Strengths:• Strong market position -BKC is the worlds second-largest FFHR chain as measured by the total number of restaurants and system-wide sales.• Greater franchise mix -As a result of its higher franchise mix, the company is able to grow with minimal capital expenditure and is assured of regular income in the form of fees and royalties.• Robust financial performance -Revenues and Income have consistently grown providing a platform for Global Brand Equity.future growth. Have it your way
17. SWOT Analysis Cont.…
Weaknesses:• Market concentration -Though the company operates in 65 countries, its operations are heavily concentrated in the US and Canada. About 65% of its restaurants are located in the US and Canada -Concentration of operations in one geographic area increases companys exposure to local factors such as adverse economic situation, labor strikes and changes in regulations that can affect its operations.• Scattered Marketing Campaign -Fail to efficiently promote products, because they are too busy trying to promote “The King” character .• Declining market share• Slowed revenue and income growth Have it your way
18. SWOT Analysis Cont.…
Opportunities:• New products development -BK value menu featuring six items at less than $1, breakfast sandwiches, and specialty burgers.• New opportunities in growing economies -India, China, Singapore, and Malaysia• Positive outlook for restaurant industry in the US -The year 2009, would mark the 18th consecutive year of sales growth in the restaurant industry. -Well positioned companies will benefit from growing foodservice sector• Reduce cost of entry for BK franchise• Expand in Asia market• Reduce underperforming outlets Have it your way
19. SWOT Analysis Cont.…
Threats:• Intense competition -The companys competition in the broadest perspective includes restaurants, quick service eating establishments, pizza parlors, coffee shops, street vendors, Expiry of Franchise