour this and trust produce from New Zealand, which may lead to an increase in profits.
• Mobile ordering/paying – with improvements to technology, McDonalds could introduce an app that would allow consumers to order through their smartphones, pick it up and possibly even pay through their phones, making everything a much more smooth process.
• Upscaling or renovating – by making restaurants that are in busy or high foot traffic locations more luxurious and appealing, consumers may be more willing to visit McDonalds for a bite.
These are opportunities because they are all options McDonalds can take advantage of in order to expand their company. By doing these, McDonalds will bring in more customers as these changes will attract consumers that are looking for a fast food restaurant that possess these

Because of this, many employees tend to leave when they have found a job with higher pay. This increases the training costs for their employees, as they tend to not stay for too long.
• Product is fairly similar to competitors – the McDonalds menu is quite similar to many of its competitors such as Burger King and Wendy’s. This forces McDonald 's to have to lower its prices in order to continue to be competitive.
• Lack of seasonal variation – McDonalds offers the same menu 365 days a year. During the hot summers, consumers may want something that fits to the climate. While they do have ice cream and frozen drinks, there is a lack of variation. An introduction to items that are only available for different seasons could force a change.
• Advertising is mainly targeted at children – children may be a large part of McDonalds’ target market, but the advertisements of the past have solely been targeting children. This is not an effective strategy, as the rest of the target market has not been targeted. Multiple ads that target all groups would solve this