Essay Sample on SWOT Analysis of Chick-Fil-A

Introduction

Chick-fil-A is a fast food chain located in the USA and has its headquarters in Georgia. It specializes in poultry dishes. Chick-fil-A is a privately held, restricted restaurant built up in 1946 by Truett Cathy under the name Dwarf Grill. Chick-fil-A presently has in excess of 1,900 outlets found in the United States, for the most part in the southeast. They are broadly known for making the first chicken sandwich since 1946 and now serve an assortment of items. It serves breakfast, lunch, and dinner and focuses on only chicken as its ingredient. Chick-fil-A operates restaurants under different ways including shopping center or in-line, stand-alone, drive-through just, Dwarf House and Truett's Grill eateries close by working authorized, non-conventional outlets as well as satellite lunch counters. The restaurant offers a wide selection of servings of mixed greens, wraps, sandwiches, burgers, side dishes, sweets, beverages, and breakfast things. It likewise offers an assortment of sauces and dressings. It possesses a few brands which incorporate Chick-fil-A, Chick-n-Minis, Chick-n-Strips, Grilled Chicken Cool Wrap, Waffle Potato Fries, Ice cream, Dr. Pepper, Dasani, and Simply Orange. The restaurant provides food administrations to different private and public occasions by offering packaged meals. Nevertheless, in the current market, different restaurants including Chick-fil-A might experience ups and downs. The paper provides a SWOT analysis of Chick-fil-A.

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SWOT Analysis

Strengths

• Reputable brand
• Strong market share
• Strong advertisement "Eat Mor Chikin"
• Sponsors charity programs
• Impeccable customer service
• Focuses more on customer satisfaction
• Has a good ambiance
• Strong corporate culture

Weaknesses

• Closed on Sundays
• Offers only chicken, which limits customer options
• Poor geographic coverage as it is only present in the USA
• Low innovation because it has not entered the international markets
• High prices of their food options
• Low nutritional content (chicken)
• Subject to changes in regulation
• Loss of revenue because of reduced working hours
• Lack of uniform presence in America
• Does not provide in-home options

Opportunities

• Diversification
• Enter in international markets
• Increase food variety
• Offer health food items because people are becoming more health conscious
• Market penetration
• Expanded business hours
• Increase brand awareness
• More energy usage (green)
• Provide in-home options

Threats

• Strong competition from KFC and Popeye's
• Similar and non-similar fast food restaurants
• Restaurants that provide in-home options
• Solely green companies
• Dependency on one product can threaten supply chain
• Diseases on chicken can cause loss in revenue
• Vegan diets trending can cause the loss of revenue
• Lack of diversity can affect the supply chain
• Changing political climate can affect their business
• Weekend policy can result in loss of clientele
• Chicken can be susceptible to famine
• Reputational loss due to the same-sex marriage controversy

Discussion

Strengths: Chick-fil-A is a reputable brand and has a high market share. Their charity programs, as well, have shown to improve their revenue. Also, their constant advertising increases awareness of their products and boosts their sales. Furthermore, its strong corporate culture is beneficial to them. According to Olivia (2019), Chick-fil-A goes with the notion of creating a positive influence on everyone who comes into contact with them. Another strength they have is that they sponsor charity programs. As Olivia added, Chick-fil-A gave $6,000 (PS4,500) to the Paul Anderson Youth Home, which teaches boys that same-sex marriage is unacceptable by Christ.

Weaknesses: Their poor geographic location can hurt their sales. Their competitors have diversified and set up locations in various parts across America and the world. This lack of diversification would make them lose a chance of networking with their customers. Also, their closing on Sundays and holidays hurt their business. Denise (2019) indicates that the restaurants are always closed for business on Sundays and holidays like Thanksgiving and Christmas. The closing hurt their sales because those are the days when most people are free to take their entire family for meals.

Opportunities: Chick-fil-A has an opportunity to expand its business across the U.S. and expand its menu as well. However, recently, Chick-fil-A used Central Florida to test out a new low-calorie menu item called the Kale Crunch side, which will feature curly kale, green cabbage with an apple dijon dressing topped with salted almonds (Orlando Sentinel, 2019). It is also testing their menu in eastern Iowa and the Tyler-Longview vicinity of Texas (Orlando Sentinel, 2019). Hopefully, if the new menu that they tested in Central Florida works, then they will boost their sales. Also, they have an opportunity to be more "green" like their competitors. Increasing their brand awareness to other location would be an opportunity for them to increase their sales. Also, in-house options would boost their sales and increase revenue.

Threats: the restaurant can lose its reputation and thus revenue because of their open opposition to same-sex marriage. Due to their religious beliefs, the restaurant's CEO has come out strong to refute same-sex marriages. Their CEO Cathy Dan has always been vocal on his opposition even before the legalization of same-sex marriage in the U.S (University Wire, 2019). Their view on the LGBT matter can hurt consumer spending. For example, Northern Kentucky University did not want its administration to pay money for their menu to an anti-LGBT organization (University Wire, 2019). Besides, their stance on LGBT made them to be banned from opening a kiosk at San Antonio International Airport in Texas (Olivia, 2019). Obviously, this is a threat to its business as they are unable to increase sales in other locations. Furthermore, it is evident that Chick-fil-A faces stiff competition from other fast food restaurants.

Conclusion

This brief provides an analysis of the strengths, weaknesses, opportunities, and threats that Chick-fil-A. The research has provided a better understanding of the way the restaurant performs its operations. After the extensive exploration, it has been determined that Chic-fil-A is limited in various ways. This limitation is what gives them their weakness. Even though the restaurant has a lot of strengths, it should make use of the opportunities to have a better standing in the markets. Diversification is important and if Chick-fil-A grabs this opportunity, they will increase their revenues. Chick-fil-A has to overcome its weaknesses and threats to have a better competitive advantage. Since it is an independent contractor, the restaurant has the ability to outperform its competitors by setting up more outlets across the globe. For that reason, an expansion strategy is needed by the restaurant. Overall, Chick-fil-A has to revise its corporate strategic plans to enable them to succeed in the competitive hotel industry market.

References

Denise, A. (2019). Chick-fil-A Submits Plans To Open Restaurant In W-B Twp. The Citizen's Voice. Retrieved from http://ezaccess.libraries.psu.edu/login?url=https://search-proquest-com.ezaccess.libraries.psu.edu/docview/2171750975?accountid=13158

Olivia, P. (2019). Chick-fil-A banned from opening at San Antonio airport due to 'anti-LGBT behavior.' The Independent. Retrieved from http://ezaccess.libraries.psu.edu/login?url=https://search-proquest-com.ezaccess.libraries.psu.edu/docview/2196317168?accountid=13158

Orlando Sentinel. (2019). Chick-fil-A to test new item in Central Florida. Tribune Interactive. Retrieved from http://ezaccess.libraries.psu.edu/login?url=https://search-proquest-com.ezaccess.libraries.psu.edu/docview/2196369901?accountid=13158

University Wire. (2019). What you missed at SGA Mar. 4. Carlsbad. Retrieved from http://ezaccess.libraries.psu.edu/login?url=https://search-proquest-com.ezaccess.libraries.psu.edu/docview/2188253228?accountid=13158