McDonalds SWOT analysis

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Jed Hatton                20128821                

        Unit 3: Introduction to Marketing Assignment 1 P4

McDonalds is an organisation of high profile and carries out many marketing activities.

  1. For your chosen organisation, carry out a SWOT and a PESTLE analysis.
  2. Explain which of these factors has the biggest impact on marketing decisions and in what way.

McDonalds SWOT analysis

Strengths

McDonalds is worth loads. It is the number one in fast-food companies by sales, with more than 31,000 restaurants in almost 120 different countries. Sales of 2007 were 11, 4009 million which is a 5.6% sales growth from the year before.

Good innovation and product development. It continually works towards keeping customers in the business.

The McDonalds brand offers consumers choice, reasonable value and efficient service.

Large amounts of investment have been put into supporting the franchise network, 75% of stores are franchises.

They have a loyal staff and strong management team.

Weaknesses

McDonalds haven’t really made a significant effort to start producing healthier food and have received a lot of criticism because of this.

There are multiple quality issues from the franchise network.

Opportunities

McDonalds have joint ventures with retailers (e.g. supermarkets).

Possible move into healthier foods such as salads and sandwiches could be an option instead of the standard cheese burger and chips.

McDonald could use CRM, database marketing to more accurately market to its consumer target groups. It could identify likely customers (based on modelling and profiles of shoppers) and prevent brand switching.

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Strengthen its value proposition and offering, to encourage customers who visit coffee shops into McDonalds.

The new “formats”, McCafe, having Wi-Fi internet links should help in attracting segments. Also installing children’s play-parks and its focus on educating consumers about health, fitness.

International expansion into emerging markets of China and India. This will offer a lot of business due to the dense population.

Threats

Social changes - Government, consumer groups encouraging balanced meals, 5 a day fruit and vegetables.

Focus by consumers on nutrition and healthier lifestyles.

Competitive pressures on the high street as new entrants offering value ...

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