Burger King has been in existence for the last 65 years. Their main area of focus has been the fast-food industry. Burger King had its tiny and humble beginnings in Florida and has become one of the leading fast-food chains in the world. Burger King’s SWOT analysis is an excellent reflection of what it takes to succeed in the industry.
Below is Burger King’s SWOT Analysis.
Burger King’s Strengths
- Global expansions: Burger King has 18 838 operational stores. The company has maintained positive global growth, increasing its recognition globally. Burger King is the sixth-largest fast-food chain globally, with 18,700 locations in over 100 countries and outside the United States.
- Strong Brand Image: Burger King has such a strong brand image that they use to realize what their goal is in the long run. The company has made considerable investments in marketing campaigns and strategies through different online social media platforms. The intense marketing efforts of Burger King gave them the brand Marketer of the year in 2017 by the Cannes Lions International Festival of Creativity. The fierce marketing campaigns have given Burger King a considerable following and brand popularity globally.
- Strong leadership: Among its major strengths, one thing that stands out about Burger King is its strong leadership by its CEO, Denial Schwartz. Denial has used different strategies and the company’s culture to help scale Burger King to greater heights. The company’s incredible culture and management system allow Burger King to stay up to date with changing trends in the market and keep up with them.
- Robust Franchising Model: Burger King has such a strong franchising model that has allowed them to grow in profits and revenue. At least 90% of the company’s different locations are run by franchisees, making expanding to newer markets seamless.
- Innovative offerings: Burger King’s secret to keeping attracting customers and having existing customers return is to offer unique foods. The company dedicates its time to creating creative menus that attract more customers to their different restaurants.
Burger King’s Weaknesses
- Franchising Business Model: This is the most predominant weakness of this organization. While franchises are helping generate company revenue and increase profits, the franchises are reducing the original model’s sustainability. Suppose Burger King should depend entirely on the franchise as the primary revenue stream. In that case, conflict may arise with other franchise owners, which may affect the company’s cohesiveness in the long run.
- Over-dependence in the US market: Burger King has a significant presence in various locations outside the United States but is overly dependent on the US market. 44% of the company’s restaurants are based in the United States.
- Controversies and negative publicity: Several controversies have surrounded Burger King over time, giving them a negative perception and promotion among the masses. The main controversy is being known for selling unhealthy foods while customers are focusing more on healthy options.
- Misleading Ads: There have been misleading ads about Burger King that have negatively affected the company’s reputation. We live in times where most customers are health conscious, and any product that jeopardizes this for the customer puts the entire organization at stake.
- Lack of stability: Since Burger King’s inception, over 20 CEOs and different owners have been there. The lack of strength in this organization destabilizes its operations any time there is a change in leadership. The good thing is that the recent owners and current owners have given the organization higher stock value.
Burger King’s Opportunities
- Increase in more plant-based options: Burger King made a profit increase of over 30% in the recent financial year. This was after the launch of the Impossible Whopper, which is their healthy sandwich. For the company to generate more revenue and increase its customer base, there is a need to pursue the option of offering more nourishing foods.
- Diversify its portfolio: Instead of focusing on the restaurant business only, Burger King can open grocery stores and will not have to primarily rely on its restaurants to supply the Impossible Whopper Sandwich.
- Expand in emerging economies: Burger King is focused on the US markets but can make greater profits by concentrating a little more on emerging markets. With the company’s presence outside the United States, there is a likelihood of a more specific time transitioning into more foreign markets.
- Strengthen the market presence: Burger King should make a point of having a more substantial presence in their operating locations, which will prevent customers from going to competitor restaurants. With the company’s need to have a solid market presence, they have put strategies to establish more restaurants.
- Increase ventures in-home delivery and tech usage: More consumers rely on technology and change their purchasing patterns. Burger King should take advantage of these new and emerging trends and deliver to customers’ expectations. They should take advantage of improved technology to communicate further with their customers and analyze what to incorporate into business to make it better.
Burger King’s Threats
- Stiff competition: Several fast foods are in operation both locally and internationally. Therefore, Burger King is engaged in a fierce war to ensure that the company’s profitability, market share, and sustainability are on the line.
- Increased emphasis on healthy eating: Health-conscious consumers are growing by the day. Burger King’s products have already been viewed as unhealthy, posing a significant threat of customer loss. Burger King is likely to lose customers to restaurants offering healthier foods.
- Environmental issues: Animal products are causing climate change, and Burger King tends to attract controversial claims from environmental activists.
- Prices of raw materials: The more the raw materials increase in price, the greater the negative effect on Burger King’s pricing model. Therefore, there is increased pressure for Burger King to come up with better production methodologies.
Burger King’s SWOT Analysis Mind Map
Burger King is already in a negative light for selling unhealthy foods to customers, which may translate to the loss of these customers. Burger King needs to dig deeper into the opportunities and incorporate better strategies that will help retain their customers by offering them healthier options.
Burger King has been doing well from the time of its inception. However, the company’s threats can only be countered by indulging in the opportunities to make a difference. If Burger King fails to make an immediate change, there lies a significant risk of losing their loyal customers to their competition.
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