Swot analysis is a tool to set strategy in order to improve the business, and it represents the company strengths, weaknesses, opportunities and threats. This is the example of burger king:Strengths: Burger king has a strong brand name, which is well known all over the world. There are approximately 12,667 Burger king stores that are located in over 73 countries in the world. Therefore, burger king has a rich menu which is a good strategy to attract customers. And they are offering food that all teenagers nowadays love like hamburgers and French fries.
Weaknesses: As they are so many competitors in this industry, Burger king has low brand loyalty. Customers can easily switch to another franchise. Besides, employees don’t stay with burger king for long time so there is high employee turnover which make the company spend lot of money to train new staff. Also, burger king’s food is not healthy and it contains a lot of calories. Opportunities:Burger king can improve its menu by making it more diverse and healthy, so people can have more options.
Also ameliorate the taste of salads to make people enjoy healthy food, because even though they have salads on the menu, people don’t like the taste. Moreover, burger king can also focus on advertising especially on social media and billboards by making catchy offers to attract new customers like MacDonald’s. Threats:Firstly, Burger king has many strong competitors who dominate the market such as MacDonald’s and KFC which can easily affect burger king’s market share.
Second, nowadays people are becoming more conscious of healthy food which may change their behavior towards fast food. PESTEL analysis PESTEL refers to political, economic, social, technological, environmental and legal factors. And it is an analytical tool to study or to understand the macro environment of a business. And that help companies make strategies in order to overcome the external factors. Understanding the environment helps to increase chances while decreasing threats. As any business, burger king has to take into consideration the external factors which may affect its market. And for burger king case, these are the main factors:Political effects:Almost all government support globalization and burger king can benefit from that by extending and being more global. Also, burger king dominate in the first world countries which have a stable market so that means that the business is going to be stable in such political environment. Economic effects:Burger king is an international brand so it is affected by economic changes. The first external factor is expending international trade agreement which is a great opportunity for burger king to grow through global supply chain enhancements. Second, burger king sales can be negatively affected by factors like lifestyle and wage rate. In addition, focusing on external factors can be a good opportunity for burger king expansion mostly in developing economies. Social effects:Nowadays, people are becoming more aware of the importance of eating healthy food and that represent a threat for burger king because their product are classified as unhealthy food. Moreover, the rise in consumer diversity is an opportunity for burger king to improve its products in order to increase the number of consumers. Also, burger king sales can reduce if people in certain countries have some reservations about non local brands. Technological effects:Technology is becoming one of the main elements in almost all industries like in food industry. For burger king, the use of technology is an effective way to improve producing product and also to increase sales. Environmental effects:Legal effects:Before interring any country, burger king has to follow the import and exports rules to protect its sales and its brand image. Segmentation Market segmentation is to divide the market into smaller and homogenous groups depends on the similar need of customers. And it helps businesses to learn a lot about their customers and satisfy them more. And they are four segmenting variables which are geographic, demographic, psychographic and behavioral.Geographic segmentation:As geographic factors, burger king in morocco divides clients depending on the region. For example, they have opened a store in Marrakesh and Agadir because they are considered as the most touristic cities in morocco. Also, in Casablanca and Tangier they have their stores in the malls where many people gather.Demographic segmentation:Burger king are dividing the customer by kids, family, student and workers. For kids, they have special meals that contain a toy as a gift in it. Also for their parent they made it possible for them to design their own menu as they please. And for student and workers they make special offers with reasonable prices. Psychological segmentation:As psychological factors, the clients are divided by lower social category and working class. Which they usually need to buy what they want and get back to their work or schools quickly and that is something that burger king afford which is great and quick service.