Burger King SWOT Analysis Essay
“Burger King, the second-largest Burger chain in the United States, behind McDonald’s according to (Velasco, S. 2012)”. Burger King Corporation was founded in 1954 by James Mclamore and Daniel Edgerton, beginning the Burger King legacy of flame broiled beef and commitments to quality ingredients and friendly service (Burger King 2012). Burger King continues to make a positive impact in the community through their vision for food, speed, and customer experience.That’s why there mission statement is “We prepare and sell quick service food to fulfill our guest needs more accurately, quickly, courteously, and in a cleaner environment than our competitors.
We will conduct all over business affairs ethically and with the best employees in the mild south. We will continue to grow profitably and responsibly and provide career advancement opportunities for every willing member of our organization. ” (Farfen, Barber 2012).Burger King Organization has strengths and weakness that sets them apart from there increasing competition. This could adversely affect the company’s market shares and margin. One of the organization strengths is strong market position. Burger King holds about 15% of the fast food hamburger restaurant (FFHR) market in the US. This strength is distinctive competence because the company leverages its strong market position to gain economies of scales and increase its bargaining power.
(Burger King Swot Analysis 2007). A second strength is brand image.Burger king serves one of the world’s favorite and well-known brands including the whopper sandwich, the tender crisp, chicken sandwich, chicken tenders and the BK Veggie Burger. This strength is distinctive competence because the company’s established brand image has enabled it to penetrate various global markets and complete with regional players effectively. (Burger King Swot Analysis 2007).
One of the organization weaknesses is market concentration. Burger King operates in 65 countries, its operation are heavily concentrated in the US and Canada.To minimize this weakness we must focus on is concentration of operations in one geographic area increases company’s exposure to local factors such as adverse economic situation, labor strikes and changes in regulations that can affect its operation. (Burger King Swot Analysis 2007). A second weakness is weak operating performance. Burger King has recorded weak operating performance in the past few years. The economy is not always to blame when it comes to restaurants closing. Other factors also play into the often unpredictable restaurant scene.
When profits are gone, the first place you look is to see who is taking the most money off you. And the answer typically is the franchiser. (Jennings, L.
2011). One of the organization opportunities is new products. In an effort to fill product gaps in its offerings, a Burger King plan is to introduce more than 15 new products and product enhancement yearly.
This great opportunity for the organization, because these new product launches are expected to drive the company’s revenue growth. (Burger King Swot Analysis 2007).Another opportunity is small restaurants Burger King Management has developed a new restaurant prototype that is smaller in size.
The new design reduces the averages costs to build a new restaurant by approximately 25% with this new format. The lover capital investment is expected to attract more franchises and increase average restaurant operating profits. (Burger King Swot Analysis 2007). One of the organization threats is intense competition.
Burger King faces intense competition from international national, regional and local retailors of food products.The company’s competes on the basis of price, convenience, service and quality of food products. Competitors could encroach into Burger King market share and adversely affect its margins (Burger King Swot Analysis 2007). A second threat is spread of bird flu sporadic outbreak of bird flu is exerting a down ward pressure on the consumption of poultry products all over the world. Chicken products have become a central part of Burger king’s offering. Burger King has operation in many Asian markets such as China, Malaysia, and Thailand.If bird Flu assumed epidemic proportions or become a pandemic, than revenue growth of the company is likely to slow down.
(Burger King Swot Analysis 2007). Burger King the second largest Burger chain in the United States. Continues to thrive and impact the community through their vision for food, speed and customer experience. The organization can steady capitalize on the opportunities that are occurring if they plan to continue to introduce new products, promote enhancement and also develop more restaurants prototype that is smaller in size.Which will attract more franchisement and steady increase average restaurant operating cost? Burger King can neutralize there threats that are occurring, If they stop competing on the basis of price, convenience, service and quality of food products.
Other Burger fast food restaurants will always try to take advantage advertising new products and raising their sales.References:1. Velasco, Schuyler. (2012, Jan 19). Burger King Delivery: Have it your way.
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Burger King Corporation SWOT Analysis (2007). Burger King Corporation Swot Analysis 1. 5. Jennings, Leach. (2011). Chains Practice Franchise. Diplomacy Nation’s Restaurant News, p 45 (21), 1-18.
6. Griffin, Ricky 10th Edition. Management Copyright 2011 South-Western College