Burger King's SWOT Analysis
The SWOT analysis of Burger King by EdrawMax analyzes the fast-food giant by strengths, weaknesses, opportunities & threats.
1. Lead-in
SWOT Analysis analyzes a company based on its strengths, weaknesses, opportunities, and threats. Burger King's SWOT Analysis does the same thing. SWOT Analysis of Burger King will help to identify the ways to make the company run better in the future.
The SWOT Analysis for Burger King is one of the best ways to help the company get over the problems it is still facing. In this SWOT analysis guide, we will create a SWOT analysis diagram using the free templates, symbols, and customization options offered by EdrawMax Online. As a registered EdrawMax user, you get the feasibility of downloading and customizing such SWOT analysis templates in just a couple of steps.
2. About Burger King
2.1 Introduction of Burger King
Burger King is a well-known American company that works as a fast-food chain. Even though it has gone through a lot of ups and downs, Burger King is still a big name when it comes to its brand value. It has changed three companies, but now it seems to be trying to find a stable footing on its own in the market.
2.2 Overview of Burger King
| Name | Burger King Corporation |
| Founded | 1954 |
| Industries served: | Restaurants |
| Geographical areas served: | Worldwide |
| Headquarters: | 5505 Blue Lagoon Drive, Miami-Dade County, Florida, US |
| Current CEO: | Daniel S. Schwartz |
| Revenue (US$): | Daniel S. Schwartz |
| Profit (US$): | US$ 1.02 billion as of 2021 |
| Employees: | 34,248 as of 2021 |
| Main competitors: | KFC, McDonald's, Starbucks, Chipotle, etc. |
2.3 History of Burger King
| 1953 | Predecessor of Burger King was founded |
| 1959 | After its failure restarted the company naming it Burger King |
| 1967 | After its failure restarted the company naming it Burger King |
| 1978 | Burger King hired McDonald's executive |
| 1980 | Donald Smith left |
| 1984 | Norman Brinker left |
| 2000 | Diageo put up the company for sale |
| 2002 | TPG Capital bought Burger King from Diageo |
| 2006 | TPG Capital bought Burger King from Diageo |
| 2010-2018 | TPG Capital bought Burger King from Diageo |
| 2019 | Burger King decided to close up to 250 locations per year. |
| 2021 | Began testing for customer loyalty rewards |
| 2022 | Suspended all its corporate support |
3. SWOT Analysis of Burger King
Strengths
- Worldwide presence: Burger King is a brand famous in many countries. You will see people flocking to Burger King in developing and developed countries. Its worldwide presence helps it to gain more popularity and high revenue.
- Variety of products:It is one of those food joints that provides you with various products. You never have to be confused about what to buy from a scarce array of options. You can have whatever you want and in various sizes as well.
- Healthy options more than competitors: Even though the products that Burger King sells are nowhere near being healthy, what it provides is pretty healthier than most of its competitors. It makes Burger King so much more of an attractive option in the eyes of its customers and probable customers.
- Most affordable franchise: Burger King has established outlets worldwide. Most of its outlets are owned by the franchisee, and people can pay as low as a $45,000 franchise fee and a bare minimum investment of $317,100 if they want to own a franchise.
Weaknesses
- Highly dependent on the US market: Even though you will see Burger King operating in a significant global market, one still cannot overlook that its primary market is highly dependent on the United States. Even with its popularity in many other countries globally, you can say that it solely depends on its revenue from the American market.
- No stable operations: Even if Burger King has been in the industry for quite some time now, it is still unstable. As soon as there is some shift in the higher positions, they stop operating stably and depict various problematic behaviors. It is an unsaid rule that if you want to rule your respective markets, you must provide your customers with stable operations.
- Controversial presence in the market: Now, it is a known fact that every significant business name faces at least some kind of controversy and negative publicity. In the case of Burger King, the accusations run pretty deep. They dealt with scandals like providing customers with horse meat and not providing vegan customers with vegan food. Whether true or false, these controversies make a business lose its good name in the market.
- Ads are misleading: Every business has a carefully crafted marketing strategy. There always is some difference when it comes to advertisements and reality. Burger King has been accused of showing ads that are misleading and has caused some problems. Society is highly health conscious now, and Burger King says that they provide vegan whoppers but providing egg-based mayonnaise whoppers is a big deal for many of its customers. It has led to distrust between the company and its consumers.
Opportunities
- Put more focus on developing countries: Although Burger King is highly dependent on the US market, it still has the opportunity to grow in the markets, which are still developing, and it can increase its gross profit in the revenue it already earns.
- Expand all over: Burger King still has an opportunity to expand its reach over those markets that are still beyond its reach. By expanding its reach more than it already has, Burger King might become one of the most dominating options in the international market.
- Availability of healthier food: Though it provides pretty healthy options, it still has room to improve. Burger King can provide its customers with healthy food options. It will help the firm to attract all health-conscious customers.
- The portfolio should be more diverse: Burger King can expand its business in different industry sectors. For instance, when it comes to their raw materials, they can provide those for themselves and expand their reach to the grocery market instead of buying from local grocery stores. It can be the best way to have side businesses over their core business.
Threats
- Competition is high: No matter how long you have been in the market and how high of a position you hold, it is natural that you will always have competition. Especially in the fast food industry, competitors can be old and new.
- Rules and regulations: With the demand for fast food increasing, governments worldwide are implementing several laws to check and curb minimum health issues caused by bad eating habits.
- Worldwide Recession: The aftermath of the pandemic has massively hit the world. Currently, the worldwide recession that the world is facing is causing problems for every other business, whether small or big, does not matter. Burger King is no exception and is also facing the same problem.
- Farm product prices are increasing: The production cost has increased due to the increase in the costs of the farm products. It will affect the revenue of Burger King. It will also affect the competition when its competitors' products are available at much cheaper rates than Burger King's.
Burger King's SWOT Analysis Diagram
As you saw here, SWOT analysis is an integral part of any organization's progress as it not only depicts the strengths and weaknesses in detail but also introduces the opportunities and threats it faces. In order to retain the information for a long time, students and professionals are advised to work on a Burger King SWOT analysis diagram using the astounding customization options offered by EdrawMax.
4. Free SWOT Analysis Diagram Creator
EdrawMax is one such tool that offers a wide range of diagramming options. Unlike other SWOT analysis creators, EdrawMax comes with free templates and symbols. It also has a rich online community. Some of the major features of this free SWOT analysis diagram software are:
- This free SWOT Analysis creator is free, and even the one-time yearly fees offer many features that most other SWOT analysis software fails to provide.
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- EdrawMax is an all-in-one diagramming tool that offers free templates, symbols, diagramming components, online resources, and more.
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- EdrawMax Online lets you easily export and share your visual plans publicly or privately.
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5. Key Takeaways
The article here primarily talks about the SWOT Analysis for Burger King. Burger King's SWOT Analysis is a way to identify the competition the company faces or will face in its respective industry. SWOT Analysis of Burger King also helps to find the company's position among its competitors.
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Reference
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Investopedia. 2022. SWOT Analysis: How To With Table and Example., [online]. Available at: https://www.investopedia.com/terms/s/swot.asp (Accessed 5 September 2022).
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Parker, B. 2022. Burger King SWOT Analysis., [online] Burger King SWOT Analysis. https://bstrategyhub.com/burger-king-swot-analysis/ (Accessed 5 September 2022).
