Burger King Swot Analysis [Update 2022] ❤️

Burger King Swot Analysis 2022

The SWOT Analysis that is provided by Burger King analyses the brand through its strengths weak points, weaknesses, opportunities, and threats. 

When you look at Burger King SWOT Analysis, the strengths and weaknesses are internal factors, while potential and dangers are external aspects.

burger king swot analysis

SWOT Analysis is a tried and tested management tool that allows brands like Burger King to benchmark their business and performance compared with their rivals. Burger King is one of the top companies in the food and beverages industry.

The table below provides the Burger King SWOT (Strengths, Opportunities, Weaknesses, Threats) and the most prominent Burger King competitors and includes the market it is targeting segmentation, positioning, and the Unique Selling Proposition.

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Burger King Company Background

Name Burger King
Industry Fast-food chain
Founded 1954
Headquarter Miami, Florida, U.S.A 
CEO Daniel Schwartz
Revenue USD 1.78 billion (2019)
Competitors McDonald’s, Wendy’s, KFC   

Introduction:

Burger King is among the most popular QSR brands around the globe. It is the second-largest fast-food hamburger chain in the world based on the number of locations. 

On December 31st, the total number of Hamburger restaurants, which includes those which are franchised or owned by franchisees was 15,003. 

It’s present in more than 100 countries as well as US territories. Burger King is nearly 100 percent franchised. Only a small percentage of outlets are run by the corporation (approximately 800) while the majority are licensed (14,200). 

Franchises also contribute a substantial portion of the overall advertising budget of Burger King. Burger King brand.

Their contribution to the advertising fund managed through Burger King ranges from 3.5 to five percent of their gross sales. 

Burger King has created an extremely reliable and effective system of franchises that are based on the best practices for franchising. 

Always, the focus of Burger King is on the rapid and lucrative expansion of the brand via more international expansion as well as more efficient customer service. 

This SWOT analysis of the company will provide you with an understanding of its strengths and weaknesses, as well as how the brand is set to grow in the future.

Burger King’s Strengths

Burger King Swot Analysis

❤️ Worldwide Presence Burger King has 18,838 restaurants spread across nearly 100 countries around the world. It’s the sixth-largest fast food restaurant chain worldwide. It serves more than the 10 million people who visit every day. The presence of the chain in all parts of the world is unquestionably an advantage.

❤️ Successful Strategies companies that use successful management strategies always come up with ways to improve their operations and remain up to date with current trends in the marketplace. After years of stagnation, Burger King appointed 32-year-old Daniel Schwartz as CEO to transform the chain into something exciting. The young and imaginative CEO was rejuvenated and turned the company around in just a few years.

❤️ A Strong Model of Franchising Today, 90 percent of Burger King is franchised with more than 15,000 locations operated by franchisees. To acquire a franchise from Burger King it is necessary to pay the franchise fee of $45,000 as well as a minimum amount of $317,100 as an initial investment. It’s the cheapest franchise.

❤️ A Wide Selection: Burger King offers an array of regional and international items on the menu that satisfy the needs of any traveler from home. From bacon-adorned buns to veggie-based Whoppers, grilled burgers, taro-filled pies, poutine-skinned fries drinks, desserts chicken items, and other items, the restaurant is renowned because of its extensive range of options.

❤️ Innovative Offers: Burger King always reinvents itself and comes up introducing new and innovative options. It launched sandwich recipes made of plant matter known as the Impossible Whopper, which attracted new customers and assisted the company beat its 2 2nd quarter earnings expectations in the year 2019.

❤️ Innovative marketing Marketing that is effective should make the viewer shake to the core, and stay there for the duration. Burger King recently released a disgusting ad that shows a preservative-free hamburger deteriorating over the course of 34 days. The ad’s attention-grabbing nature ensures customers will always recognize the brand as being 100% natural.

❤️ More healthy than competitors: While Burger King isn’t the most healthful food option available but it has more nutritious options than its competitors.

Burger King’s Weaknesses

Burger King Swot Analysis

❤️ Overdependence on the US Market: About 44.0 percent of Burger King’s outlets are located within the US and contributed $9.2 billion to its revenues. The company is exposed to nearly half of Burger King’s revenue to any issues that may arise in market competition in the US marketplace.

