CHAPTER 4: SWOT ANALYSIS

STRENGTH WEAKNESS

1. A&W Malaysian has entered the 1. A&W had to close down few outlets
Malaysian Book of Records as the in Malaysia that did not make any
first franchise restaurant in sufficient profits.
Malaysia. 2. A&W does not advertise
2. The first drive-in restaurant was extensively.
opened in Petaling Jaya in 1965. 3. The price is slightly expensive
3. It serves as “American typical fast compared to other fast food
food” with variety menu of burgers restaurants.
and curly fries as well as hot dogs 4. Low quality service and food.
and its signature drink, A&W root
beer served in frosty mugs.
OPPORTUNITY THREATS

1. Open up new outlets at strategic 1. Other fast food restaurants are

locations with parking and drive- increasingly rapidly.
thru services. 2. Increasing health consciousness.
2. A&W can come up with new set
meals with collectible gifts that
differ for every month.
3. A&W can do collaboration with
any big events in terms of
sponsorship.
4. A&W can take advantage of any
festivals for promotion.
The SWOT Analysis give insight about the key factors like the strength, weakness,
opportunity and threat of A&W Malaysia.

A&W is the first fast food restaurant in the United States originally back in 1919. In 1963,
the franchise was first bought by Mr and Mrs Lie Boff from the United States making it
the first franchise restaurant in Malaysia and also was acknowledged in The Malaysia
Book of Records. The first outlet was opened in Jalan Tuanku Abdul Rahman and the first
drive-in restaurant later was opened in Petaling Jaya in 1965. A&W brand is different
from its competitors because it serves the “American typical fast food” with variety menu
of burgers, curly fries as well as hot dogs and its signature drink which is the Root Beer.
The Root Beer served in A&W is different from any usual Root Beer drink because it is
served in the frosty mugs, where the mugs would be kept in the freezer and it will be filled
with A&W Root Beer before it is served to the customers. When people think of A&W,
they will think of its signature orange colour along with its famous mascot, The Great Root
Bear.

As for weakness, A&W Malaysia is seen to suffer from few problems especially it has to
close down few outlets due to those outlets are failing to make any money. Besides that,
A&W does not take fully advantage towards promoting its products to customers and this
will cause the customers could not find the latest promotion. The strong and constant
advertising from its competitors are causing customers to almost forget about the fact
that A&W is almost not existing and this will make the restaurant to lose its popularity in
the market. The price is slightly higher compared to its competitors. This will be very
troublesome especially for students to buy any of A&W food. Another weakness is the
restaurant serves low quality of food and service, where it takes longer time for the food
to be served to its customers.

A&W needs to open up new outlets at strategic locations example in petrol stations or
convenience stores that are equipped with enough parking spaces. For customers’
convenience, A&W also can set up drive-thru service to those who does not want to dine
in the restaurant. There are many festivals in Malaysia and this could be an advantage for
A&W to do few promotions to attract more customers to come to the restaurant. This
should be done by constantly advertising its products to customers using the mass media
channels such as newspapers, magazines, radio and television. A&W also can fully use the
social media like Facebook, Twitter and Instagram to engage more with its customers
while at the same time promoting its products. This will allow the customers to stay
updated always.

A&W can come up with new seat meals with collectible gifts that differ for each month.
This will eventually encourage the customers to keep coming back to the restaurant.
Besides that, A&W can do collaboration with any events such as “Marathon Day” in terms
of sponsorship to increase its public image in the market.

Other fast food restaurants are increasing rapidly in the market. Fast food restaurants
such as McDonalds, KFC, Marrybrown and Burger King are seen as the nearest
competitors for A&W. Today, people are starting to watch over what they eat and
customers are living a healthy life. Studies have shown that having too many fast food will
increase a person’s risk of health in terms of weight gain and obesity. This is also a threat
for A&W because the restaurant is known for its fast food such burgers, fries, hot dogs
and such.