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 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

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
  • 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

 

 

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