SWOT Analysis: Mc Donald’s India
SWOT Analysis: A SWOT analysis is commonly used in marketing and business in general as a method of identifying opposition for a new venture or strategy. Short for Strengths, Weaknesses, Opportunities and Threats that may affect any new proposed actions. Here we represent our proposed venture’s SWOT analysis report.
STRENGTHS:
• Good Taste: The fast food chain is operating in many diverse cultures where tastes in food are extremely different than those of US or Indian consumers. Thus ability to adapt to local taste is one of McDonald’s strengths.
• Brand Equity: McDonalds has built up huge brand equity. It is the no 1 fast food company in India these days by sales McDonald's India is a leader in the food retail space, with a presence of more than 310 restaurants serving more than 650000 customers daily in India. Image of McDonalds can be recognized everywhere. This brand is in top ten brands and the most powerful and the best brand names in the world.
• Operations: The business receives a part of its income from foreign operations. The profits (money) sent to US have to be converted into dollars which affect ted by the exchange rates especially when the dollar is appreciating against other currencies.
WEAKNESS:
• High Price: Mc Donald’s is no longer able to substantially differentiate itself from fast food chains (at least not enough to gain some market share) and opts to compete by price rather than by additional features.
• Image of ‘Fried’: Although McDonalds tries to update its menu by saying it healthy food. For example, there are many dishes with chicken (both grilled and fried) Eggs. Besides that there are just few dishes which are salad with vegetable and fruit. Moreover, the amount of fr...
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...its type of business but as per passage of time market conditions changed and came up with local rivals and evolution of animal protection activists and organisations, So to survive in the Indian market it should now concentrate on other stuffs as well like CSR and precautions for avoiding in involving in any conspiracy act and should change as per business dynamics of the Indian F&B Industry.
Recommendation - We are recommending that McDonalds should use Cost leadership strategy as another tool that will help in its expansion. They should focus on increasing the relation with local suppliers to purchase the raw materials, ingredients etc. Mc Donald’s should give proper training to their staff to deliver high quality customer service. They should be corporative with the local culture using local festivals and events to promote the McDonalds brand all over India.
What is a SWOT analysis? This concept involves assisting businesses to identify their strengths, weaknesses, opportunities and threats. It is often used to analyze an organization and its environment. Businesses find the analysis useful in assisting them to improve their business, establish goals and objectives.
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
McDonald’s McCafe, offers new products to the traditional menu of McDonalds. McCafe specializes in a variety of different types of coffee as well as smoothies, which attracts new customers that might not otherwise come to McDonalds for its burgers and fries, and gives McDonalds an edge over the competition by offering products that are different than the competition. McCafe is its own entity as well as it holds its own specific area in most McDonalds restaurants.
I have selected Mc Donald’s as an organization on which I would be making this report. I would be discussing Mc Donald’s competitive advantages over other organizations by applying a Resource based view of strategy. This report would highlight the resources and capabilities Mc Donald’s has and how can it utilize those resources to gain competitive advantage over its rivals.
Fast food chains use value pricing. This type of pricing is how much the customer thinks an item on the menu is worth. Basically what this means is customers see price as a primary indicator of a product’s value. Value pricing happens when a company increases a product’s benefits while either maintaining or decreasing the price. A great example of value pricing in McDonald’s is the ability to “super-size” drinks and fries. The value of the drink or fries is increased because a customer can get substantially more of the item for a fraction more of the
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
...ndustry well established in Canada, McDonalds’ traditional competitors have all found their own niche. Their constant changes are more directed at customer satisfaction then keeping inline with their competitors.
McDonald's also focuses on the perception of value within it line of products and therefore takes care to price its menu items accordingly. Different products are priced differently depending on which target audience those items appeal to most. An extensive value menu is an essential part of any fast-food menu in recent years. The prices and products within the value menu can prove to be areas that will make or break a fast-food companies' year depending on the competitions value menus.
McDonald’s is one of the popular fast food chains in Hong Kong and the success of McDonald’s is due to it is able to create a homogeneous “global” culture that suit to the demands of a capitalist world. In Hong Kong, Time is money thus McDonald’s strategy is consistently fit to the fast food industry. The company has both economic strategy targeting at customer globally and locally.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
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.
To sum up all information above, it is understandable that McDonalds has positioned itself as fastest and cheapest fast-food retailer. According to this statement, the main competitive priority for the company is low-cost and dependability of their product. Nevertheless, McDonalds takes into account other competitive priority like high design-performance, credible consistent quality and cultural flexibility.
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are safe and reliable that it does what it is supposed to do, but not only does the quality of the products matter, the good value for money affects the business. E.g. buy one extra value meal and get one free with a food voucher that represents the offer only. They ensure that a high standard of the product is carried out at all times and they try to compete very competitively with other fast food businesses with their good value for money. Also a customer would know if the product is good value for money by checking in another food outlet like KFC for their services and products.
By using a SWOT analysis Starbucks can see where they are doing well, and where they could be improving. SWOT stands for Strength, Weakness, Opportunity, and Threat. (Marketline, 2016).
McDonalds uniform menu offerings can be mass produced; therefore helps to lower production costs. Additionally, the company bargaining power with its suppliers lowers its input costs and boost margins and even more importantly, McDonald 's offers a very large advertising budget which gives the company a significant competitive advantage over its competitors. Much of McDonald 's sales occur outside the United States and thus, with McDonald 's tapping extensively into global expansion therefore the company’s international operations will continue to strive and