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McDonalds Pakistan SWOT Analysis

Posted by mbalectures | Posted in SWOT Analysis | 1,277 views | Posted on 28-09-2010
Tagged Under : mcdonalds pakistan swot analysis, SWOT Analysis of McDonald's Pakistan, swot analysis of Mconalds Pakistan

SWOT means strength, weaknesses, opportunities and threats of a company. The strategy of any company must match with its internal strength and weaknesses. Similarly, it should provide a base for capturing market opportunities and erect defenses against external threats. Therefore it becomes imperative for the large organization do conduct SWOT analysis on regular basis. The SWOT analysis of McDonalds Pakistan is given below.

Strengths 1. Brand Name

McDonalds has a high brand name in the world. McDonalds corporation is the USA fast food industry and having more than 30000 thousands restaurants through out the world. Due to such a big chain of restaurants its brand name is very powerful.

2.

Research and Development

McDonalds does a lot of research before opening any restaurants. It analyses the political, social, cultural, economical, technological and legal environment. For example McDonalds is not opening its restaurants in those areas of Pakistan which are not secured.

3.

Loyal customers

In Pakistan McDonalds has got loyal customers. Many Pakistani people like the American food, which they find at McDonalds. There are also some other American fast food restaurant in Pakistan but the loyalty of people are greater with the McDonalds because of its quality food and better place for family.

Weaknesses 1. 2. Lack of Professionals Less number of Franchises

McDonalds is facing the problem of hiring educated professionals in Pakistan because of high illiteracy rate. Literacy rate in Pakistan is only 50% (Economic survey 2003). This also includes those who can only write their name. The number of McDonalds franchises in Pakistan is only 18 covering 6 big cities, which are Karachi, Hyderabad, Lahore, Faisalabad, Islamabad and Rawalpindi. Due to fewer franchises the market share of McDonalds is low as compared to its competitors.

3.

High price of Food

The prices of McDonalds products are higher than the products of local restaurants and other competitors. Since the people of Pakistan are price conscious so they prefer to consume the products having lower prices.

Opportunities 1. Market Development

McDonalds is following the market development strategy. Presently McDonalds has 17 branches through out the country and covering only six cities. McDonalds is planning to increase the number of braches and market share.

2.

Large consumer Market

According to Economic survey 2003, population of Pakistan is 150 billion. More than 30% population lives in urban areas. So McDonalds has got the opportunity to serve the 30% population. Large population also helps the marketers to come with new strategies and get the competitive advantage.

3.

Social and Charitable Activities

McDonalds has a good opportunity to contribute in the social and charitable activities. It can also establish an institute similar to the Ronals McDonalds in Pakistan. This will improve the public image of McDonalds in Pakistan.

4.

Lower Prices

Since the prices of McDonalds product are lower, this is the hurdle in generating more revenue. So by lowering prices McDonalds can attract large number of consumers.

Threats

1.

Political Instability

In Pakistan there is high political uncertainty, which is harmful for the economic and industrial development. This political instability also poses threat for McDonalds.

2.

War against Terrorism

Due to the current war on terror, McDonalds has been facing some hurdles in Pakistan. McDonalds Pakistan decided to cover up their signs when the military took action in Afghanistan. Some people who were angry about the bombings immediately reacted and began to damage the property. Many people believe that McDonalds is one of the most popular American symbols, which of course puts it at risk when political upheaval begins.

3.

Health Conscious Consumers

McDonalds is dealing in food, which is directly related to the health of consumers. Therefore McDonalds is facing strong criticism from the people for their products. It is argued that thousands of people are pushed into the valley of death due to the burgers of McDonalds. Some critics argue that the beef, which is used in the beef burgers of McDonalds, is being imported from South Africa, which has had many cases of Mad Cow Disease.

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