Burger King Swot Analysis
SWOT ANALYSIS STRENGTHS 1. Popularity – Burger King has a popular brand identity, which has been enhanced by the placement of the company and its products through varied advertising programs. Its jingles, slogans, tie-ups with popular brands, and innovative advertising campaigns helped in maintaining a positive perception among customers. An example of successful advertising is a 10-movie promotional tie-up with Disney in 1990s, including films such as Aladdin (1992), Beauty and the Beast (1991), The Lion King (1994), and Toy Story (1995). [1] 2. Brand loyalty – Burger King enjoys a very good brand loyalty among its consumers due to which it is able to retain customers even during adverse circumstances. To test its brand loyalty, burger …show more content…
Food Inflation - Food costs are increasing at a higher rate than standard inflation, which has resulted in more and more people cutting down on fast foods. PORTER’S FIVE FORCES I. BARGAINING POWER OF SUPPLIERS 1. Cost - Supplier switching costs are low since raw materials for burgers are cheap. This means Burger King can easily switch suppliers, giving any one supplier less bargaining power. 2. Substitute inputs – The critical production inputs used by Burger King to make its products have many substitutes. So, it can buy the ingredients from multiple sources. 3. Supplier concentration - Production inputs are very common, and there are many suppliers who supply similar raw materials. So, there are a large number of suppliers from whom BK can buy raw materials. All of the above factors imply that the suppliers to Burger King have very LOW bargaining power. II. BARGAINING POWER OF CUSTOMERS 1. Product differentiation - When customers cherish a particular product, they do not mind paying more for it. They also do not easily change their preferences. So, high customer loyalty results in low bargaining power of customers. 2. Numbers of buyers - A large number of customers have food from Burger King. This limits the bargaining power of a single customer by a great
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