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 McDonald’s Pakistan is given below.
1. Brand Name
McDonald’s has a high brand name in the world. McDonald’s 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
McDonald’s does a lot of research before opening any restaurants. It analyses the political, social, cultural, economical, technological and legal environment. For example McDonald’s is not opening its restaurants in those areas of Pakistan which are not secured.
3. Loyal customers
In Pakistan McDonald’s has got loyal customers. Many Pakistani people like the American food, which they find at McDonald’s. There are also some other American fast food restaurant in Pakistan but the loyalty of people are greater with the McDonald’s because of its quality food and better place for family.
1. Lack of Professionals
McDonald’s 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.
2. Less number of Franchises
The number of McDonald’s 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 McDonald’s is low as compared to its competitors.
3. High price of Food
The prices of McDonald’s 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.
1. Market Development
McDonald’s is following the market development strategy. Presently McDonald’s has 17 branches through out the country and covering only six cities. McDonald’s 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 McDonald’s 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
McDonald’s has a good opportunity to contribute in the social and charitable activities. It can also establish an institute similar to the Ronal’s McDonald’s in Pakistan. This will improve the public image of McDonald’s in Pakistan.
4. Lower Prices
Since the prices of McDonald’s product are lower, this is the hurdle in generating more revenue. So by lowering prices McDonald’s can attract large number of consumers.
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 McDonald’s.
2. War against Terrorism
Due to the current war on terror, McDonald’s has been facing some hurdles in Pakistan. McDonald’s 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 McDonald’s is one of the most popular American symbols, which of course puts it at risk when political upheaval begins.
3. Health Conscious Consumers
McDonald’s is dealing in food, which is directly related to the health of consumers. Therefore McDonald’s 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 McDonald’s. Some critics argue that the beef, which is used in the beef burgers of McDonald’s, is being imported from South Africa, which has had many cases of Mad Cow Disease.