Many fast food restaurants have entered the market with a promise of good food and quality services. However, McDonald’s and Burger King stayed strong and have constantly increased each market share despite the continuous proliferation of restaurants in the marketplace. Some people might be loyal to McDonald’s Big Mac, while some still prefer the Burger King’s Whopper regardless of persuasive advertisements of the competitors (Lindstom, 2005). McDonald’s
Just like other successful companies today, McDonald’s started with a small business in 1954 offering only few products to its customers until the salesman by the name of Raymond Albert Kroc was able to expand the business making it recognized in almost all countries around the world.
Kroc’s idea of opening several restaurants in different places was approved by brothers Dick and Mac McDonald. The first McDonald’s restaurant was built in Illinois and the brand name had stated to gain recognition from its customers.
From California to Illinois, the business of McDonald’s brothers has quickly gained unexpected revenue making them think of better ideas to increase the number of consumers (McDonald’s Corp.
, 2008). In 1963, the happy clown, Ronald McDonald was introduced and started to become an asset of the business. Along with the introduction of the McDonald’s mascot is the improvement of the market share of the business. The famous Big Mac had penetrated the market in 1968 and McDonald’s followed the introduction of happy meal to its young customers.
From 1974, numerous restaurants have been built in different countries around the globe.
Today, McDonald’s is included in the list of the most prominent brand in the world having a large market share despite the existence of many competitors in the marketplace. SWOT Analysis of McDonald’s: Strengths and Weaknesses The brand recognition from the customers can be considered as the greatest strength of McDonald’s. Apparently, the marketing communications of the company oftentimes focused on the brand loyalty of the consumers in almost two hundred countries around the world.
McDonald’s has undeniably become a fastest growing business because of the reliance of people to the foods that are being offered by the company. On the other hand, one of the weaknesses of McDonald’s is the negative image of their food to the public. Much publicity had already been released campaigning against the negative impact of McDonald’s foods to people. In fact, McDonald’s is being blamed for the constant increase of obesity rates. The super size foods in McDonald’s restaurant have been bombarded with a lot of negative feedbacks and created a bad public image.
Opportunities and Threats For a restaurant with a high level of brand loyalty like McDonald’s, aiming for a more successful business is definitely feasible. In terms of competition, McDonald’s is still able to regain their positive image despite the negative campaigns against them. Aside from that, McDonald’s still has the ability to add healthier lines of food to be served to the public. They can easily conform and even predict the preferences of their customers which make the company favored by the consumers other than its competitors (BBC Home, 2008).
The proliferation of fast food chains in the world can be the biggest threat for McDonald’s. Many restaurants are aiming to expand a business to reach the level of success of McDonald’s with different concepts and strategies to outwit the competitors. Burger King Burger King started in 1954 with the hard work of two businessmen by the name of James McLamore and David Edgerton. The goal of having his own version of McDonald’s business in California, McLamore has envisioned expanding his own business with the help of Edgerton.
The first Burger King restaurant was built in Miami, Florida offering quality products and services to its customers. The fire-grilled taste of Whopper sandwich was pioneered by Burger King in 1957 which also became a trademark of the restaurant. In 1963, the business started to expand internationally and the first franchised restaurant was built in Puerto Rico. Burger King also penetrated the Canadian market on the same year which became the land of Whopper due to the tremendous growth of business opening over one hundred restaurants in just few years (Burger King, 2008).
The start of 1970 brought a good fortune to Burger King. More franchised restaurants were built in other countries around the world. Since then, Burger King had succeeded in expanding the business and had its own position in the global market. Until now, Burger King is staying in the market continuing to serve customers from different parts of the world (Upshaw, 1995). SWOT Analysis: Strengths and Weaknesses Just like McDonald’s, the brand name of Burger King can be a great strength to increase the level of consumer’s recognition.
Moreover, the market has not yet been saturated with much advertisements of BK which can give them an opportunity to increase the potential market for the products. The marketing campaign could help the business to add more customers because BK has not yet used too much marketing communications to persuade the market. Since most of the restaurants are franchised, one of the weaknesses of BK is the lack of opportunity to easily change the public image to make it more persuasive to the customers. Making new concepts for the brand name could be hard because most restaurants are handled by different people from different countries.
Opportunities and Threats Developing a more strategic marketing plan is needed to regain the customer’s loyalty for BK. They could offer new products and update the menu to persuade the customers to buy from them instead of purchasing from other burger restaurants. The penetration of other fast food chains in the market could totally affect Burger King. Nowadays, many restaurants have been entering the market and gaining market share with their innovative marketing strategies. Aside from that, the campaigns against fast food products can have a negative impact on the business.