Wendy’s SWOT Analysis [Update 2022] ❤️

Wendy’s SWOT Analysis 2022

A SWOT analysis can help you assess Wendy’s potential international growth. SWOT analysis can be used to understand the effects of strategic factors both internal and external on the company. 

The SWOT analysis of Wendy’s shows that the company has global operations, so the considerations are globally based. 

Wendy’s SWOT analysis, which is one of the largest competitors in the global fast-food restaurant market, also sheds light upon the industry, including the competitive landscape and how other companies fare. 

Wendy’s SWOT Analysis

The company addresses the major issues currently facing the business. This SWOT analysis shows that Wendy’s could improve its international expansion.

Wendy’s SWOT analysis shows the company’s ability for steady growth in major markets. The company can benefit from global expansion.

Strengths In The SWOT Analysis Of  Wendy’s

❤️ Marketing: Wendy’s uses social media platforms such as Twitter and Facebook to promote its products and services. Red, Dave’s daughter, is the spokesperson for the company. She has managed the campaign with efficiency.

❤️ Financial Stability: Many businesses and companies were devastated by the pandemic of covid-19 in 2020. But Wendy’s was able to not only survive but also remain profitable in 2020. The company’s annual revenue and net income have increased by 4.91%, and 21.15%, respectively.

❤️ Young Market: Wendy’s target market is millennials and young adults. Morgan Smith Goodwin was the character of Red, the company’s brand symbol. It has many similar characteristics to the millennial generation and attracts them towards it.

❤️ Brand Image: Wendy’s primary product was burgers, and that used to be the company’s brand image. The fast-food chain has managed to shift its focus from junk food to healthier options than many other brands. The company provides better quality, healthier food to its customers.

❤️ Service: Wendy’s has been investing its resources in restaurant services to give the company a fresh look. These services include digital menu boards, flat-screen TVs, WiFi, comfortable seating arrangements at booths and lounge chairs, as well as Wi-Fi. These little touches collectively convey a modern message to customers.

❤️ Menu: Wendy’s has a wide variety of items on its menu, including Bacon Portabella Melt On Brioche, which gives it an edge over other restaurants.

❤️ Global Brands: Wendy’s is a multinational company that operates its business in more than 30 nations. The restaurant chain has a network that includes 6650 locations.

Weaknesses In The SWOT Analysis Of  Wendy’s

❤️ Limited Market Presence: There’s no doubt that Wendy’s is a brand that is globally operating in more than 30 countries. However, around 90 percent of the chain’s network operates in North American countries. It has a market presence when compared with the brands that compete.

❤️ Franchising System: Wendy’s follows the franchising model, which gives franchisees total autonomy over day-to-day activities. Certain franchise owners are concerned about quality while others only care about profits by making money from their brand’s name. This affects the image of the parent company.

❤️ Unhealthy Fast Food: Many younger customers view the fast-food industry as junk food. They place Wendy’s as well as other companies into the same class as chain fast-food businesses which produce and deliver junk food.

❤️ Prices at the top: Wendy’s offers higher prices for its services and products over the competitors. They’re selling the same items that are of similar quality, but with lower costs. Certain customers who are price conscious are shifting to different brands.

Opportunities In The SWOT Analysis Of  Wendy’s

❤️ Acquisition: Wendy’s might want to consider purchasing small restaurants across the world, and redesigning them using the new menu as well as new products. This would allow the company to expand its reach.

❤️ Revised Breakfast: Wendy’s recently updated its breakfast menu. The menu now includes muffins, cinnamon sticks hash browns, breakfast burritos, Kaiser rolls, biscuits, fruit, and sandwiches. Breakfast menus have been updated and cut down the cost of operations and eased the procedure. In general, the efficiency of the business has been boosted.

❤️ Global Expansion: The USA and North America is the major market for Wendy’s. The chain restaurant business is expected to expand its operations into both the Asian addition to European markets. They have a huge potential for growth and Wendy’s entry into these markets will improve the company’s standing.

