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Implementation of SWOT Analysis on McDonalds, KFC and Subway


SWOT Analysis of Business Tycoons of Fast-Food Industry

The fast-food industry that originated from America in 1921 is now the fastest growing industry around the globe. As, the demand unwavering and so the challenges opportunities and threats are borne every coming day. That's why many masters essay writers chooses this industry for conducting a SWOT analysis to have a better understanding.

SWOT Analysis of McDonalds

With the help of the swot analysis templates you may easily understand what possible strength, opportunities, threats and weakness McDonalds comprise of.   

Strength of McDonalds

McDonald’s Delivery Services:

Recently McDonald is working on making delivery experience of customers more customer-friendly. On the other hand, they are collaborating with Uber to launch UberEATS app to food lovers to get their favourite food at their doorsteps. Therefore, many British Writers describes this strategy as one of the strongest points of McDonald's against competitors.

Strong Brand Image and Brand Equity

According to a published statistic in the United Kingdom, customers define McDonalds' brand as very consumer-friendly, family-oriented, and convenient. That is the reason why, McDonald holds a very strong brand image and equity in terms of customer satisfaction and market share. In spite of strong competitors likes KFC Subway etc. McDonald is always successful in sustaining a good image in hearts of it’s customers.

Strong Customer Relations

According to an annual survey of Essay Writing UK, McDonalds has been able to sustain it’s competitive position in market due to it’s dynamic customer relations, brand imaging, cost structure and patent.

Cost Efficient

Since its franchises are spread all over world therefore, it has the benefit to spread it’s cost all over.

Weaknesses of McDonalds

Declining Brand Image:

Due, to high level of fats and calories in it’s products, many health issues have been arisen and competitors like Subways are taking advantage of it.

Lack of Product Differentiation:

Where Subways like competitors are coming up with several new offerings, McDonalds is still on it’s way to come with more offerings parallel to them. That’s why many diet cautious customers have been switching towards healthier options.

Slow Financial Growth:

Due, to arising issues as discussed above, McDonalds is facing slow revenue and income growth.

Employee Turnover:

As many jobs at McDonalds required low skill, therefore paid less, due to which McDonald is subjected to high turnover.

Opportunities for McDonalds

Creating New Markets:

By launching high-margined caffeinated beverages and smoothies, health cautious and coffee lovers would be attracted hence a new market opportunity will arise.

Expansion Bringing More Profits:

Through, launch of 3,500 restaurants globally and increasing the global franchised percentage from 81% to 90% McDonalds will be able to be more streamlined, cost-efficient, and more stabilized.

Being technology initiator

Its seem that many opportunities will be opened to McDonalds with it’s several upcoming plans related to technology like “Experience of The Future” and UberEATS etc.

First to introduce Yuan denominated Bonds 

After issuing yuan-denominated bonds in Hong Kong McDonald has become the first foreign company to do so, hence increased it's influence in the region and surrounding areas.

Threats for McDonalds

McDonalds Vulnerability to Western market decline

Due to the declining situation of western markets, the UK's market is subjected to low profitability and returns. Whereas, McDonalds with slow financial growth does seems to slow down.

Government Regulations towards Health

Whether it is the English government or any other, health is always been a priority for it, therefore, there is a high chance of implementing strict regulations regarding the fast-food industry. McDonalds has to consider this threat seriously.

Fluctuations in Foreign Exchange Rates

Due to serious fluctuations in it's targeted marketing regions, McDonalds is facing return fluctuations and this fluctuation could get more drastic.

Fluctuations in Commodity Prices:

 This affecting cost efficiency of McDonalds, Hence considered a major threat.

SWOT Analysis of Subway 

Strengths of Subway

Providing Customized Meals:

When it comes to have a healthier or any other sort of meal, only Subway pops up in mind that’s why Subway has created a unique market place in a market.

Shaking Hands with Britain and US Health Associations:

Of course who won’t trust an eatery heaven if it's also accredited by health association of two most important countries of the world. No, other fast-food company can prove it's self completely health-friendly.

Easy Start-Ups:

The start-up costs of Subway are very low as compared to their competitor that’s why subway stores are expanding rapidly.

Largest Food Chain Restaurants:

With 38,181 restaurants in 99 countries, Subway has left behind McDonalds and other competitors.

Weaknesses of Subway

Rapid Employee Turnover

As, the nature of jobs at Subway is less skilled and lowly paid, the cost incurred for training and development are expensive and time consuming.

Inconsistent Services at Stores

This has been a huge problem for Subway as if a customer is satisfied at one store he/she may not be satisfied at another.