❤️ False advertisements: In the current world of health-conscious consumers, misleading advertisements regarding the ingredients used in food products undermine confidence and deter customers from buying. Burger King was recently reprimanded for suggesting that its Whopper was vegan-friendly, yet it was prepared using eggs-based mayonnaise.

❤️ Over-Franchising Although Burger King’s franchises have been well managed, the rapid franchising can be detrimental to the viability of the business model. In the case of Subway, for instance, its dispute with its franchisees exposes the dangers in the future for Burger King.

❤️ Unstable: Any time the management and ownership of a business change ownership, the continuity of the business’s operations are interrupted. Burger King is a prime example. management of Burger King has changed ownership six times, with Restaurant Brands International taking ownership just a few years ago.

❤️ Negative publicity and controversy: From feeding its customers horsemeat to providing vegans and non-vegans Whoppers and more, every controversy and negative publicity can damage the confidence of its customers even more. low value: The majority of customers are looking for value for dollars. However, Burger King offers poor value from its least expensive to the most expensive Burger. This is the reason Burger King does not have a long-term client base and its customers have the option to choose to eat at other restaurants in the event that it is more practical.

Burger King’s Opportunities

Burger King Swot Analysis

❤️ Increase market presence: Being a market presence will ensure that every consumer has access to a store instead of another competitor. Burger King understands the opportunities created by the addition of more outlets. it plans to increase its number by 26,000 to 4000 outlets.

❤️ Expand Options based on Plants: Burger King’s earnings grew by 30 percent after the introduction of the healthier version of its sandwich, known as the Impossible Whopper. The company could capitalize on the growing need for healthier food by introducing more plant-based alternatives to the menu.

❤️ Diversify Portfolio In lieu of focussing exclusively on its restaurant business, Burger King can diversify its portfolio beyond its sector. For example, it could start a grocery store instead of having to rely on other outlets to sell its Whoppers that are made in the plant.

❤️ Concentrate on Emerging Economy: From Asia to Africa and in the Middle East, and Latin America, emerging economies have untapped markets and the possibility of growing.

❤️ Burger King is asking to take orders from McDonald’s: In an effort to revive the restaurant business, Burger King has sent out tweets to its customers to make orders from McDonald’s.

Here’s an official Tweet is taken from Burger King UK:

Burger King’s Threats

Burger King Swot Analysis

❤️ Global Recession Food is important, consumers tend to cut down on eating out during times of financial hardship. Already, a few Burger King franchisees have declared bankruptcy or are in receivership.

❤️ Stiff competition: From McDonald’s, KFC, Subway, Dominos, and many other chains, Burger King is facing tough competition in the United States and internationally. The company is involved in a fierce “Burger Wars,” and has the market’s share of profit as well as the sustainability of its business at stake.

❤️ Rising Health-Consciousness: The number of health-conscious consumers is increasing rapidly yet most of the foods offered by Burger King contain fats, and animal products, and are categorized as unhealthy. If a competitor has healthier alternatives, customers who are health-conscious could be able to mass-migrate away from Burger King in an instant.

❤️ Strict Regulators: Governments across the world are struggling to pay the burden of managing and treating the lifestyle ailments that are caused by unhealthy foods. Authorities are able to enact rules that target fast-food chains such as Burger King to reduce unhealthy food choices.

❤️ The rising cost of farm products: Growing the population, coupled with the rapid growth of urbanization is increasing the demand for farm produce that is fresh and the supply is declining. The lack of beef that is fresh has resulted in higher costs and is threatening Burger King’s profit margins and long-term sustainability.

❤️ Global Pandemic: Every business that asks its customers to leave their homes to eat in public areas is susceptible to the spread of the disease. Certain Burger King franchisees have gone under, and others are struggling to earn enough to cover rent.

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The Limits Of SWOT Analysis For Burger King

While it is true that the SWOT analysis is extensively used to plan strategic strategies, however, it does have some limitations.

  • Certain abilities or aspects of an organization can be both strengths and weak points at the same. This is among the most important limitations in SWOT analyses. For instance, changing environmental regulations can be an opportunity and a threat to the company. However, as well as an opportunity in the sense that it can allow the company to compete on the same level or gain an advantage over its competitors if it can develop its products more quickly than its competitors.
  • SWOT doesn’t provide a way to gain competitive advantages It is not a strategy to gain competitive advantage, therefore it should not be considered a solution in and of itself.
  • The matrix serves as an initial point of reference for an analysis of how the suggested strategies can be put into practice. It also provided an evaluation window, but not an implementation plan based upon its strategic competitiveness. Burger King
  • The SWOT model is a static evaluation and analysis of the current conditions with only a few potential modifications. As the environment, circumstances threats, strategies, and circumstances alter, the dynamic of the competitive landscape will not be apparent in one single matrix.
  • SWOT analysis can cause a company to focus too much on one external or internal element in formulating strategies. There are interrelations among important external and internal elements that SWOT cannot reveal that can be vital in formulating strategies.

