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McDonald’s Company SWOT and SPACE Matrices Essay

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Updated: Apr 16th, 2020

Introduction

McDonald’s is one of the largest companies that specialize in fast food in the world (Vrontis & Pavlou, 2008). The company has experienced a lot of expansion in its operations. Its expansion has been facilitated by the need to have several restaurants all over the world.

Just like any other business, McDonald’s Corporation has a number of challenges that tend to pull the company’s operations backward. However, the company has several strong points and strategies that enable it to maintain a large market share. Thus, this paper will look at the SWOT and Space matrices of McDonald’s Corporation.

SWOT Matrix

The table below outlines the SWOT matrix of McDonald’s.

Strengths

Brand recognition

Big share in the global fast-food market

High capital for advertising

Partnership opportunities

Local food menus

Independent franchisees in the company’s ownership

Targets children

Weakness

Unhealthy food menu

Negative publicity

Low differentiation

Opportunities

Start home delivery of meals

Provision of healthier food

Establish new customer groups

Stick to its new strategies

Threats

Market saturation

Changing trends

Local fast foods outlets

Fluctuations of currency

Constant lawsuits

SPACE Matrix

The table below outlines the SPACE matrix of McDonald’s. The matrix involves both the internal and external outlook of the company.

space matrix of mcdonalds

Recommendations and Conclusion

From the SPACE matrix of McDonald’s, as well as its SWOT analysis, it suffices that McDonald’s has the responsibility of making sure that it maintains its market share within the fast food industry (Deng, 2009). This can be achieved by ensuring that it improves customer loyalty, product quality, increase the amount of cash available in circulation for the business, and resource utilization. Evidently, MacDonald has a number of weaknesses and threats.

As such, the company should use its strengths and opportunities, as outlined in the SWOT analysis, to reduce the number of risks involved in the business. It should also put in place strategies to enhance its competitiveness. Such strategies will help the company to gain a higher market share in the fast-food industry.

In order to ensure that McDonald’s is highly valuable in this industry, it is recommendable that it continues expanding. In this context, the fast-food sector in Asia will be a suitable market to consider.

According to Deng (2009), the company can remain at its position, with the potential of expanding further if it adds several restaurants to take care of the Asian market with zero fat content in its meals. In addition, McDonald’s is required to improve the quality of meals and drinks it offers in order to reduce competition from other companies offering healthier foods.

References

Deng, T. (2009). McDonald’s new communication strategy on changing attitudes and lifestyle. IJMS, 1 (1), 1-2.

Vrontis, D., & Pavlou, P. (2008). The external environment and its effect on strategic marketing planning: A case study for McDonald’s. JIBED, 3 (3/4), 289.

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IvyPanda. 2020. "McDonald’s Company SWOT and SPACE Matrices." April 16, 2020. https://ivypanda.com/essays/mcdonalds-company-swot-and-space-matrices/.

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IvyPanda. (2020) 'McDonald’s Company SWOT and SPACE Matrices'. 16 April.

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