Identify Your Competitive Advantage Introduction The Cheesecake Factory became a dream in the 1940’s for Evelyn and Oscar Overton. “Always known as an excellent cook, Evelyn created her Original Cheesecake recipe that everyone loved. By the late 1940’s, she opened a small cheesecake shop in Detroit”(TCF Co. LLC. ). “In 1972, with their children grown, Evelyn and Oscar, now in their early 50’s, decided to move their cheesecake business to Los Angeles. With the last of their savings, they opened a 700 square foot store, “The Cheesecake Factory”” (TCF Co. LLC. ).
SWOT Analysis, “Situation analysis in which internal strengths and weaknesses of an organization, and external opportunities and threats faced by it are closely examined to chart a strategy’ (WebFinance, Inc. ). In this document I will be explaining the strengths and weaknesses of, The Cheesecake Factory using a SWOT. This will be done by data that was researched from an existing document and my own thoughts. Also I will advise a way to utilize their strengths and minimize their weaknesses. There are several strengths and weaknesses that will be ouch on in this document.
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The strengths that is present to me; “Extensive menu and bakery product offering” (Group 7) “Leveraging IT increasing operating efficiency’ (Group 7) “Strong name, popularity mainly on North American Market” (Group 7) “Good advertisement methods” (Group 7) The weaknesses that is present to me; “Lack of international expansion compared to the other global brands” (Group 7) “Relatively small scale of operations” (Group 7) The menu that The Cheesecake Factory, has to offer has over 200 menu selections for customers to choose from. To have so much to offer to the customer is great.
Not only do they have a variety of items to offer they have signature cheesecakes and specialty desserts to offer as well. “We will gladly honor requests to modify your order to suit specific health or dietary needs” (TCF Co. LLC. ). The restaurant also notices the needs for customers with health problems and for the customers that are eating healthy. Adding value to each type of customer shows that they care about their customers. The use of the internet to sell products that you have to offer increases sales and dds a whole new aspect to the business.
By offering an online menu to the customer the restaurant is hitting each aspect of the customer. For those that want one of the legendary cheesecakes that the restaurant has to offer they can get one online. This allows the customers that do not have the transportation to get to the restaurant can bring the restaurant to them. The use of information technology for advertisement is great for a business. It also allows for the customer to learn more about the restaurant and its roots.
Also it allows the customer to keep up with the changes of he restaurant and allow them to learn about what the restaurant is doing behind the scenes with their involvement in the community and charities. Again this shows the customer that they care. “Finding that Los Angeles loved their cheesecakes as much as Detroit, their reputation and sales grew, creating a need for a larger bakery. 1975 marked the beginning of the most creative and productive period of their business endeavors” (TCF Co. LLC. ). The hard work and focus of the Overton’s paved the way for the future of the restaurant. In 1978, their son David founded The Cheesecake Factory restaurant in Beverly Hills, California” (TCF Co. LLC. ). In the present The Cheesecake Factory have over 160 locations. Their name became popular and known for the cheesecakes. “Evelyn created over 20 varieties of her delicious cheesecakes and other fantastic desserts, which were sold to hundreds of wholesale accounts” (TCF Co. LLC. ). From experience the cheesecakes are great and the food at the restaurant is awesome. My first time eating at the restaurant was a great experience which prompted me to tell my friends and family about it.
The service as great and the staff was pleasant. The environment was calm and very relaxing which to me made a great setting for a nice dinner. I taste the freshness in the food that was prepared. With the use of the internet and customers like me the restaurant name became known. The products and services that the restaurant offers to its customers is what made the restaurant so popular across the, United States. Adding value to their customers the way they do is what keeps the restaurant going and remain loyal to their customers. Although, The Cheesecake Factory has several trengths it also has its weaknesses.
One weakness that is present is the lack of international expansion compare to its competitors. The Cheesecake Factory is well known throughout North America. There are no restaurants abroad which leave for a small scale of operations. By branching into the new environments will allow the restaurant to gain new customers and possibly new items on the menu as well. Also this will allow the restaurant to create another level to their current operations to which will help manage the change, implementation, and transition to the new nvironment.
The business is continuing to build in North America and has plans to build restaurants abroad. “We currently have two licensing agreements in place for the Middle East and Latin America. The Middle East agreement provides for the development of 22 restaurants in five countries – United Arab Emirates, Kuwait, Bahrain, Qatar and the Kingdom of Saudi Arabia – with the opportunity to expand the agreement to include other markets in the Middle East and North Africa, Central and Eastern Europe, Russia and Turkey’ (TCF Co. LLC. ). I believe that this is a great move or The Cheesecake Factory to make.
I also believe that with their popularity in North America that they will be a success abroad. By keeping their strengths, values, and implement them abroad will help them with their success. Conclusion The Cheesecake Factory has a great foundation. It started with a dream and came to reality. The strengths that the business gained over the years, the value that it has for the customers and the community weighs heavy in the success of the business and its future. By using its strength and minimizing its weaknesses, the restaurant/ usiness can be even more successful in the future.
References Group 7 Chad Baker, Alena Olvecka, Edward Pasqualini,Barbora Volenticova, Lindsay Winkler, (2010), Marketing Plan: The Cheesecake Factory. Retrieved from http:// lindsaykwinkler. weebly. com/uploads/9/5/O/6/9506544/ marketing_plan_for_the_cheesecake_factory. pdf TCF Co. LLC. , (2002-2013), TheCheesecakeFactory. Retrieved from http://www. thecheesecakefactory. com/aboutus/ourstory/ourstory WebFinance, Inc. , (2013), businessdictionary. Retrieved from http://www. businessdictionary. com/definition/SWOT-analysis. html