Burger King’s position as one of the biggest players in the quick-service or fast-food restaurant industry is partly based on the strategic fit shown in this SWOT analysis. The SWOT analysis model examines the strengths, weaknesses, opportunities, and threats most significant to the firm. As a food service business, Burger King uses its strengths to compete with other multinational firms, like McDonald’s, KFC, Wendy’s, Subway, and Arby’s, as well as Starbucks, Dunkin’, and Tim Hortons. Also, the company must consider the threats and risks linked to the global fast-food restaurant market. This SWOT analysis indicates that Burger King will remain one of the major players in this market.
This SWOT analysis of Burger King indicates the importance of product diversification, quality enhancement, and product innovation. These considerations can bring business operations closer to satisfying Burger King’s mission statement and vision statement. The SWOT factors (strengths, weaknesses, opportunities, and threats) determine the options for ensuring success in the food service market. In this SWOT analysis, the results of the internal analysis (strengths and weaknesses) and external analysis (opportunities and threats) identify issues relevant to the fast-food company’s strategies.
Burger King’s Strengths (Internal Factors)
The restaurant company’s strengths are based on business capabilities. This part of the SWOT analysis determines the internal strategic factors that create business capacity for continued development. The following are Burger King’s strengths:
- Strong brand image
- Strong market presence based on high market penetration
- Moderate differentiation of products
Burger King is one of the strongest brands in the industry. This condition makes it easier for the company to open new restaurants and introduce new food and drinks. The strong market presence based on high market penetration is a strength pertaining to the large number of Burger King restaurants around the globe. Also, the company’s moderate differentiation (e.g., flame-grilled burgers) is a strength that imparts uniqueness to the company and some of its products. This differentiating factor is a result of Burger King’s generic strategy for competitive advantage and accompanying intensive growth strategies. In this part of the SWOT analysis, Burger King’s strengths show the importance of branding and market penetration.
Burger King’s Weaknesses (Internal Factors)
The food service company’s weaknesses are linked to its business model and general strategic approaches. The internal strategic factors that reduce or limit the firm’s effectiveness are identified in this part of the SWOT analysis. The following are Burger King’s weaknesses:
- Imitable business model
- Limited product mix
- Limited control on franchisees
Even though Burger King has moderate differentiation, one of its weaknesses is that its business model and products can be imitated. For example, other firms can offer grilled burgers. Also, the SWOT analysis model identifies the limited product mix as a weakness because it prevents the quick service restaurant chain from attracting customers who are looking for more options. Whopper sandwiches and other menu items are attractive, but the overall variety of the food and beverage offerings remains limited. Furthermore, even though Burger King grows internationally through franchising, the franchising model is a weakness because it limits corporate control on franchisees’ approaches to management. This franchise system is a factor in the implementation of the distribution strategy in Burger King’s marketing mix or 4Ps. In this part of the SWOT analysis, the limited product mix is a weakness that the fast-food business can readily address.
Opportunities (External Factors)
The fast-food company’s opportunities present options for business growth and development. This part of the SWOT analysis shows the external strategic factors that the firm can use to improve its performance. The following are Burger King’s opportunities:
- Product diversification or product mix widening
- Market development for food and beverages
- Stronger competitiveness based on service quality improvement
Burger King has an opportunity to widen its product mix by adding new product lines to attract more customers. Also, the company can establish new operations as part of market development to increase revenues and gain a larger share of the food service market. Moreover, the restaurant chain has an opportunity to increase service quality as a way of further differentiating its business from competitors. Burger King’s operations management approaches and productivity measures can support efforts for this opportunity on quality enhancement. In this part of the SWOT analysis, Burger King’s opportunities require new strategies, especially in product diversification and market development.
Threats (External Factors)
The threats to the quick service restaurant chain emphasize market conditions. The external strategic factors that limit or reduce business performance are shown in this part of the SWOT analysis. The following are the main threats to Burger King:
- Aggressive competition
- Imitation
- Healthy lifestyles trend
Aggressive competition is a threat in the fast-food industry, considering other multinational restaurant chains. The saturated market imposes strong competitive pressure on the business, as explained in the Five Forces analysis of Burger King. Also, the company’s business model is imitable, leading to the threat of imitation by new entrants in the fast-food market. Additionally, the healthy-lifestyles trend is a threat because it tends to criticize unhealthy diets frequently associated with fast-food companies. This external factor relates to Burger King’s stakeholder management and corporate social responsibility to consumers. Based on this part of the SWOT analysis, Burger King can improve its food and service to address the threats of aggressive competition and the healthy-lifestyles trend.
Insights and Recommendations based on this SWOT Analysis of Burger King
Burger King’s focus is on market penetration, with a considerable degree of product innovation. However, based on this SWOT analysis, the company may need to adjust some of its strategies to maintain competitiveness in the quick service restaurant market. The following strategic adjustments can address some of Burger King’s most significant concerns:
- Diversify or widen the product mix to address current product-mix limitations.
- Increase service quality.
- Improve products to address changing consumer preferences in favor of healthy lifestyles.
References
- Burger King – About Us.
- Burger King Franchising – International.
- Restaurant Brands International Inc. – Form 10-K.
- Taherdoost, H., & Madanchian, M. (2021). Determination of business strategies using SWOT analysis; Planning and managing the organizational resources to enhance growth and profitability. Macro Management & Public Policies, 3(1), 19-22.
- U.S. Department of Commerce – International Trade Administration – Travel, Tourism & Hospitality Industry.
- Vlados, C. (2019). On a correlative and evolutionary SWOT analysis. Journal of Strategy and Management, 12(3), 347-363.