McDonald’s Pakistan SWOT Analysis

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.

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 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.