Strengths: McDonald’s is the largest fast food restaurant chain, its sales are 8% higher than any other fast food restaurants. It serves around 68 million customers per day in over 119 countries across 35 000 stores. For this reason it has been given the name of the largest fast food market share in the world, which means the brand is well known this gives the company edge over other similar company’s like Burger King. The brand is valued at 40 million dollars which is huge compared to Burger King which are only valued at 28 million dollars. The brand has become so popular because McDonald’s clever use of Ronald McDonald Clown to promote their products which became such a hit with young children and young adults.
McDonald’s is the largest and best-known global food service retailer with more than 30,000 restaurants in 121 countries, and best-known global food service. The first McDonald's restaurant was opened in 1954. McDonald’s outstanding brand recognition, experienced management, high quality food, advanced operational systems and unique global infrastructure has ensured that they will be the first to capitalize on any opportunity. However, to remain on top, any business needs to operate ethically and keep innovation in mind when looking towards the future. Business Ethics means conducting all aspects of business and dealing with all stakeholders in an ethical manner.
McDonald’s is successful because of the continuous equipment updating, improvement on serving time, and in finding more ways to satisfy customers. McDonald has a unique value chain because of the rare need to depend upon other companies for supplies. The firm owns nearly every portion of the value chain. McDonald's have their warehouses within a reasonable proximity to all of their restaurants. This, along with owning the warehouses allows the restaurants to get all of the needs met in one shipment and not deal with multiple suppliers.
They become main choice for customer because their service that they used in entertain customer actually attract the customer to buy their product. They also able maintain their quality in making a burger although they use high technology in process a burger. Furthermore, it help their productivity more effectively and this is because they use a concept just in time in their management. Just in time actually has help a lot McDonald to sustainable in fast food industry. It encourage McDonald to increase their achieving to gain profitable in making fast food.
Another strength of McDonald Corp. is their history of strong financial performance. McDonalds is known for shareholder-friendly efforts intended to provide investor returns. The fast food industry is a very competitive space and requires constant innovation and new product development to maintain a competitive advantage. McDonalds has shown their ability to forecast and put into action what their customer wants and needs are. A great example is the McCafé line which is exceeding performance expectations.
The majority of restaurants are owned by independent franchisees. Ability to adapt to local tastes is one of McDonald’s strengths. Their raw materials like potatoes, meat, and bread are direct link with different producers. 4. Partnership with best brands.
This is especially so because of the lack of regional or global alliances among suppliers. • Low forward vertical integration (weak force) In relation, most of McDonald’s suppliers are not vertically integrated. This means that they do not control the distribution network linked to McDonald’s facilities. • High overall supply (weak force) The relative abundance of materials like flour and meat reduces suppliers’ influence on McDonald’s. There is no need to anything about it (GREGORY, 2015) Reason behind threat of substitutes or substitution being a strong threat • High substitute availability (strong force) There are many substitutes to McDonald’s products, such as products from artisanal food producers and local bakeries.
Marketing and Strategy McDonald’s adopts different marketing strategies for different marketing environment. In United States, McDonald’s emphasizes convenience and efficiency because the rhythm of life in America is fast. McDonald’s regards white-collar workers as main target customers. On the contrary, in China, McDonald’s makes emphasis on comfort and romantic. And its target customers are young people because young people in China occupy the main part of fast food consumption.
Business customers may stop in the midst of the workday and can depend on fast organization, and dependably extraordinary sustenance. Another noteworthy concentration of McDonald's elevating is to adolescents. Youths find the regard menu especially captivating and McDonald's business parts their diners as a cool place to meet with their sidekicks and to work. McDonald's moreover focuses on the perspective of critical worth inside it line of things and thusly takes care to esteem its menu things fittingly. Particular things are evaluated contrastingly depending whereupon target social event of individuals those things demand to