The paper "MacDonald’ s SWOT Analysis" is a perfect example of a business case study. Following its establishment in California, USA in 1940, MacDonald’ s has grown into one of the most respected and recognized brands in the world. The fast-food chain traces its rapid growth to the success of its internationalization strategy. Ever since its establishment, MacDonald’ s has opened over 300,000 stores in different markets on the globe. The globalization strategy has also seen the firm introduce its stores in more than 119 countries. On a daily basis, the chain serves approximately 47 million customers with annual revenue of approximately $15 billion.
MacDonald’ s also attributes its increased popularity to its participation in sponsoring sports and special events, and its inclusion in other social activities (Han 2009). The paper covers three sections. In the first section, the paper provides a SWOT analysis of the restaurant chain. The second section is a competitor analysis that also includes the profitability potential of the industry. The final section of the paper analyzes MacDonald’ s internationalization strategy. MacDonald’ s SWOT Analysis Strengths MacDonald’ s greatest strength is the brand name (Schanzmeyer 2009).
Men, women, and children all over the world recognize the brand. This has enabled MacDonald’ s to become the ultimate choice restaurant in value and service in the fast-food industry. MacDonald’ s brand was ranked eighth in 2008 among the top 100 global brands. It is evident that having a recognizable brand name is a crucial tool in brand marketing. MacDonald’ s also capitalizes on its huge economies of scale as strength. Even though Burger King and Wendy are the main competitors of the chain, the revenue generated by MacDonald’ s is approximately 10 times that of its market rivals.
The globally recognized brand enables the firm to enter into new markets smoothly and select restaurant locations easily. This explains why one can find a fast-food restaurant almost anywhere. The huge economies of scale also give MacDonald’ s an upper hand in pricing and supplier negotiations.
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Han, J., 2009. The business strategy of Mcdonald’s. International Journal of Business and Management, Vol. 3, no. 11, p.72.
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Schanzmeyer, J., 2009. MacDonald’s. Available at: https://business.missouri.edu/ifmprogram/reports/2009fs/McDonald's_(MCD).pdf
ToughNickel., 2016. McDonald’s SWOT Analysis and Recommendations. Available at: https://toughnickel.com/industries/McDonalds-SWOT-analysis-and-recommendations