Swot of Burger King

Only available on StudyMode
  • Download(s) : 292
  • Published : July 5, 2013
Open Document


Text Preview
Strengths:
Strong market position
+Burger King is the world’s second-largest chain as measured by the total number or restaurants and system-wide sales. _ Greater franchise mix
+As a result of its higher franchise mix, the company is able to grow with minimal capital expenditure and is assured of regular income in the form of fees and royalties _ Strong financial performance

+Revenues and income have consistently grown providing a platform for future growth _ Global brand equity

Weekness:
_ Market concentration
+Though the company operation in 65 countries, its operations are heavily concentrated in the US and Canada. About 65% of its restaurants are located in the US and Canada. _ Scattered marketing campaign

+Fail to efficiently promote products, because they are to busy trying to promote “The King” character. _ Declining market share
_ Slowed revenue and income growth

Opportunities:
_ New products development
+Burger King value menu featuring six items at less than $1, breakfast sandwiches, specialty burgers. _ New opportunities in growing economies
+India, China, Singapore, Malaysia and Vietnam
_ Positive outlook for restaurant industry in the US
+The year 2009 would mark the 18th consecutive year of sales growth in restaurant industry +Well positioned companies will benefit from growing food service sector _ Reduce cost of entry for Burger King franchise

_ Expand in Asia market
_ Reduce underperforming outlets.

Threads:
_ Intense competition
+The company’s competition in the broadest perspective includes restaurants, quick service eating establishments, pizza parlors, coffee shops, street vendors, convenience food stores and supermarkets. _ Expiry of franchise agreements

+Of the 409 agreements that expired in fiscal 2006, only 47% were renewed and 28% were extended for similar periods. _ Mature industry
tracking img