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Strength
s
SWOT
Oppurtuni
ty
Analysis
Threa
ts
Weakne
ss
Acronym for
Strengths,
Weaknesses,
Opportunities, and
Threats.
Technique is credited to
Albert Humphrey who
led a research project
at Stanford University
in the 1960s and
1970s.
Planning tool used to
understand Strengths,
Weaknesses,
Opportunities,
&
Threats involved in a
project / business.
Technique that enables
a group / individual to
move from everyday
problems / traditional
strategies to a fresh
perspective.
What is SWOT?
SWOT is a business or
strategic planning technique
used to summarise the key
components
of
your
strategic environments.
Introduction
SWOT
analysis
(strengths,
weaknesses,
opportunities,
and
threats analysis) is a framework for
identifying and analyzing the internal
and external factors that can have an
impact on the viability of a project,
product, place or person.
SWOT Analysis
SWOT is a summary of your
Strengths
Weaknesses
Opportunities
Threats
Interna
l
Externa
l
project.
business
advantage
or a
over
SWOT
ANALYSIS
- THREATAnalysis?
What
is SWOT
THREATS
External elements in the environment
that could cause trouble for the
business - External factors, beyond an
organizations control, which could
place the organizations mission or
operation at risk.
Arise when conditions in external
environment jeopardize the reliability
and profitability of the organizations
business.
Examples - Entry of foreign competitors,
Changing customer needs/tastes, Rival
firms, adopt new strategies, Increased
government
regulation,
Economic
downturn.
INTERNAL
STRENGTHS
WEAKNESSES
Community oriented
Global operations all over the world
Cultural diversity in the foods
Excellent location
Assembly line operations.
OPPORTUNITIES
THREATS
EXTERNAL
SWOT analysis of
Dominos
STRENGTHS
Brand Recall:High brand recall due to its regular advertising with taglines
such as 30 minutes nahi to free. Such aggressive marketing has created
awareness & a promise for the brand in the market.
Fantastic channel network:With its 9000 franchise & company owned
outlets Dominos has extensive network spread over more than 60 countries.
Quick service & deep menu:Quicker than expected service delights the
consumers and helps the company toitself from others. In India Dominos is
trying to attract the middle class and lower middle class people who are
interested to spend their money on pizza but in low price. Those people are
eager to go for an outing in any festival and want cheap and best family
restaurant. Dominos would be most preferable.
Low cost alternative:They do not need high class Ambiance or amusement
in the shop so the establishment cost is low for the dealers and the price of
pizza is very reasonable for the customers.
Healthier alternatives:To combat health awareness among consumers,
Dominos is trying to change their dough by having healthier fats, which is
done by incorporating more whole wheat into their crusts. The pizza toppings
are also becoming healthier, and some pizzerias are introducing salads into
their menus.
2008 -supply
2012
Efficient supply chain:Due Copyright
to its efficient
chain Dominos has made it
managementstudyguide.com. All
possible for quicker service so that
customers dont have to wait for long. The
rights reserved.
WEAKNESSES
Operations:Largenumberoffranchisedoutletsresultsindifficultyin
handlingoperations.Qualitycontroltoobecomeschallenging.Duetothis,
someoftheDominosoutletsgotclosedaffectingtheimageofthebrand.
Decreasing sales in mature markets:Duetoriseinhealthconscious
populationthereisdecreaseinrevenueaffectingthebusinessasawhole.
Low staff retention:Highattritionduetotheabsenceofpropertraining&
developmentisamajorchallengeforDominos.Plusthemanpower
employedisalsounskilledsotheyquicklychangejobswhentheycannot
adjusttothehecticenvironment.
Lesser number of eateries:Dominoshasmoredeliveryoutletstheneating
jointswhichisaproblemespeciallyinplaceslikemallsandotherlocations
whereclearlycustomerswantasittingplace
Opportunities
Market Expansion:Expanding to the developing markets will be
beneficial as far as Pizza industry is concerned, as developed
markets are maturing. Targeting the developing economies
should be the future strategy of the company.
Penetration:Strengthening its outlet network by further
penetrating the current market will help Dominos to increase its
revenues.
Health conscious eatables:Introducing health conscious menu
with new flavor additives which is low in fat will result in
increasing it revenues in future.
Restaurants:By introducing exclusive Dominos restaurants in
cream areas will help the brand with more brand recognition and
will also help in getting the customers who like to eat outside in
plush restaurants.
Copyright 2008 - 2012
managementstudyguide.com. All
rights reserved.
