Cracker Barrel Old (CBRL) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Cracker Barrel Old (United States)

Based on various researches at Oak Spring University , Cracker Barrel Old is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, there is backlash against globalization, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, etc

---

---

---

---

Introduction to SWOT Analysis of Cracker Barrel Old

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Cracker Barrel Old can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cracker Barrel Old, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cracker Barrel Old operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

---

SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Cracker Barrel Old can be done for the following purposes –
1. Strategic planning of Cracker Barrel Old
2. Improving business portfolio management of Cracker Barrel Old
3. Assessing feasibility of the new initiative in United States
4. Making a Restaurants sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cracker Barrel Old

---

Strengths of Cracker Barrel Old | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Cracker Barrel Old are -

High switching costs

– The high switching costs that Cracker Barrel Old has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Sustainable margins compare to other players in Restaurants industry

– Cracker Barrel Old has clearly differentiated products in the market place. This has enabled Cracker Barrel Old to fetch slight price premium compare to the competitors in the Restaurants industry. The sustainable margins have also helped Cracker Barrel Old to invest into research and development (R&D) and innovation.

Diverse revenue streams

– Cracker Barrel Old is present in almost all the verticals within the Restaurants industry. This has provided Cracker Barrel Old a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

High brand equity

– Cracker Barrel Old has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cracker Barrel Old to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Highly skilled collaborators

– Cracker Barrel Old has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Restaurants industry. Secondly the value chain collaborators of Cracker Barrel Old have helped the firm to develop new products and bring them quickly to the marketplace.

Strong track record of project management in the Restaurants industry

– Cracker Barrel Old is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Successful track record of launching new products

– Cracker Barrel Old has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cracker Barrel Old has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Digital Transformation in Restaurants industry

- digital transformation varies from industry to industry. For Cracker Barrel Old digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cracker Barrel Old has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Effective Research and Development (R&D)

– Cracker Barrel Old has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Cracker Barrel Old staying ahead in the Restaurants industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Low bargaining power of suppliers

– Suppliers of Cracker Barrel Old in the Services sector have low bargaining power. Cracker Barrel Old has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cracker Barrel Old to manage not only supply disruptions but also source products at highly competitive prices.

Ability to lead change in Restaurants

– Cracker Barrel Old is one of the leading players in the Restaurants industry in United States. Over the years it has not only transformed the business landscape in the Restaurants industry in United States but also across the existing markets. The ability to lead change has enabled Cracker Barrel Old in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Operational resilience

– The operational resilience strategy of Cracker Barrel Old comprises – understanding the underlying the factors in the Restaurants industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

---

---

Weaknesses of Cracker Barrel Old | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Cracker Barrel Old are -

Slow to strategic competitive environment developments

– As Cracker Barrel Old is one of the leading players in the Restaurants industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Restaurants industry in last five years.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cracker Barrel Old is slow explore the new channels of communication. These new channels of communication can help Cracker Barrel Old to provide better information regarding Restaurants products and services. It can also build an online community to further reach out to potential customers.

Capital Spending Reduction

– Even during the low interest decade, Cracker Barrel Old has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Restaurants industry using digital technology.

No frontier risks strategy

– From the 10K / annual statement of Cracker Barrel Old, it seems that company is thinking out the frontier risks that can impact Restaurants industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

High bargaining power of channel partners in Restaurants industry

– because of the regulatory requirements in United States, Cracker Barrel Old is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Restaurants industry.

Increasing silos among functional specialists

– The organizational structure of Cracker Barrel Old is dominated by functional specialists. It is not different from other players in the Restaurants industry, but Cracker Barrel Old needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cracker Barrel Old to focus more on services in the Restaurants industry rather than just following the product oriented approach.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Cracker Barrel Old supply chain. Even after few cautionary changes, Cracker Barrel Old is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cracker Barrel Old vulnerable to further global disruptions in South East Asia.

High dependence on Cracker Barrel Old ‘s star products

– The top 2 products and services of Cracker Barrel Old still accounts for major business revenue. This dependence on star products in Restaurants industry has resulted into insufficient focus on developing new products, even though Cracker Barrel Old has relatively successful track record of launching new products.

Products dominated business model

– Even though Cracker Barrel Old has some of the most successful models in the Restaurants industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Cracker Barrel Old should strive to include more intangible value offerings along with its core products and services.

Need for greater diversity

– Cracker Barrel Old has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Low market penetration in new markets

– Outside its home market of United States, Cracker Barrel Old needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

---

Cracker Barrel Old Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Cracker Barrel Old are -

Low interest rates

– Even though inflation is raising its head in most developed economies, Cracker Barrel Old can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Cracker Barrel Old can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Manufacturing automation

– Cracker Barrel Old can use the latest technology developments to improve its manufacturing and designing process in Restaurants sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cracker Barrel Old to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Cracker Barrel Old to hire the very best people irrespective of their geographical location.

Use of Bitcoin and other crypto currencies for transactions in Restaurants industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cracker Barrel Old in the Restaurants industry. Now Cracker Barrel Old can target international markets with far fewer capital restrictions requirements than the existing system.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Cracker Barrel Old is facing challenges because of the dominance of functional experts in the organization. Cracker Barrel Old can utilize new technology in the field of Restaurants industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Cracker Barrel Old to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Loyalty marketing

– Cracker Barrel Old has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Developing new processes and practices

– Cracker Barrel Old can develop new processes and procedures in Restaurants industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Building a culture of innovation

– managers at Cracker Barrel Old can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Restaurants industry.

Leveraging digital technologies

– Cracker Barrel Old can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Using analytics as competitive advantage

– Cracker Barrel Old has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Restaurants sector. This continuous investment in analytics has enabled Cracker Barrel Old to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cracker Barrel Old to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Cracker Barrel Old can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Cracker Barrel Old to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

---

Threats Cracker Barrel Old External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Cracker Barrel Old are -

High dependence on third party suppliers

– Cracker Barrel Old high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Restaurants industry are lowering. It can presents Cracker Barrel Old with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Restaurants sector.

Regulatory challenges

– Cracker Barrel Old needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Restaurants industry regulations.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Cracker Barrel Old needs to understand the core reasons impacting the Restaurants industry. This will help it in building a better workplace.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Cracker Barrel Old business can come under increasing regulations regarding data privacy, data security, etc.

Environmental challenges

– Cracker Barrel Old needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Cracker Barrel Old can take advantage of this fund but it will also bring new competitors in the Restaurants industry.

Technology acceleration in Forth Industrial Revolution

– Cracker Barrel Old has witnessed rapid integration of technology during Covid-19 in the Restaurants industry. As one of the leading players in the industry, Cracker Barrel Old needs to keep up with the evolution of technology in the Restaurants sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Cracker Barrel Old may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Restaurants sector.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Cracker Barrel Old can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Cracker Barrel Old prominent markets.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Cracker Barrel Old.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Cracker Barrel Old will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Easy access to finance

– Easy access to finance in Restaurants industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cracker Barrel Old can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Cracker Barrel Old in Restaurants industry. The Restaurants industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

---

Weighted SWOT Analysis of Cracker Barrel Old Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Cracker Barrel Old needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of Cracker Barrel Old is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of Cracker Barrel Old is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Cracker Barrel Old to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Cracker Barrel Old needs to make to build a sustainable competitive advantage.

--- ---