Creativity less Outlets

Subway needs to work on interior designs of its store to make a customer feel welcomed.

Unhappy Franchisee:

Due to exercising too much control over its franchisees, Subway is not welcomed much as a franchiser.

Opportunities for Subway

Creating Awareness for Healthier Food:

Subway has differentiated it's food offerings by proving it's health-friendly, so creating awareness for healthier food will attract consumers to Subway.

 Offering Product Differentiation:

Just like competitor McDonalds, Subway can also come up with various product offerings like McCafe, McExpress, and McStop.       

Drive-thru Restaurants:

This sort of restaurant chain has always been a sensational appeal to consumers, if McDonalds can exploit its magic why not Subway can also?

Offering Meals at Door-Steps:

It is said, that the more you will make consumer cozy the more consumer would love you. Therefore, by launching delivery at doorsteps will surely create a stronger position parallel to competitors.

 Threats for Subway

Saturated Fast-Food Industry

Since in developed countries the fast-food industry is already saturated to brink, that’s why any folly may result in getting out of race.

Delicious Local Delicacies at Healthier Options:

Due to rising health awareness, local eateries have been upgrading their menus to ore healthier options hence creating a huge threat for Subway as what local eateries offer is more suitable to taste of local consumers.

Foreign Currency Fluctuation:

Dollar is appreciating against other currencies therefore it is negatively affecting the profitability of the Subway as many countries’ currency is subjected to depreciation.

Consecutive Lawsuits:

Subway has been subjected to multiple lawsuits therefore; these lawsuits are considered as a major threat to the Subway's goodwill, cost management, and brand image.

SWOT Analysis of KFC

2ND Largest Food-Chain:

Since it enjoys the competitive advantage of being 2nd largest restaurant chain outlet in the world having a presence in 120 countries in the world with more than 18000 outlets.

Strengths of KFC

Fortunate to Have Yums as Parent Company

Yums is included in fortune 500 companies of the world, it's subsidiary are famous companies like Taco Bells and Pizza Hutt, therefore, KFC gets lots of leverage from it.

Keeping Happy both Veg & Non-Veg:

Where it offers a finger-licking chicken menu, it also provide delicious veg offerings, hence it has become a sound strength of KFC.

Having a recipe which is a top-secret:

KFC original recipe by Sanders under name of “11 herbs and spices” is kept completely confidential in KFC’s Louisville headquarter. Therefore, imagining what’s going on in Kitchen of KFC is hard whereas, competitors are always guessing.

Weaknesses of KFC

Unable to Address Health Issues

 Since the fast-food industry is subjected to countless objections regarding health and hygiene, and with KFC not being able to address these issues has weakened it's position in the heart of health-conscious consumers.

Conflicting Franchise Management

The number of outlets is increasing, whereas, franchise management is becoming a problem due to which many conflicts between franchisees and franchisers are arising.

Employee Turnover:

Due to low wage rates at KFC, employee turnover is high, whereas, KFC invests so much in training it’s staff that overall expense rises.

Quality Control:

Since the number of franchises is increasing KFC finds difficult to maintain it's quality level, due to which it's brand image is being affected.

Opportunities for KFC

Continuity in Product Development

Through upgrading menus with healthier options and other offerings in demand, KFC has a lot of opportunities to enter new markets. As it has a strong brand image.

Upgrading Technology

Like it's competitors, KFC will also be benefited from upgrading it's delivery system and dining experience its latest technology. For which, the Consumers are attracted towards what is more satisfying for them.

Increasing Wage Rate

KFC is already investing in it's human capital unlike it's competitors, therefore increasing the wage rate slightly will help the KFC to beat it's competitors in the arena of employee turnover.

Becoming Lean Organization

It will help the company to overcome its quality-related issues regarding increasing franchises. Hence once this problem is overcome, KFC will be a daunting figure for it's competitors.

Threats for KFC

Price Insensitivity:

Due to higher prices as compared to it’s competitors, it’s getting out of reach of middle class belonging to any country.

Rising Health Issues:

Rising health issues has changed the perspective of today's consumer's meal intake, which is a huge threat to the KFC as it is a bit behind in terms of offering healthy food compared to it's competitors.

Rising Conflicts of Franchises

Due to these conflicts, many franchises are being closed, and if that keeps on continuing than this would seriously affect the brand image of the company.

Severe Competition

The rapid growth of KFC rivals also poses a severe threat to the stability of KFC.

Final point

For all this information given above the fast food industry is facing tough competition as well as trying to improve their quality for better customer’s satisfaction. Along with that, there is a transformation of newer technology innovation and consumers perceptions changes which need to be catered at a maximum base.

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