Threats In The SWOT Analysis Of  Wendy’s

❤️ Food-related health problems related to fast food: One of the major health problems associated with fast food is weight gain, increased cholesterol, blood pressure, and heart-related issues. Wendy’s also serves fast food on its main menu, and its current diet that is healthy and says”no” to fast foods isn’t great for business. While Wendy’s has updated its menu to include healthier foods however it will take some time for the customers to be able to accept and comprehend the change.

❤️ Increasing Costs: The price of food ingredients and other materials has risen significantly as have the transportation costs. The growing operational cost has profoundly impacted the retail cost of food items.

❤️ Competitors: McDonald’s, Starbucks, KFC as well as Burger King are some of the biggest competitors to Wendy’s. They hold a larger market share and their rapid growth hinders Wendy’s to be competitive with their more experienced competitors.

The SWOT Analysis Has Limitations For The Wendy’s Company

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely as a tool for strategic planning However, the analysis has its fair share of drawbacks.

  • Certain aspects or capabilities of an organization could be both strengths and weaknesses at the same time. This is among the most important limitations in SWOT analyses. Changes in environmental regulations could be an opportunity and a threat to the company. However, as well as an opportunity in the sense that it allows the company to compete in a position to compete with its competitors or even gain an advantage over competitors if it can develop its products more quickly than its competitors.
  • SWOT doesn’t provide a way to get a competitive edge and therefore it shouldn’t be considered a solution in and of itself.
  • The matrix serves as an idea to begin an analysis of how the proposed strategies might be implemented. It offered an evaluation window but did not provide any implementation plan that is based on the strategic competitiveness of Wendy’s Company
  • It is a static evaluation that analyzes the current conditions with only a few potential modifications. As the environment, circumstances, as well as threats and strategies, evolve, the dynamics of the competitive landscape cannot be analyzed in a single chart.
  • SWOT analysis could make a firm overvalue one external or internal element in formulating strategies. There are interrelations between the most important external and internal elements that SWOT doesn’t reveal, which can be vital in formulating strategies.

Weighted SWOT Analysis of the Wendy’s Company

Given the above-identified weaknesses of the SWOT analysis/ matrix, the corporate management has decided to assign the weightage of every weakness and strength of the business. 

Companies also evaluate the probability of events that will occur in the near future and the impact they will be on the company’s performance.

This is referred to as weighted SWOT analysis. It’s better than basic SWOT analysis as using weighted SWOT analysis, Wendy’s Company managers can focus on the most crucial aspects and eliminate the less important ones. 

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

Wendy’s SWOT Analysis and Recommendations

Wendy’s ranks among the top fast-food restaurants worldwide. This SWOT analysis shows that Wendy’s has the capabilities to continue delivering satisfactory results. 

The company has yet to take significant steps to expand its global reach, so this performance is not as good. Wendy’s could benefit from a more aggressive strategy for global expansion. 

The company should diversify its business to lower market risk and invest more in product innovation to meet changing consumer preferences. 

The SWOT analysis shows that Wendy needs to make changes in its strategies in order to remain competitive in the long term.

References

  • Hill, T., & Westbrook, R. (1997). SWOT analysis: it’s time for a product recall. Long-range planning, 30(1), 46-52.
  • 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.
  • Leigh, D., & Pershing, A. J. (2006). SWOT analysis. The Handbook of Human Performance Technology, 1089-1108.
  • 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.
  • The Wendy’s Company, Form 10-K, 2013-2014.
  • Valentin, E. K. (2001). SWOT analysis from a resource-based view. Journal of Marketing Theory and Practice, 54-69.
  • Wendy’s International, LLC, Form 424B3, 2001.

Conclusion

Wendy’s has a large presence across North America which is the largest source of revenue for the fast-food brand. 

The company has focused its efforts on the quality of food and the variety of menus. The company is working to grow internationally. However, it is a little presence outside of North America right now. 

Although the company’s revenues have decreased each year over the past four years, its operating margins are extremely impressive. 

The brand’s future opportunities are located in the Asian markets as well as in the field of technology. 

There is a lot of competition in the 21 century. century, and by making investments in technological advancements and constantly rethinking food options, the company can remain ahead of the pack.

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