As a prominent market leader, McDonalds faces an extensive degree of threats. This paper shall shed light on the threats faced by McDonalds as well as the opportunities to which McDonalds is currently exposed.

With regard to the threats Mc Donald’s is facing, the most prominent is that of increased competition from local competitors across the world.

The reason for this is that as consumers are experiencing decreasing disposable incomes, they are forced to scale back their expenses and to exercise savings in every area possible. As a result, they are reverting back to local fast food restaurants from which they shifted to McDonalds to begin with (Data Monitor). These fast food restaurants provide consumers with nothing more than the core product. But consumers who have fallen into the lower income groups as a result of the recession are willing to lose the augmented product that McDonalds provides them. This is because in countries where the economy is under developed or is in the first phases of development, consumers are beginning to consider eating at multinationals like McDonalds to be an act of extravagance. Hard economic times have caused consumers to re-evaluate their options and to consider cheaper domestic options.