Topic > McDonald's Corporation: SWOT Analysis of McDonald's

History McDonald's has been a renowned corporation for just under a century from a few decades. The original McDonald's restaurant began in “1940 as a barbecue restaurant in San Bernardino, California” (McDonald's History, n.d.). “The McDonald's drive-in restaurant opened in 1948 as a self-service drive-in restaurant” (McDonald's History, n.d.). In 1949, the now well-known McDonald's French fries “made their debut” (McDonald's History, n.d.). The first location outside California, in Illinois, opened in 1955 with Golden Arches designed by Stanley Meston (McDonald's History, n.d.). In 1958, “McDonald's sold its 100 millionth hamburger” (McDonald's History, n.d.), and in 1959 McDonald's opened its 100th restaurant (McDonald's History, n.d.). OnMcDonald's is a very established global organization with a well-known brand. One of McDonald's strengths is its "strong brand equity and market leadership" (McDonald's Corporation SWOT, 4). McDonald's ranks high in customer base serving over "69 million customers" (McDonald's Corporation SWOT, 4). “Focus on positioning as a family and value restaurant brand” is another strength of McDonald's (McDonald's Corporation SWOT 5). The restaurant has many prices that allow it to satisfy more than one person. McDonald's also has weaknesses that can affect its long-term business goals. The company's weaknesses include "tax evasion and lawsuits" (McDonald's Corporation SWOT 6). These weaknesses arise from tax evasion problems abroad. Tax evasions come from “the company uses royalty payments from foreign affiliates and subsidiaries in major markets to funnel profits to tax sanctuaries” (McDonald's Corporation SWOT “Competitive Rivalry or Competition (Strong Force)2. Bargaining Power of Buyers or customers (strong force) )3 Bargaining power of suppliers (weak force)4. Threat of substitutes or substitution (strong force)5 force)” (Gregory 2015). (Gregory 2015).If McDonald's can use new products to stand up to rivals, it could help push them further ahead of the industry what they already are. They also have to deal with the fact that customers provide the primary source of energy for the market. This power comes from the idea that they want to be continued customers of McDonald's. The customer can easily switch to another fast food chain, such as Wendy's, Burger King, and "food outlets, artisan bakeries, and groceries." that you could cook at home” (Gregorio 2015). “Customer loyalty” (Gregory 2015) is an important part of McDonald's