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Swot Analysis Of Brinker International, Inc. Swot Analysis

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Brinker International, Inc. SWOT Analysis
SWOT refers to the Strengths and Weaknesses of an internal factor of a firm and the Opportunities and Threats of an external environment facing the firm. SWOT analysis is a technique widely used by managers to provide strategic overview of the company. The best approach and most effective technique to SWOT is maximizing the company strengths and opportunities and minimizing weaknesses and threats. When this assumption is applied accurately, the outcome of the company can be a very powerful and successful.
1.Strengths
1.1 One of Brinker’s strengths has to do with using effective strategies in advertising and marketing and targeting its customer base.
Brinker uses effective advertising and …show more content…

The company has also been focusing on expanding its presence in international markets. In 2016, Brinker 's international franchisees and joint venture partners opened 36 Chili 's restaurants. During the reporting period, Brinker entered into new development agreements with new and existing franchisees for development in Bangladesh, Bolivia, Chile, India, Indonesia, Mexico, Panama, Saudi Arabia, Sri Lanka and the UAE.
Presence in diverse markets helps Brinker offset risk of depending upon any particular geographic market. It also protects the company from risks associated with adverse economic and political developments in a geographic market.
1.3 Franchise development driving top-line growth
Brinker has been transforming itself to franchise more of its company-owned units as well as to move toward international expansion away from the saturated domestic market. As of June 29, 2016, Brinker had 25% of its domestic and 96% of its international restaurants were operated through franchisees. During 2016, the company had 659 restaurants through franchisees. Brinker has sold company-owned restaurants to its franchisees and may continue to do so.
2. Weakness
2.1 Increasing indebtedness could limit the company 's financial flexibility
Brinker has recorded a significant increase in its debt levels. In 2015 the company’s long-term debt was $950,156, as of 2016 their long- term debt increased to $1,113,900, an increase of 14.7%. As a result of increased

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