Outback Steakhouse - Competitive Strategy

3975 Words Apr 25th, 2011 16 Pages
Executive Summary

Outback Steakhouse has enjoyed a dominant position in the casual dining market since inception. They have exponentially increased the number of locations each year; however their growth has apparently reached a plateau and they could potentially loose market share.
There is significant competitive pressure from rivals using marketing and advertising in attempts to lure away customers. Consumer loyalty is highly valuable and rivals will use whatever tactics necessary to gain that loyalty and establish a strong customer base. Competitive rivalry is relatively strong mainly due to the threat of new entrants and competitive pressure from rivals.
A restaurants success depends largely on a few key attributes including
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Of this amount, food and drink revenues alone were projected to be $476 billion, covering over 900,000 locations.
• Restaurants provided work for more than 9% of the U.S. workforce.
• On average, each American spent approximately $972 per year in restaurants.
• Restaurants mainly compete on price, location and quality
• The casual dining segment of the restaurant industry is relatively new, becoming more and more popular for people wanting a trade off between fast food and fine dining.
• Outback’s most significant competitive force is pressure from rivals using intense marketing and advertising in attempts to steal customers. Consumer loyalty is highly valuable and rivals will use whatever tactics necessary to gain that loyalty and establish a strong customer base.

Key Success Factors
• Brand identity is important. A solid reputation for high quality food and service is key.
• Convenient location provides greater access to the public and customers
• Costs need to be controlled in order to maintain competitive pricing.
• Supply chain management capabilities
• Ability to provide a dining experience and welcoming atmosphere

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