Swot Analysis: SWOT Analysis Of Burger King

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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…
Variety - Burger King has a large number of Stock Keeping Units (SKUs). It serves a lot of varieties of burgers that are typically not available in competing fast food joints. 4. Low cost/large size products – Burger King has differentiated itself by offering large sized burgers. This size decision is so unique to Burger King that it has become the restaurant’s identity. Moreover, its low pricing strategy has the potential to pull in many customers, especially in a time when food inflation is higher that standard inflation. 5. Economies of scale – About 90% of Burger King outlets are franchises. This business model is not very capital intensive. Due to this, it is easily able to set up new branches, faster than its…show more content…
Health issues – There is a rising concern about health among the world population. Food being offered by fast food restaurants is considered unhealthy by many customers. High fat and high calorie food is not enjoyed by health conscious people. 2. Franchise management – Burger King does not operate all its outlets directly. Most of its outlets are franchise based. Implementing strict quality control in franchises is always a difficult task, especially since Burger King’s image is dependent very much on how the franchises are run. Management can make quality promises, but it is upto the franchises to implement them. 3. Advertising strategy - Burger King advertises its products in a manner different from its competitors. It focusses more on value-for-money rather that luring in customers by offering a rich experience. So, wealthy customers often choose the competitors over Burger King. 4. Global presence – Since setting up its first outlet in 1953, burger king has focussed more on local customers rather than trying to establish its brand across countries. Because of this, it has lesser international appeal. Its late entry in India stands testimony to this fact. Roughly 65% of its outlets are in the United States, which is risky because if the US economy faces a slowdown, more than half of Burger King’s operations is affected.

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