McDonald’s, the world famous fast-food chain, has recently reported that their profit is falling by 30% and same store sales in the United States have being declining at a rate of 4.1%. This is deemed to be McDonald’s “worst financial quarter in years”, proving that even the most reputable golden arches are not immune to aggressive competition and rising prices – a fatal flaw for cost sensitive customers.

To combat competition from food chains like Chipotle Mexican Grill, Arby’s, Subway, Burger King, and A&W, McDonald’s is launching their “McDonald’s Experience of the Future” initiative. This initiative allows customers to customize their menu with fresh ingredients, making their food options catered to specific customer needs.

I believe that McDonald’s is appropriately responding to the changing lifestyle of its health aware customers. As the promotion of a health conscious lifestyle is becoming increasingly popular, this threatens McDonald’s business and lowers the demand for their goods. Their food seems unappealing and detrimental to a nutritious diet, making McDonald’s the “enemy” of all health enthusiasts. To combat this unattractive brand image, McDonald’s is creating an opportunity for themselves as they attempt to make their menu seem fresher and healthier with the launch of their new initiative. In addition, their most prominent point of strength, their low cost food, is progressively weakening as their prices steadily rise. The SWOT analysis below shows McDonald’s current strengths, weaknesses, opportunities, and threats to the firm.

(Click on the SWOT table to enlarge it)

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