Company Buffalo Wild Wings

SWOTAnalysis

Strengths

Opportunities

Internal

External

  • The international market presents a fantastic opportunity for expansion into new frontiers.

  • The western side of the country has the potential for increasing market share and building the brand.

  • BWW could increase its sales by establishing an efficient delivery service for chicken wings.

  • Conducting a national marketing campaign on social media can enhance the brand image of the organization.

  • The restaurant could establish a special menu focused on children so as to attract more families.

  • Increasing the variety of sauces and seasonings will appeal to more consumers and hence bolster sales.

  • The increase in income can benefit the company in that members of the public will have more resources to spend on chicken wings and beer.

  • Buffalo Wild Wings (BWW) has experienced and competent managers that have ensured stability and consistency.

  • The organization has an efficient business growth model that allows for the transfer of risk during expansion into new markets.

  • The company has a flexible service model geared towards the particular needs of its customers.

  • BWW offers 16 different sauces and seasonings designed to appeal to a broad variety of chicken wing lovers (David &amp David, 2015).

  • The restaurant has convenient hours of operation that cater to the schedule of major sporting events.

  • Each store has around 60 TV screens that accommodate a high number of sports enthusiasts (David &amp David, 2015).

  • BWW stocks up to 30 different beers which consider the varied tastes and preferences of its clients (David &amp David, 2015).

  • The company has a substantial brand presence in the U.S. with over 1,000 locations (Buffalo Wild Wings, 2016).

  • Gift cards and promotions are used as value-added services to clients.

  • Special menus and live sports enhance customer experience.

  • BWW has a skilled workforce that ensures fast service and strict adherence to health guidelines.

  • The enterprise uses the NTN Buzztime Trivia system to provide entertainment for its clients.

  • The regularity of sports events guarantees that the company would have a constant number of clients.

  • Reliable suppliers of chicken wings and beers ensure that the restaurants remain operational throughout the country.

Weaknesses

Threats

Internal

External

  • BWW lacks a delivery system used to service the needs of customers away from the restaurant.

  • The increased number of franchises undermines the brand’s profitability.

  • The company has a Windows-based point of sale management system that is insufficient to oversee its growth.

  • The constant increase of stores in the country could lead to market saturation and hence a reduction in sales.

  • The focus on sports and beer restricts the company’s appeal to customers that hate alcohol and sports.

  • The high amounts of fat and calories of chicken wings could discourage health-sensitive clients.

  • The company has the majority of its stores in the Midwest region of the country. This makes it highly susceptible to regional recession occurring in Ohio and its environs

  • The majority of non-alcoholic sales comprise of chicken wings. Therefore, the business could suffer if supply is interrupted.

  • BWW faces intense competition from various providers in the service industry.

  • Chicken wings have volatile prices determined by market forces such as consumer preferences.

  • The declining performance of the economy has a detrimental effect on the company’s sales volume.

  • In many instances, restaurants are affected by canceled games, holdouts, and sports strikes which reduce the number of customers.

  • The lack of product differentiation within the industry reduces the unique appeal of the company’s chicken wings.

  • Lifestyle changes threaten to derail the market for unhealthy foods with high calories.

  • The gradual rise in minimum wage poses a risk on profitability as the restaurant is obligated to remunerate over 22,500 workers (David &amp David, 2015).

How the above information will be used:

BWW could use the information from the SWOT analysis in various ways. For example, the company can build on its strengths and hence attain competitive advantage (Hm, 2013). In this regard, BWW must improve its business growth model by reducing the risks involved in expansion. Also, the entity needs to consider enhancing the variety of sauces and beers. Furthermore, BWW could use the highlighted opportunities to raise its market share and profitability. In fact, the restaurant chain has plenty of opportunities for expansion into European and Asian markets. The proliferation of the Internet presents new avenues for conducting marketing campaigns. Advertising using social media helps to reach a wider network of customers.

On the other hand, the organization needs to limit its weaknesses and hence reduce the negative impact on sales and profitability. Therefore, BWW can use the information on threats and weaknesses as a guide on potential areas for improvement. Mitigating the risks helps the company to compete against its rivals (Hm, 2013). For example, the restaurant has to offer healthy food choices to clients that detest high calories and fat content. Moreover, creating special offers and discounts would help the company to counter stiff competition by differentiating its products. While planning for future unforeseeable circumstances, BWW may decide to deflect its focus away from sports into other profitable ventures. Besides, the enterprise can discern the need to restructure its franchising agreements. In particular, BWW can ensure that it receives a larger share of the profits realized from local and international franchises (Hoy &amp Stanworth, 2014). In addition, the company can designate land to conduct chicken farming. Pursuing such an idea reduces the dependence on external suppliers. Consequently, costs of chicken wings can be regulated while eliminating the risk of supply shortages. Indeed, BWW can utilize the SWOT analysis to identify areas for improvement.

References

Buffalo Wild Wings. (2016). Retrievedfrom http://www.buffalowildwings.com/en/about/

David, F. R., &amp David, F. R.(2015). Strategic managementconcepts and cases: A competitive advantage approach(15th ed.).Boston, Mass.: Pearson Education.

Hoy, F. &amp Stanworth, J. (2014).Franchising: Aninternational perspective.Hoboken, NJ: Taylor and Francis.

Hm, A. B. (2013). TheSWOT Analysis. Munich,Germany: Grin Verlag.

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