SWOT Analysis of McDonald’s 2021

Hey!!! If you want to start a business with McDonald’s Company then you should have to understand the SWOT Analysis of McDonald’s. In this post, I am going to talk about McDonald’s SWOT Analysis 2021.

McDonald’s SWOT analysis segregates all the key points “Strengths, Weaknesses, Opportunities, and Threats”, which are useful for businesses to survive in this competitive era. This article will help you better understand the McDonald’s brand and how it operates.

SWOT Analysis of McDonald’s
SWOT Analysis of McDonald’s

McDonald’s Overview:

McDonald’s Company is the best American Fast Food Restaurant chain all over the world.

Company Name McDonald’s Corp.
Industry Quick Service Restaurants
Type Public
Genre Fast food restaurant
Logo Mcdonalds Logo
Founded May 15, 1940; 80 years ago in San Bernardino, California
Founders Richard and Maurice McDonald (1st restaurant)
Ray Kroc (Founder of the McDonald’s Corporation)
Headquarters
Chicago, Illinois, U.S.A.
Number of locations 38,695 restaurants (2019)
Area served
Worldwide
Products
  • Hamburgers
  • chicken
  • french fries
  • soft drinks
  • milkshakes
  • salads
  • desserts
  • pancake
  • coffee
  • breakfast
  • wraps
Annual Revenue Increase US$21.076 billion (2019)
Net income
Increase US$6.025 billion (2019)
Number of employees Approx. 210,000 (2018 (1.9 million if franchised is included in 2015))
Website www.mcdonalds.com
corporate.mcdonalds.com

SWOT Analysis of McDonald’s 2021

For Mcdonald’s to reach its long-term competitive advantage it must address the various anxieties highlighted in the SWOT analysis of McDonald’s.

Below mentioned the Strengths, Weaknesses, Opportunities, and Threats of McDonald’s.

The Strengths of McDonald’s 2021

McDonalds Strengths

McDonald’s Strengths (Internal Factors) are focused on its strong points which are useful for its growth, revenue, and survival in this competitive era.

  • McDonald’s Corporation is one of the largest Fast-Food Restaurant Chains in the world.
  • McDonald’s is best known for its hamburgers, cheeseburgers, and french fries, they feature chicken products, breakfast items, soft drinks, milkshakes, wraps, and desserts.
  • The King of the Ring- That makes McDonald’s the world’s largest restaurant chain. After Walmart, Mcdonald’s has been ranked as the 2nd Largest Private employer on this planet.
  • it had 36,528 restaurants in 119 countries with almost 4,20,000 personnel employed, serving locally-relevant food and drinks at an affordable price.
  • McDonald’s works with local and global suppliers to ensure consistent, quality products. Its international network of franchise operator
  • McDonald’s is keeping at the lead of technology around the globe. Using the technology creates a more efficient process that will reduce the amount of interval time between a customer’s orders and the pick up of the order.

The Weaknesses of McDonald’s 2021

The company’s weaknesses are internal part are the approach to an idea of things to improve in your restaurant.

  • The company massively depends on the franchises which work individually and hence they have no control over their day-to-day performance, but it disturbs the brand directly.
  • The hazards of financial deterioration, mismanagement, customer dissatisfaction, and weak revenue generation.
  • McDonald’s is being higher depending on the Western markets like the UK, US, France, Canada. The brand’s market in areas like Malaysia, China, Singapore, and India is low which shows the low entrance of the market. As such, the brand is more dependent on the western markets for its major revenue part.
  • McDonald’s is one of the busiest food chains so customers face some difficulties regarding the receiving of the food. In addition, it reduces product availability that is critical to the progress.
  • For nearly a decade, McDonald’s breakfast sales remained unbeatable, especially in the US.  Although Mcdonald’s tries to update its menu by healthy criteria, McDonald’s meals are still unbalanced.
  • It faced criticism from its employees. The workers went to protest and there were strikes to increase their wages, thereby hitting the company’s reputation.
  • To make polystyrene, McDonald’s uses HCFC – 22, which is contributing to ozone reduction. The company has to repair this weakness if doesn’t want to be criticized.

The Opportunities of McDonald’s 2021

The opportunities of McDonald’s part are external factors where you think about all segments that can increase your sales revenue.

McDonalds Opportunities

  • Nowadays people are conscious of their health and prefer healthy food and a low-calorie diet. Obviously, the company has an opportunity to extend the menu with healthy food. It will help the company to increase the customer base and revenue.
  • An account of changing the lifestyle of the people they are loving the fast food. That’s why McDonald’s is opening more restaurants in new areas such as China or India.
  • McDonald’s has started a partnership with UberEats and Door dash for US food delivery. These mobile ordering apps and home delivery initiatives support McDonald’s to reach and satisfy customer’s ever-changing needs.
  • McDonald’s should have start connected directly into the business rather than trading the franchises to third-party owners and win royalty.
  • Also, Mcdonald’s can attract customers who just have low income by serving the low-cost menu. This feature makes up a fairly remarkable part, particularly in the current time when the global economy is fighting.

The Threats of McDonald’s 2021

McDonalds Threats

Threats refer to the external factors that are beyond the control of your competitor and could place their profitability and turnover at risk.

  • There are many latest fast-food brands enter to the market. In fact, not all brands are stronger like McDonald’s but few companies are competitors for example, Yum! Brands, Wendy’s, Chipotle, Subway, and Burger King.
  • McDonald’s has been the highest customer of meat items like pork, lamb, and chicken around the globe. But as we all know that some cultures don’t support all kinds of ingredients that Mcdonald’s use. 
  • McDonald’s is using wrappers, plastic straws, boxes, and cups which is unsustainable in an environment so it would be the cause of the pollution. That’s the reason it should replace its continuous package’s material with environmental-friendly ones to avoid posing a negative image to consumers.  
  • Government Regulations Policy on banning ingredients such as MSG (Monosodium Glutamate) which is used in cooking as a flavor enhancer in the food.
  • The customers nowadays are health-conscious they are leaner towards the products which are healthy. The Government Regulations on fat and sugar content will cost McDonald’s to reformulate its food and request them with suppliers.

Conclusion

I hope, you like my post. Above, I have presented a SWOT Analysis of McDonald’s where you can find the McDonald’s Strengths, its Weaknesses, Opportunities, and Threats.

So this article will help McDonald’s to improve its services and products by improving its weaknesses and compete against the threats.

Thanks for reading my post…

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