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Similarities Between Mcdonald's And Mcdonalds

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Possibly two of the biggest burger brands in South Africa are fighting for first place in the hearts of South African food lovers. McDonalds and Burger King are two well-known international brands that have made a huge mark in the South African fast food industry. In order to discover which of these companies is more successful than the other, the backgrounds for each company will need to be highlighted to understand the business values and whether each company still possess these business values. An extensive comparison of the business environments needs to be conducted to see the potential opportunities and threats that the business may face in their external and internal environments. After this, a conclusive winner will be selected to be …show more content…

The main internal strength is the Brand Image of the corporation. As McDonalds is an international company, they would have a strong brand image to maintain international standards and therefore in South Africa, this allows McDonalds to be well recognized by consumers. This allows them to compete with other fast food brands successfully. Secondly McDonalds has a Standardized Process for their products. This allows them to put excellent quality controls in place to allow for good quality products and an efficient manufacturing processes. This strength allows McDonalds to separate themselves from competitors e.g. Burger King, and maintain a competitive advantage.

• Weakness: McDonalds’ main weakness is also one of their greatest strengths. Although the Standard Processes of their food allows for consistency, it also limits McDonalds when it comes to product diversification as the standardized process means that McDonalds cannot add new products to adapt to change in South African preferences. E.g. when the Banting diet became popular in South Africa and people only wanted fats and proteins, McDonalds were unable to change to this taste due to their standardized …show more content…

Consumers have such a diverse variety of fast foods to choose from and this could mean less sales for McDonalds. Also currently, South Africa is becoming more health conscious and McDonalds is criticized for offering unhealthy choices. This could result in a further loss of sales.
Therefore it is important for McDonalds to be aware of the internal aspects that can cause McDonalds to lose its competitive advantage in South Africa. It is important for McDonalds to strategize against the internal Weaknesses and Threats by using the Strengths and Opportunities to effectively deal with any problems.

Market Environment
The Market Environment is outside of the control of McDonalds yet the company is able to influence this environment. The shareholders in this environment interact directly with McDonalds and thus McDonalds need to analyze the market to identify possible threats and develop strategies to ensure that McDonalds are the market leader in the South African market. The best way to analyze this market is through Porter’s Five Forces.

Porter’s Five

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