McDonald's Case Analysis

McDonald’s, as the world’s leading fast food restaurant chain with more than 34,000 local restaurants, is serving approximately 69 million people in 119 countries each day. But will McDonald’s fall from the peak one day? Let’s take an examination on McDonald’s through a SWOT analysis, this will give us a better understanding of the company and its business.

Current Marketing Situation:

Strengths: McDonald’s is the largest fast-food chain in terms of world sales, bringing in around 8% of total fast-food sales. It serves around 69 million customers every day from over 100 different countries.

More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees. So McDonald’s can optimize it’s marketing, it’s a typically business model while McDonald’s take the marketing and brand and the franchisers stay at the bottom of profit: production.

McDonald’s is one of the most valuable brands in the world, estimated valued at $40 billion. This makes McDonald’s the most valuable fast-food chain brand, and the most recognizable fast-food chain, with reported spending of almost $2 billion in advertisements yearly.

McDonald’s successful model is easily copied and yet not: due to its worldwide franchises, McDonald’s build up a massive production demand and consequently leads to a dominant buying power where it can negotiate the best out of supply chain.

McDonald’s also cleverly target Children as a major part of their population because Children are often accompanied by adults so likely to win both.

Weakness: McDonald’s have been the core of anti-fast food targeting due to its unhealthy menu, worldwide individuals and organizations have been constantly trying to prevent people from eating McDonald’s.

McDonald’s established business model has now been copied everywhere, and the risers are leveraging all McDonald’s successful elements