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Orense, Aiziel D.

AC2A
STRAMA
July 16, 2021

BURGER KINGS’ SWOT ANALYSIS

Burger King absolutely has the ability to keep its position as one of the biggest
players in the quick service/fast food restaurant industry. This SWOT analysis model
examines the strengths, weaknesses, opportunities and threats that are most beneficial
to the firm. As a food service business, Burger King must use its strengths to compete
against giants like McDonald’s and JFC. In addition, the company must consider the
threats and risks linked to the global fast food restaurant market. It is expected that
Burger King will remain one of the major players in this market.

Let’s go further with how Burger King will be defensive towards competitors.
Burger King’s strengths are based on the company’s business capabilities. This part of
the SWOT analysis determines the internal strategic factors that create business
capacity for continued development. Burger King’s main strengths are as follows:
● Strong brand image
● High market penetration
● Moderate differentiation of products
Burger King has names as one of the strongest brands in the industry. This
condition makes it easier for the company to open new restaurants and introduce new
products. Also, Burger King’s moderate differentiation (e.g., grilled burgers) is a strength
that allows the company to ensure uniqueness of some of its products.

Burger King’s Weaknesses

The following are Burger King’s main weaknesses:


● Easily imitable business
● Limited product mix
● Low control on franchise model

Since the products are made easy to be imitated this can be their weakness. For
example, other firms could offer similar grilled burgers. Also, Burger King’s limited
product mix is a weakness because it prevents the company from attracting customers
looking for more options. In addition, even though Burger King grew internationally
through franchising, the franchising model is a weakness because it limits corporate
control on franchisees’ approaches to management. In this part of the SWOT analysis,
the limited product mix is the weakness that Burger King can most easily address.

Opportunities for Burger King are considered as external factors. The


opportunities for Burger King present options for business growth and development.
Burger King’s opportunities are as follows:
● Diversification/product mix widening
● Market development
● Service quality improvement
Burger King has the opportunity to widen its product mix by adding new product
lines to attract more customers. Also, the company could establish new businesses or
subsidiaries as part of market development to gain more revenues while reducing the
effects of market risks. In addition, Burger King has the opportunity to increase service
quality as a way of differentiating its business from competitors like McDonald’s.

Threats Facing Burger King also from external factors


The threats against Burger King emphasize market conditions. The following are the
main threats against Burger King:
● Aggressive competition
● Imitation
● Healthy lifestyles trend
Burger King faces the threat of aggressive competition, considering other firms like
McDonald’s and Wendy’s. The company’s business model is also imitable, leading to
the threat of imitation by new entrants. In addition, the healthy lifestyles trend is a threat
because Burger King’s products are criticized as unhealthy.
I honestly recommend that Burger King’s current focus is on market penetration, with a
considerable degree of product innovation. However, based on this SWOT analysis, the
company needs to adjust some of its strategies to maintain competitiveness. Burger
King can implement the following recommended strategic adjustments to address some
of its most significant concerns:
● Diversify/widen product mix to address current product mix limits
● Increase service quality
● Improve products to address the healthy lifestyles trend

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