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SWOT Analysis

 

“The SWOT analysis is an acronym of terms Strengths, Weaknesses, Opportunities and Threats” (C. Seth, 2015, p. 5). “SWOT analysis is an important tool that assists businesses in the evaluation and discovery phase of strategic planning” (pestanalysis.com, para 1). The SWOT analysis is one of the crucial decision-making tools, which supports the development of strategic plans. This analysis includes four main parts with particular features. Primarily, strengths and weaknesses with internal factors such as human resources, physical resources, core competences. The following are opportunities and threats with external factors – macro:  technological, economical, cultural, demographics and etc.

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This part of report is a significant approach for industry competitors, who are hunting for an access to information about Hard Rock Cafe company and its profile.

 

 

STRENGHTS

 

·      Global presence – “Hard Rock Cafe is an international retail chain with eleven casinos, twenty-two hotels and one hundred and fifty-seven cafes in its organisation” (www.marketing91.com);

·      Brand awareness’s is making the consumer acquainted about Hard Rock Cafe;

·      Providing amusing customer experience through elements such as “All-Access System through member cards” and “Priority Seating”, “Table Reservations”;

·      Variety of events that keep happening within the premises – live music evenings

·      Extensive range of fresh food offerings from starters to desserts;

·      The cafe provides gifts; which customers have a possibility to purchase in souvenir shop;

·      Hard Rock Cafe has another new product – Hard Rock Live are music venues which have arena style concerns (www.noellecotton.blogspot.lt, para 6);

·      HRI goal is to develop a new image as a luxury brand, which pursue satisfy consumers needs.

 

 

 

WEAKNESSES

 

·      Their food is pretty expensive compared with other establishments;

·      Target market are tourists and mostly middle–income or high-income people;

·      HRC has particular target and one of them is rock music fans. Rock music is not palatable to all customers, who enter the coffee shop;

·      Most of fresh foods arrive from oversea whereas some countries prefer local and traditional food. Especially nations like Japan, China, Philippines and other countries have specific eating habits (www.ukessays.com);

·      Difficult to obtain new customers – the theme restaurant has a handful of loyal customers and they are dependent on them (www.mbaskool.com);

·      Due to a constant flow of clients, like in many other fast food restaurants, consumers might not get enough of the required attention; customers always need to wait while is there is a high flow of costumers.

 

 

OPPORTUNITIES

 

·      To open the first coffee shop in Vilnius, located in Old town area. It is often a quite crowded place, especially attractive to tourists and young people;

·      Majority of young people love rock music, more and more foreign visitors stay on vacation in Vilnius due to its attractiveness and charm, in some cases not costly;

·      Making a special diet, gluten-free, vegan, vegetarian menu would captivate additional clients, who have any kind of allergies or food preferences;

·      At the moment, there is not a single rock bar in Vilnius. In this manner, Vilnius old town would be an ideal place to start up business.

 

 

 

 

 

THREATS

 

·      Although many young people in Vilnius are crazy fans of rock music, however, teenagers who were born with a silver spoon in their mouths, prefer to show or pretend that they are of a high social status when they experience in expensive restaurants;

·      Rental cost is also one of the problems for all investors want to build a business in Vilnius, especially in the city center;

·      There are many others coffee – bars in the capital. As follows, there are many strong competitors with high market share and affordable price: Republic, Bix bar, Portobello bar, Uncle Sam’s American pub, Caffeine Roasters, Vero café, Huracàn coffee. There are no direct competitors, however, they have competitors regarding certain segments.

 

 

After SWOT analysis considerations, it could be seen that it would be possible to implement Hard Rock Cafe in the selected market, on this occasion this report analysing Lithuanian market. Recently, Lithuania has successfully transitioned from an emerging market into a mature economy. The country is an attractive location for investors thanks to its combination of low corporate tax levels (which are between 5 and 15%), and its strategic geographical location between Central Europe, Scandinavia and Russia (investlithuania.com, para 4). Consequently, the current economic position confirms that Hard Rock Café would flourish in Lithuanian’s market.  

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