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Mc cafe weakness

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Weakness

-Slow reaction to the market
The McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Therefore,It has a huge and complex structure,which means its reaction to the market might be slow.Moreover,Starbucks launched mooncakes for Chinese Mid-autumn festival,combining Chinese and western cultures together and creating a new trend of mooncakes. Compared with Starbucks, McCafé’s indigenization in Hongkong seems not so successful.

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-Noisy and non-working ambience
McCafé store is usually set up beside McDonald’s store.

Under the condition that there is a large flow of customers in McDonald’s everyday, McCafé will be too noisy and uncomfortable to stay long.Yet some people go to a café just for the reason that they need a place to read, to think ,to work,or to have some personal time. For this kind of consumers , McCafé will not be their choice.

-Reputation relatively low
McCafé was created in 1993, which means it is only 20 years old up to now.

Compared to Starbucks, who started its coffee life in 1971, McCafé is too young to earn such a big name as Starbucks.More people tend to choose a NO.1 coffee chain to drink high quality coffee, instead of McDonald’s,a company which is known for delicious hamburgers. Starbucks had set up about 16 ,680 stores all over the world by 2008,while there were only 1,300 McCafé worldwide at that time.

-Dependent on McDonald’s business
Being a relatively small part of McDonald’s overall strategy, McCafé depends very much on McDonald’s business. McCafé is usually set up beside or inside McDonald’s store,thus some of its customers are attacted by McDonald’s.Regarded as a part of McDonald’s, McCafé is bundled with McDonald’s.

-Offer unhealthy high calorie foods
McCafé offers about 30 different kinds of drinks and about 10 kinds of desserts,most of which contain high calories and high cholesterol. In addition,too much coffee can lead to health problem,such as sleeplessness,calcium deficiency,and even cancers. Nowadays,more and more people in Hongkong tend to choose a healthy lifestyle,reducing the demand of fast food.Not only McCafé, but also McDonald’s business in Hongkong will be influenced.(In 2003 , Morgan Spurlock shot a movie named Super Size Me,which suggested that McDonald’s food was one of the factors to cause Americans’ obesity.)

Threats

-Plenty of substitutes
There are many local drinks in Hongkong,such as herbal tea, milk tea and Chinese tea.Besides, canned drinks are also welcomed by most people in Hongkong.Some people such as the old and the middle aged may prefer the traditional Chinese drinks than coffee.Thus the market shares for McCafé is limited.

Cite this Mc cafe weakness

Mc cafe weakness. (2016, May 24). Retrieved from https://graduateway.com/mc-cafe-weakness/

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