SWOT

Strengths: McDonalds has a recognizable brand which has been established over many years. They have a wide range of products and are accessible to many people. They also have an extensive and effective global supply chain system which keeps its costs low.

Weaknesses: It may not pay the same attention to certain emerging markets such as vegetarian diets and organic or healthy foods. It has a perception of unhealthy food among many customers.

Opportunities: McDonalds can capitalize on health trends by introducing more healthy alternatives to their menu. They can also tap into other markets and expand to provide a wider range of food offerings.

Threats: Other fast-food chains are entering the market and providing stiff competition. As well, food delivery services are becoming more popular, which could pose a problem to the traditional dine-in model of McDonalds.

Porter’s Five Forces

Threat of New Entrants: McDonalds has established brand recognition and a reputation as a market leader, which deters new entrants from entering into the market.

Bargaining Power of Suppliers: McDonalds has an extensive global supply chain system and large negotiating power, which keeps its costs low.

Bargaining Power of Customers: Customers do have the ability to influence prices to a certain extent, but consumer loyalty to the McDonalds brand keeps them returning no matter what.

Threat of Substitutes: As food delivery services become more popular, there is increased competition and threat from substitutes.

Competitive Rivalry: As McDonalds is a market leader, there is a high level of competition from other fast-food chains who are vying for market share.