SWOT

 Strengths  Weaknesses
 Differentiation  Liquidity
 Strong Management  Business Model
 Human Resource (Limitation of current
Policy model to open only in
 Fun Culture warm climate areas)
 Excellent Information
Technology
 Franchise Satisfaction
SWOT
 Opportunities  Threats
 Broaden Menu
 Partner and expand to
non-core markets by
creating Sonics
express non-drive in
for cold weather areas.
 Continue to build in
developing markets
 Attract younger
generations
 Low entry barriers
 Aging population
 Competitors (All food
providers, mom and
pop restaurants,
McDonalds, Wendys)
 Lower startup costs for
competitors entering
the market
TOWS
 SO  ST
 Customer satisfaction  Utilizeexisting
and loyalty supports franchises to
expansion experiment with
healthier products
 WO
 Change business
model by adding a
sonic express
 CURRENT STRATEGY

Market expansion

Differentiation

Development strategy
 Market expansion: a multilayered growth
strategy design to diversify potential and strengthen
profitability

 Increased number of restaurants

 Higher media expenditures

 Unification of chain operations

Differentiation:
The specialty menu allowed the
chain to:
-differentiate itself from other
fast-food outlets
-avoid price wars with its major
competitors

Points of quality (aluminum foil,

Styrofoam cups)

The differentiated concept

consists of personalized, fast,
and convenient carhop service
as well as unique menu items
Development strategy

Relies on:

 Franchise expansion
 Same-store sales increases

(low risk, high return)

WHEN WAS THE STRATEGY LAST
CHANGED?

In 1995 Sonic introduced “Sonic 2000” an

aggressive multi-layered strategy to further unify
the company in terms of a consistent menu,
brand identity, product, packaging, and service.”
CORPORATE CULTURE

 Create a positive environment for

employees
 The promise of a positive work
culture and comprehensive benefits
 The annual Dr Pepper Sonic Games
created to motivate employees,
enhance performance, develop
customer service skills, and promote
employee retention
Is the company involved in a
planned change program?

 Install new IT system to centralize

information for better reporting and
communication
 Change store layouts/facade
IS THE MIS EFFECTIVE?

 The company’s management information

system and use of information technology
are effective.
Sonic attributes its successful
operations to five essential
components:
 A multilayered growth strategy
 A highly differentiated concept
 An accelerated expansion program
 Solid financial performance
 Corporate Culture - Training