McDonald’s Pakistan SWOT Analysis

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.  

Strengths

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.

Weaknesses

 

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.

Opportunities