A SWOT Analysis That Is Weighted For Burger King

Due to the previously stated weaknesses of the SWOT analysis/ matrix, the corporate management determined to give the weightage to every internal strength and weakness of the business. 

They also consider the likeliness of events happening in the near future, and what the effect can be on the performance of the company.

This technique is known as the Weighted SWOT Analysis. It’s better than basic SWOT analysis since, With weighted SWOT analysis, Burger King managers can focus on the most crucial elements and ignore the less crucial ones. 

It also eliminates the problem of a long list that causes organizations to make a lengthy list but not addressing any of the elements is considered to be crucial.

The Burger King SWOT Analysis Recommendations

Burger King’s current focus is market penetration and significant product development. Based on this SWOT analysis the business needs to modify certain strategies in order to remain competitive. 

Burger King can implement the suggested strategic changes to address the most pressing concerns of its customers:

  1. Widen or diversify product ranges to overcome the limitations of the current product mix
  2. Increase service quality
  3. Enhance products to meet the health-conscious lifestyle trend

References

  • Burger King Corporation (2015). About Us.
  • Burger King Corporation (2015). Diversity.
  • Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). Recent research on team and organizational diversity: SWOT analysis and implications. Journal of Management, 29(6), 801-830.
  • Jacobs, T., Shepherd, J., & Johnson, G. (1998). Strengths, weaknesses, opportunities, and threats (SWOT) analysis. Exploring Techniques of Analysis and Evaluation in Strategic Management. London: Prentice-Hall, 122-133.
  • Pickton, D. W., & Wright, S. (1998). What’s SWOT in strategic analysis?. Strategic change, 7(2), 101-109.
  • Piercy, N., & Giles, W. (1989). Making SWOT analysis work. Marketing Intelligence & Planning, 7(5/6), 5-7.
  • Valentin, E. K. (2001). SWOT analysis from a resource-based view. Journal of Marketing Theory and Practice, 54-69.

FAQ

❤️ What is the SWOT analysis of Burger King?

Burger King Brand Analysis

Burger King Weaknesses

Here are the flaws of this Burger King SWOT Analysis:

1. High calories and fat-rich food is not a good choice for health-conscious individuals.

 2. Intense competition means limited market share growth for Burger King

❤️ What are the strengths of Burger King?

  • Burger King is among the top 10 most recognizable fast-food restaurant brands around the world. 
  • Burger King is owned by an organization with solid financials. 
  • The number of locations continues to increase and its prices remain at a competitive level. 
  • The customers are always satisfied with the food and service.

❤️ How does Burger King attract customers?

A Burger King’s main driving factor is its menu which is simple. When it adds products to the menu they’re sourced from the ingredients that are already used. By using this method it is able to attract new customers, while not alienating existing customers.

❤️ Who are Burger King’s main competitors?

Burger King’s competitors include KFC, McDonald’s, Hardee’s, and Luby’s.

❤️ Is Burger King profitable?

The world’s largest fast-food chain Burger King generated approximately 1.6 billion U.S. dollars in revenue in the fiscal year. It’s a 10 percent reduction over the prior year’s sum in the amount of 1.78 billion U.S. dollars.

❤️ What makes Burger King so successful?

Burger King owes its success to a single factor: simple, as per the latest report from Citi Research. By making new menu items using the ingredients already in use like the Bacon Cheeseburger that is the ultimate, Burger King can entice customers without overwhelming employees and causing delays in service.

Burger King SWOT Analysis Conclusion:

Being a part of a developmentally and fast-food industry that is highly competitive, Burger King is doing fairly well in the race for market share and sales with the other top brands, like the huge McDonald’s. 

Burger King has plenty of opportunities for growth globally, with a particular focus on emerging markets, aided through alliances with local companies. 

However, emerging trends in healthy eating, veganism and sustainable living could erode the sales of the company if Burger King does not respond to the changing times with innovative solutions.

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