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    Sonic Power Point Slides

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    This document analyzes Sonic's strengths, weaknesses, opportunities, and threats (SWOT). It identifies differentiation, strong management, and good IT as strengths, and liquidity and business model limitations as weaknesses. Opportunities include expanding menus and partnering in new markets, while threats include low barriers to entry for competitors. The current strategy focuses on market expansion through increased locations, advertising, and unified operations, as well as differentiation through specialty menus.

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    Sonic Power Point Slides

    Uploaded by

    api-3737802
    915 views13 pages
    This document analyzes Sonic's strengths, weaknesses, opportunities, and threats (SWOT). It identifies differentiation, strong management, and good IT as strengths, and liquidity and business model limitations as weaknesses. Opportunities include expanding menus and partnering in new markets, while threats include low barriers to entry for competitors. The current strategy focuses on market expansion through increased locations, advertising, and unified operations, as well as differentiation through specialty menus.

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    This document analyzes Sonic's strengths, weaknesses, opportunities, and threats (SWOT). It identifies differentiation, strong management, and good IT as strengths, and liquidity and business model limitations as weaknesses. Opportunities include expanding menus and partnering in new markets, while threats include low barriers to entry for competitors. The current strategy focuses on market expansion through increased locations, advertising, and unified operations, as well as differentiation through specialty menus.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    915 views13 pages

    Sonic Power Point Slides

    Uploaded by

    api-3737802
    This document analyzes Sonic's strengths, weaknesses, opportunities, and threats (SWOT). It identifies differentiation, strong management, and good IT as strengths, and liquidity and business model limitations as weaknesses. Opportunities include expanding menus and partnering in new markets, while threats include low barriers to entry for competitors. The current strategy focuses on market expansion through increased locations, advertising, and unified operations, as well as differentiation through specialty menus.

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    SWOT

     Strengths  Weaknesses
     Differentiation  Liquidity
     Strong Management  Business Model
     Human Resource (Limitation of current
    Policy model to open only in
     Fun Culture warm climate areas)
     Excellent Information
    Technology
     Franchise Satisfaction
    SWOT
     Opportunities  Threats
     Broaden Menu  Low entry barriers
     Partner and expand to  Aging population
    non-core markets by  Competitors (All food
    creating Sonics providers, mom and
    express non-drive in pop restaurants,
    for cold weather areas. McDonalds, Wendys)
     Continue to build in  Lower startup costs for
    developing markets competitors entering
     Attract younger the market
    generations
    TOWS
     SO  ST
     Customer satisfaction  Utilizeexisting
    and loyalty supports franchises to
    expansion experiment with
    healthier products
     WO
     Change business
    model by adding a
    sonic express
    CURRENT STRATEGY

    Market expansion

    Differentiation

    Development strategy
    Market expansion: a multilayered growth
    strategy design to diversify potential and strengthen
    profitability

     Increased number of restaurants

     Higher media expenditures

     Unification of chain operations


    Differentiation:
    The specialty menu allowed the
    chain to:
    -differentiate itself from other
    fast-food outlets
    -avoid price wars with its major
    competitors

    Points of quality (aluminum foil,


    Styrofoam cups)

    The differentiated concept


    consists of personalized, fast,
    and convenient carhop service
    as well as unique menu items
    Development strategy

    Relies on:

     Franchise expansion
     Same-store sales increases

    (low risk, high return)


    WHEN WAS THE STRATEGY LAST
    CHANGED?

    In 1995 Sonic introduced “Sonic 2000” an


    aggressive multi-layered strategy to further unify
    the company in terms of a consistent menu,
    brand identity, product, packaging, and service.”
    CORPORATE CULTURE

     Create a positive environment for


    employees
     The promise of a positive work
    culture and comprehensive benefits
     The annual Dr Pepper Sonic Games
    created to motivate employees,
    enhance performance, develop
    customer service skills, and promote
    employee retention
    Is the company involved in a
    planned change program?

     Install new IT system to centralize


    information for better reporting and
    communication
     Change store layouts/facade
    IS THE MIS EFFECTIVE?

     The company’s management information


    system and use of information technology
    are effective.
    Sonic attributes its successful
    operations to five essential
    components:
     A multilayered growth strategy
     A highly differentiated concept
     An accelerated expansion program
     Solid financial performance
     Corporate Culture - Training

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