Sonic
SONIC CASE STUDY Sureshbabu Soundararajan 1. ... They have to understand, believe and live according to Sonic’s strategic intent is to offer their best service to their customers and also their goal is to offer different food with fun. Sonic’s success will depend on how well they go through this process of strategic intent in this competitive environment. ... Strategic mission of Sonic is to become one of America’s most loved restaurant brands. ... If this both are effectively linked and implemented it would have a positive effect on Sonic’s growth. ... Currently Sonic market is mainly concentrated in USA and Mexico. ... Considering this factors Sonic should formulate a strategy to serve these people. Also Sonic in future should have a track on the population growth of international countries and should predict how many restaurants are to be opened to serve the population. ... Sonic should consider this geographical distribution factor which includes the communication factor too. ... Sonic needs to analyze the ethnic distribution and has to change their menu according to the ethnic groups. ... The food taste for all these people varies so Sonic has to consider and fill their menu with food taste suiting all these ethnic groups. ... Sonic should consider this factor in their pricing strategies. ... Sonic has to analyze the economy growth and predict the future projection too. ... Sonic has to consider the various government policies which vary form border to border they have to organize their management methods in a customized way from border to border that would comply with the government policy and taxation terms. This is a important factor to be considered if Sonic is expanding internationally. ... This can be brought out by an example when McDonalds opened its wing in India what kind of cultural difficulties it faced all these factors should be considered by Sonic while expanding inside and also outside USA. ... Sonic’s partner Net portal provides sonic operators with centralized access to a broad range of communication tools, sales data reporting features and franchisee group communications. Sonic partner net also provide its employees training on how to handle these systems. ... Like wise any company not only Sonic and advance to a large extent if they develop by technology. ... Sonic can identify its potential in the global presence by analyzing various international markets where it can establish and improve their market growth. In order to step in to global market Sonic should consider all the segments in order to grow globally. ... For example SONIC is known for classics such as Bacon Cheeseburgers and Onion Rings, plus signature menu items such as Toaster® Sandwiches and Cream Pie Shakes. ... How does the company measure up against them Sonic’s main competitors are McDonalds, Burger king and Wendy’s. Although Sonic is smaller and more regional than the three big players, the feeling of competition is mutual. McDonalds holds 30093 restaurants, Burger king 11455, Wendy’s hold 6043 whereas Sonic holds 2432. Though less the growth of Sonic is considerably high when compared to its size. Despite the intense competition Sonic has been able to deliver some impressive results. During Sonic’s 50 year history, Sonic the nation’s largest Drive-in chain, has experienced phenomenal success, despite a turndown in 1970’s. Located primarily in Sun Belt states, Sonic is known for its personal carhop service and unique made to order menu items, including Toaster sandwiches, Extra-Long Cheese Coneys and Frozen and Fountain Favorites, Sonic’s specialty menu has allowed the chain to differentiate itself from the fast food outlets and to avoid price wars with its major competitors Sonic distinguishes itself on small but important points to quality. ... What are Sonic’s tangible and intangible resources? Which are more important as a source of competitive advantage Tangible Resources are the resources that can be quantified and measured in terms some essential tangible resources are Financial resources: Sonic’s borrowing capacity and its ability to generate funds internally. The company generates funds by signing up more franchisees Physical resources: At a typical sonic restaurant, a customer drives into one of 24 to 36 covered drive-in spaces, orders through an intercom speaker system, and has the food delivered by a carhop within an average of four minutes. Most Sonic restaurants also include a drive-through lane and many include patio seating. The Company has two operating subsidiaries, Sonic Industries Inc. and Sonic Restaurants, Inc. Sonic Industries Inc. serves as the franchisor of the sonic restaurant chain, as well as the administrative services center for the Company. Sonic Restaurants, Inc. ... Human Resources: It comprises of knowledge trust and managerial capabilities Clifford Hudson has spent the last 20 years of his career at Sonic Corp., an Oklahoma City-based, publicly-held company that owns, operates and franchises Sonic Drive-In restaurants (NASDAQ: SONC). ... Moore is president-Sonic Corp. ... Moore joined Sonic in June 1992 as vice president-Marketing and was promoted to senior vice president-Marketing and Brand Development in September 1995. She was named executive vice president-Sonic Corp. ... Under this two people sonic had a considerable growth. ... Highly Differentiated Concept As the nations largest chain of drive-in restaurants, SONIC is distinguished as the most highly differentiated quick-service brand through: Streamlined service delivery system Personalized Carhop service thats fast, convenient and a lot more fun than the typical drive-thru . ... Sonic’s uniqueness is making it survive in this competitive environment. ... Does Sonic have a sustainable competitive advantage? ... Sonic holds a sustainable competitive advantage against its competitors. Sonic maintains its ability to differentiate its products in a way that appeals to customers and to increase brand recognition in developing markets. Also Sonic maintains a cost advantage and develops distribution models. ... Sonic creates value for customers by creating uniqueness in their products. ... Rare Capabilities are capabilities that few if any competitors possess, Sonic possesses some capabilities which the competitors don’t have. ... Sonic conducts summer night campaigns to promote the sale of frozen favorites on warm summer evenings. ... Costly-To-Imitate: Sonic possesses some historical values which are hard to imitate by the competitors. Sonic did it by sticking to what made drive-ins so popular in the first place: made-to-order American classics, signature menu items, speedy service from friendly Carhops and heaping helpings of fun and personality. ... A big part of the SONIC difference is the belief that "owners make better operators." In fact, SONIC franchisees enjoy one of the most successful businesses and one of the lowest turnover ratios in the quick-service restaurant (QSR) franchise industry, with unparalleled opportunities for personal success. Non- substitutable capabilities: Which does not have strategic equivalent Sonic possesses some products which have a trade mark such as Toaster Sandwiches and fountain favorites has a trademark and cannot be duplicated by any substitutes. ... Evaluate Sonic’s financial position? Sonic recently reported its results for third quarter this year. ... 6% for company-owned restaurant at drive-ins open more than 15 months; • The opening of 53 new Sonic Drive-Ins during the quarter, including 45 by franchisees. ... The companys growing franchise base, along with its ascending royalty Structure, in turn continues to drive higher franchising income for Sonic. ... SONIC CASE STUDY Sureshbabu Soundararajan 1. ... They have to understand, believe and live according to Sonic’s strategic intent is to offer their best service to their customers and also their goal is to offer different food with fun. Sonic’s success will depend on how well they go through this process of strategic intent in this competitive environment. ... Strategic mission of Sonic is to become one of America’s most loved restaurant brands. ... If this both are effectively linked and implemented it would have a positive effect on Sonic’s growth. ... Currently Sonic market is mainly concentrated in USA and Mexico.