THREAT
Global Presence:KFCistheworlds2ndlargestrestaurantchainwithmorethan18,000KFC
outletsin120countriesandterritoriesaroundtheworld.ItismarketleaderinNon-vegfood
jointscategoriesinmajorityofcountriesitisin.
Strong parent company:ItisthesubsidiaryofYum!Brands,arestaurantcompanythatalso
ownsthePizzaHutandTacoBell.Yum!Brands,thefortune500company,isoneofthe
worldslargestfastfoodrestaurantcompaniesintermsofsystemunitsmorethan41,000
restaurantsaroundtheworldinover125countries&ithelpindividualbrandsinoptimizing
itsresourceusage.
Veg & Non veg offerings:AlthoughKFCisknownforitsfingerlickingChickensmenubut
recentlytheyventuredoutinVegetariancategorywhichishelpingtheminincreasingtheir
business&attractingbothveg&non-vegpreferredcustomers.
Secret Recipe:SandersOriginalRecipeof11herbsandspicesisoneofthemostfamous
tradesecretsinthecateringindustry.Acopyoftherecipe,signedbySanders,isheldinsidea
safeinsideavaultinKFCsLouisvilleheadquarters,alongwithelevenvialscontainingthe
herbsandspices.
.
Copyright 2008 - 2012
managementstudyguide.com. All
rights reserved.
Market expansion:Emergingeconomiesandtheirchanginglifestyleresultinginto
moreofoutingswithfamily/friends,corporatepartieswillresultinthehighgrowthof
theindustry.Furthermore,thepresenceandpopularityofMcDonaldsisanytimemore
dauntingforKFC.
Specializing into vegetarian Menu:AlthoughKFCrecentlyenteredinvegetarianfast
foodcategorybuttheyhavelimitedmenuitemsascomparedtootherchainslike
subway,Pizza-hut,MacDonalds,whoarealreadyanestablishedplayerinthe
segment.SospecializingintoVeg.itemsliketheyhaveinNon-Vegwillhelpthe
companyinitsoverallglobalgrowth.
Rise in health conscious population:Designingitsmenuforthehealthconscious
populationwillbethedrivingforceforthewholeindustryinthefuturebecausedueto
changinglifestylepeoplearegettinglesstimeforthemselvesduetowhichhealth
issuesareraising.
Penetration:Strengtheningitsoutletnetworkbyfurtherpenetratingthecurrent
marketwillhelpKFCinincreasingitsrevenues&becomeno.1playerinfastfood
chainmarketgiventhatnowtheyhavepresenceinbothVeg.&Non-Veg.menuinthe
selectedmarket
Copyright 2008 - 2012
managementstudyguide.com. All
rights reserved.
Competition:KFCisnotaleaderinthefastfoodchainindustrysoithas
tocompetewithallotherwellestablishedfastfoodcompanieswhoallare
flourishinginthemarket.
Changing Consumer Eating habits:Withgovernment&NGOshealth
awarenesscampaignspeoplearebecomingmoreawareofwhatto
consume&whattonotwhichisaffectingthebusinessoffastfood
Industryasawhole.
Raw Material prices:Riseintherawmaterialpricesmayaffectthe
industry,ofwhichKFCbusinessisnotanexception.
Closure of current Franchisees:Riseinchannelconflictresultinginto
closingofthefranchiseesisaffectingitsbrandimage&resultinginto
negativewordofmouth
Strengths AlltheintegratedfeaturesofWeb2.0inoneroofisthemost
strengtheningfactorforFacebook.ThehugefanbaseforFacebookandthe
migratingusersofothersocialnetworkingsiteslikeorkutetchasproved
thatFacebookhasmorenutrientsneededforYOUTH.
TheLIKEbuttonisonefeaturewhichmakespeopleLOVEFacebookand
isprobablythereasonwhyuserscommentanddebateoverstatus
messages,photos,videosandwhatnot!ItsactiveintegrationofFacebook
appwithalmostallwebsitesandmobileapplicationsmakesitstrongerand
feelstheusertohavemorebondingtoFacebookthanothersites.
WiththedevelopersoptionsandFacebookpages,itbecomesaperfect
marketingplatformforbothsmallaswellaslargebusinesses.
Threats Asalreadysaidincreasingcybercrimeand
impersonationhasincreasedbecauseofusersnegligencein
managingtheircontents.
Anythinginmarketissubjectedtochangeanduserswill
naturallyloseinterestandsomeothertechnologyorsocialsite
maytakeoverFacebook.
SoFacebookhastooverlookitselfinnearfutureasexplained
byTheodoreLevitinMarketingMyopia