Published by MBA Skool Team, Last Updated: April 29, 2020
SWOT analysis of Nandos analyses the brand by its strengths, weaknesses, opportunities & threats. In Nandos SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Nandos to benchmark its business & performance as compared to the competitors. Nandos is one of the leading brands in the food & beverages sector.
The article below lists the Nandos SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Nandos SWOT Analysis:
For Nandos, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Nandos looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Nandos :
1. Renowned Global chain with over 750 restaurants in over 40 countries 2. Nandos’ Flame Grilled Peri Peri Chicken is believed to be the best in the world 3. Nando’s chicken are considered as healthy along with the superior taste as well
4. Franchisee model has allowed Nando’s to expand rapidly in global markets
5. Advertising Age magazine named Nando's as one of the world's top 30 hottest marketing brands
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Nandos SWOT Analysis:
1. Currently operating in only metro cities in India which reduces brand visibility 2. Absolute focus on Chicken reduces the inflow of vegetarians which hampers other vegetarian items in the menu 3. Parent company IRL’s financial trouble reduces the expansion plans of Nando’s across Indian Market
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Nandos SWOT Analysis:
1. Hotel Industry is forecasted to grow in double digit figures, which presents a significant opportunity to Nandos 2. Innovate with vegetarian menu items and market them as well along with Chicken
3. Huge expansion opportunity in sub metro cities with the enormous success in the metro cities
4. Nando’s India acquisition by a private equity firm will fuse the much needed funds required for expansion
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Nandos are as mentioned:
1. Franchisee IRL, for India, may not sell its stake and also may not be able to fund the expansion plans for Nandos because of its poor financial condition 2. Intense competition from other international player in Indian Market 3. Growth in number of players is more than the growth of the demand itself and it will lead to further competition and reduce overall profitability of the industry
There are several brands in the market which are competing for the same set of customers. Below are the top 5 competitors of Nandos:
Anyone who wants to eat good quality food in a fast casual dining restaurant
Children and youth of middle and upper middle class families especially Chicken lovers
Flame Grilled Chicken
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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