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Market Analyses

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Submitted By miha321
Words 6991
Pages 28
McDonald’s | March 22
2010
| | Project 2 Market analyses |

Brief summary
SWOT analysis - The fast-food industry is highly influenced by governmental policies, sales rates are grooving even during the recession. The changing lifestyles of consumers to a healthier and quicker one can be seen as both- a threat and opportunity. As a threat- due to a healthier lifestyle McDonald’s as well as other fast food restaurants can lose many consumers. As an opportunity- as people are getting more and more busy due to their work, they do not have enough time to make meals at home, and they choose to eat at fast food restaurants. McDonald’s have good quality of service and promotions, which is also one of the reasons of successful marketing.
The main strength is of course their huge brand they built up. On the other hand the strongest weakness is the perception of the customers that look at McDonald’s as a very unhealthy place to eat.
Competitive situation – The competitive situation within the fast food industry is very hard. McDonald’s is the leader in this industry, but still it has to deal with big rivalry. There are many other restaurants and other substitute products that consumers can choose. A big variety of the “other possibilities what and where to eat” makes strong buyers power. While in the global market entry barriers are high (due to high expenses to establish a big company), in a more local market, these barriers are much lower because it does not require big capital to establish a small business (for example- pizzerias as a family business). The biggest barriers for potential businesses are that already established companies have access to raw material, technology, experience and customers loyalty.
Buying behaviour - Based on the questionnaire the customers are generally happy with McDonald’s for what McDonald’s is known for; easy food that is

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