The paper "McDonald’ s SWOT Analysis" is a perfect example of a business case study. McDonald’ s has developed a strong distribution network worldwide. In 2000, the company had opened about 30,000 restaurants in 120 countries. This strong distribution network allows the company to operate at lower prices since the customers are able to get the products from outlets near them (Ghobadian & O’ Regan 2014). This saves operational costs for the company widening the profit margins. Besides, the distribution network places the company in a position to beat the competition since the products have been made within reach of the customers (Crawford 2015).
In India, the company has set up many outlets, about 80 by 2003, especially in the major cities which have seen the company earn over Rs 10 billion annually (Pangarkar & Subrahmanyan). As such, the company enjoys geographic diversification in a manner that the revenue received by the company does not originate entirely in the United States but also from the rest of the world. according to the 2015 estimates, the company had only 33.7% of the revenue from the united states and 66.3% from the rest of the world (Crawford 2015). The diversified streams of income allow the company to enjoy increased profits even in regions where the population is formed up of more vegetarians (Ghobadian & O’ Regan 2014).
As a matter of fact, the company does not rely on one line of products but presents a variety of products at different prices that caters to different people in society (Jeon et al 2016). Moreover, since the company has set up diversified lines of production, it has further acquired company-owned restaurants besides franchise stores like Vikram Bakshi (Pangarkar & Subrahmanyan).
This allows the company to source revenue from franchised stores to boost the net revenue compared to the rivals who have fewer or no franchise stores. Since the different franchise stores are not located in one country, the company is rarely affected by the political, social and economic changes and hence remains in the leadership position globally (Ghobadian & O’ Regan 2014).
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