Hooters Inc. Case Study

Hooters Case study
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ContentsIntroductionSWOT AnalysisStrengthsWeaknessOpportunitiesThreatsPorters’ Five Forces AnalysisRivalryBargaining power of suppliersBargaining power of customersNew entrantsThreat substitutes
Hooter Case Study
Hooters, Inc. is an international American owned restaurant chain company. Hooters Company is as a merge by two privately owned companies: Hooters of America, based in Atlanta, Georgia and Hooters, Inc., based in Clearwater, Florida. Hooters deals with food products such as chicken wings, burgers, full bar, appetizers, steaks and seafood. The company uses a simple strategy of targeting young generation market and gaining popularity by primarily employing young beautiful women referred as "Hooters" as waiting staff. These waiting staff has a way of dressing that is sex appealing and this is the main image the company is using to carry out its business. However, Hooters, Inc. also employees men mainly in other departments. Besides the foods service menu, Hooters, Inc. have license of selling alcoholic drinks such as wine, beer and full liquor bar in some restaurants. Hooters Incorporation has over 500 shops outlets in the United States alone and over 100 restaurants in other countries such as Singapore, Canada, Germany, South Africa, Japan, Russia and many others.
Hooters Company’s customer target includes youths and few adults from upper middle and upper segment in the economy. The company focuses on customer lifestyle, age and income segmentation. Hooters restaurants are positioned strategically in some special locations such as casual beach with features such as music, sports viewing on large screens with the American fast food menus. The company has normal company structure as other businesses where one individual acts has a director and where its main goal is to make profit, observe environmental legal, offer quality and health food, create employment and serve customers to their satisfaction head it.
Problem Statement
Hooters, Inc. faces various issues in the industry, as the company struggles to meet its mission and objectives; it has to deal with competitors, government regulations and adherence to general health standards in the marketplace that competitors have paced out. To deal with its current situation, the company has decided to use of tools of analysis such as SWOT analysis and Porters 5 forces analysis. Despite the company its succession, it has faced the problems in the industry for a long time since its incorporation.
Hooters SWOT Analysis
SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis is a feature that that managers use to audit and analyze an organization his overall strategic position and the effects of the external environment towards its long-term objective. Opportunities and threats arise from the external environment of the business. However, opportunities can also be internal. The key aspect of SWOT analysis is the identification and creation of a specific business model that will incorporate all the resources and capabilities of an organization into achieving its objectives under the operational environment in the industry.
Hooters Strengths
Strengths can be tangible or intangible. They are the organizational qualities that lead the company to attainment of its mission. Strengths maintain endless success and continued profits for the company. Hooters Company strengths involve:
* The company has more than 500 hooters restaurants in the United States alone and about 100 in other countries where it operates.
* Hooters conduct various sponsorship programs such as in sports events. The company also holds its own beauty pageants.
* Hooters provide better services such as online ordering and offering of gift cards to customers.
* Hooters support activities such as charities through its own Community Endowment Fund kit.
* Hooters makes sure that its promoting its services and goals by promoting its brand by publishing Hooters magazines, calendars and many other merchandizes.
* Hooters recognized icon "Hooters Girls" makes it stand out from its competitors.
* The company has a special food portfolio of Burgers, seafood, full bar and chicken wings.
Hooters Weaknesses
These qualities are preventing hooters from accomplishing its mission and achieving its full potential. They negatively influence the company his growth and success. They include the following:
* Hooters face criticisms on their waitresses dressing code from some public members.
* Some customers claim that Hooters food consist of high calorific content, this has led to people who have health concerns not to visit the Hooters restaurants.
* The company has various lawsuits on this gender discrimination on staff employment. Most people do not think that the idea of Hooters Girls is a good strategy for operating business.
Hooters Opportunities
Opportunities occur in the environment in which an organization operates. This is when an organization takes advantage of other companies in the industry and executes a plan that will see it attain its mission and become more profitable than the other firms. Opportunities that arise in Hooters and that can make it achieve its strategies involve:
* A plan in the extension of merchandising. Hooters should execute a plan that will improve its merchandizing power. Good merchandizing will ensure the company attains its mission through implementations of its strategies.
* Expansion to other places that the brand does not cover. Hooters should consider a plan to expand its businesses to other countries mostly the developing ones such as countries in Africa. Expansions will increase its customer base and push for high profits.
* Introduction of seasonal menus. Seasonal menus ensure that the company accommodates specific customers during...