Applebee’s SWOT Analysis, Competitors & USP

Applebee’s SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Applebee’s, 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 Applebee’s to benchmark its business & performance as compared to the competitors, and make strategic improvements. Applebee’s is one of the leading brands in the food & beverages sector.

The article below lists the Applebee’s SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Applebee’s SWOT Analysis:

SWOT Analysis of Applebee’s

For Applebee’s, 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.

Applebee’s Strengths

The strengths of Applebee’s 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 Applebee’s :

1. A wide location base of almost 2000 restaurants
2. A comprehensive and reasonably priced menu
3. Innovative R&D department e.g. ‘Tableside Tablet Initiative’
4. Low capital investment through 99% franchised restaurant base

5. Better management of advertising, brand management, R&D and strategy under the franchisee setup

Applebee’s Weaknesses

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 Applebee’s SWOT Analysis:

1. Limited menu for vegetarians
2. Little scope of micro-management
3. Tough to monitor quality due to franchisee setup and limited geographic presence

Applebee’s Opportunities

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 Applebee’s SWOT Analysis:

1. ‘Clubbing at Bee’s’ for 20s – 30s age group
2. Rise in beverage demand with higher margins
3. Movement towards low-calorie food items

Applebee’s Threats

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 Applebee’s are as mentioned:

1. Recent vegan movement in USA
2. Family based casual diners reaction to Club Applebee’s (late night bar setup)
3. Increased competition from local other casual dining chains and independent restaurants

Applebee’s Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Applebee’s:

1. T.G.I. Fridays
2. Chili’s and Buffalo Wild Wings
3. Ruby Tuesday

Hence this concludes the Applebee’s SWOT analysis.

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About Applebee’s

Applebee’s Overview
Parent Company	dineEquity Inc.
Category	Restaurants: casual dining category
Sector	Food & Beverages
Tagline/ Slogan	See You Tomorrow
USP	Half rate entrée place for office going people in the afternoon and the open the midnight place for game night, girls night, karaoke night, etc. popularly called as Club Applebee’s
Applebee’s STP
Segmentation	Grill and Bar Segment
Target Market	Middle class, all age groups
Positioning	Fun and family-friendly neighborhood restaurant with healthy under 550 calorie menu items

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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