SWOT Analysis of Steers
Strengths
- Steers has an established brand image in the South African fast food industry
- Steers has known product differentiation with their slogan
- "Flame grilled: It just tastes better."
- Steers caters for the low-income market
- Through items on their menu such as the "Rave" burger
- High market penetration
- Steers is the second largest fast food restaurant in South Africa, by number of stores
- Steers (509) is second to KFC (771 stores)
- Steers is the second largest fast food restaurant in South Africa, by number of stores
- Steers has a high product differentiation through taste
- Steers has a wide product mix
- Chicken to salads to burgers to milkshakes
- This is very competitive in their current market
- Chicken to salads to burgers to milkshakes
Weaknesses
- Steers' unique selling points are easily imitable
- It is easy for a new entrant or an existing business to change their cooking methods to flame grilled
- Steers' menu is not ideally catered to the South African taste
- Their menu doesn't include items such as the "Boerie burger" which McDonald's offers
- Lack delivery and drive-thru options at most stores across South Africa
- Whilst most of their competitor's offer drive-thru and delivery services at a majority of their stores, Steers is yet to implement such strategies in a meaningful way.
- Steers' menu is not catered to deal with the evolving healthy lifestyle of South African people
Opportunities
- Steers has the opportunity to implement drive-thru and delivery services to their stores
- This will make steers more competitive to the current market and with their competitors
- Steers has the opportunity to expand their menu to provide more products that cater to the South African taste
- They can create new products in specific geographical regions
- Areas have different tastes
- Eg. In Pretoria, a boerie flavour would be more appropriate
- Areas have different tastes
- They can create new products in specific geographical regions
- Steers has the opportunity to offer healthier items on their menu
Threats
- The level of competitive rivalry is very high in the fast food industry due to a high saturation of brands
- This faces Steers with the threat of losing market share and customers due to the aggressive nature of marketing and rivalry in the market
- The increasing health concerns in the South African community
- This will drive customers away from Steers, considering that they have little healthy options on their menu
- Imitation of their flavours and cooking methods