Question

For your organization or an organization of your choice:

• Identify a number of relevant marketing strength and weaknesses.

Interpret these by asking what these strength / weaknesses suggest about the marketing strategies available to the organization?    

Answer 1

The SWOT analysis is the part of a marketing strategy that critically analyses your company and determines how your company will compete in the market place. This includes the strengths and weaknesses of the organization. For our discussion I have chosen McDonalds.

McDonalds is one of the oldest fast food producing organization. During their years of operation they have developed some solid marketing strengths. The two main strengths of McDonalds are:

• Strong Global Brand: McDonald’s has one of the most recognizable brands in the world. The company provides consistency in its food, so that you can get the same taste whether you’re eating a Big Mac in New York or Moscow. However, it also provides cultural diversity in the foods it offers based on the location of the restaurant, thereby adding to supplemental sales in each particular region. This is strongly evident in their marketing strategies in different regions of the world. The market their products according to the differing needs of a different region. The company’s success has allowed it to become the world’s largest fast food restaurant chain in the world.

• Diversified Income: Since the company is so large, with so many locations around the world, its total sales and earnings in different regions tend to offset one another. It has locations in nearly 120 countries, so if domestic sales are slumping, it’s possible that they could be strong in South America or Europe. As a result, the company doesn’t rely on one key source of income, unlike many of its rivals.

But with these strengths the organization does have its share of weaknesses too. Some of these are:

• Negative publicity: McDonald’s has always maintained the perception that its food is unhealthy, loaded with fat, carbs, salt, and sugar. Well, these perceptions are generally on point, as most items on its standard menu are relatively unhealthy. The chain has been widely criticized for promoting unhealthy eating habits, leading many of its customers to put on pounds. As a result, many health conscious consumers don’t even consider having a meal at McDonald’s, despite its efforts to introduce healthier options.

• High Employee Turnover: Most jobs at McDonald’s are low skilled and low paying. As a result, there is a significant amount of employee turnover. Many employees don’t take the job seriously, or only do it for short periods of time, and this leads to lower performance. Since there is so much turnover, training costs are high, pressuring the company’s bottom line.

McDonalds has always marketed its products efficiently. Using the above strengths the organization can sort to market its main strength i.e. of high quality and unified taste regardless of its location. This can form as one of the strongest marketing strategies available to the company. Also to curb the effect of their weaknesses on their image as well as profits, McDonalds should start marketing its healthy food options like salads. This will help erase the negative publicity that the organization attracts due to its other menu options.