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Posted on April 27th, 2014, by

Before conducting the aggressive international market expansion, Hard Rock Café should assess accurately its current strengths and weaknesses as well as opportunities and threats which may affect consistently the organizational performance and the future of the company in the market. In this regard, the SWOT analysis reveals actual and potential internal and external factors that may affect the development of the company and its position in the market. Therefore, Hard Rock Café can maintain its effective marketing performance and its successful business development.

SWOT analysis of Hard Rock Café:

StrengthsWell-qualified personnel

Brand image

Well-developed chain of restaurants, hotels, and casinos

WeaknessesThe focus on British and European markets mainly

The personnel turnover raises the problem of the retention of well-qualified employees

OpportunitiesInternational market expansion

Taking the lead in the market

Diversification of businesses

ThreatsTight competition

Negative international business environment

Cultural differences


–                PESTEL Analysis

In addition, while choosing the target country, where to expand its restaurant or hotel and casino business, Hard Rock Café should conduct the PESTEL analysis. In this regard, the political environment is very important because the company has to operate in the favorable political environment. The stable political environment is favorable for the successful business development. The company cannot operate successfully, if the political situation in the target country changes fast and unexpectedly. The political situation should be foreseeable.

The economic environment also plays an important part in the successful business development and choosing the right country to launch its business. In actuality, the global financial crisis has had a negative impact on the business development of Hard Rock Café and created negative economic environment. Nevertheless, the company should take into consideration the economic potential of the target countries because some countries may recover faster than others.

The social environment affects the international business development of Hard Rock Café too. The social environment involves cultural traditions and norms of the target country. Obviously, the company cannot open its casinos in the country, where gambling is legally banned. Consequently, the company should take into consideration social environment of countries, where Hard Rock Café plans to launch its business.

In addition, the company should take into consideration the technological environment because consumers prefer comfortable conditions when they stay in the company’s hotel or dine in a restaurant, for instance (Pogue, 2004). Therefore, Hard Rock Café should implement new technologies. As technologies progress fast, the company should choose the country, where technologies are implemented fast and allow consumers to benefit from using new technologies.

In the contemporary business environment, Hard Rock Café has to take into consideration environmental issues because consumers all over the world grow more and more concerned about environmental issues. Hard Rock Café’s business can have a negative impact on the natural environment. Therefore, the company should develop effective approaches that are environment-friendly. The company should be able to cooperate with local communities and elaborate positive environmental policies.

Finally, the legal environment is also important for the stable business development. The company should focus on countries that have stable legislation and transparent economic policies. The transparence and stability of legislation and protection of basic human rights is extremely important for the successful business development of such a company as Hard Rock Café. Hard Rock Café is accustomed to operate in the open market economy. The company respects principles of the fair competition. Therefore, Hard Rock Café is likely to face difficulties, if the target country faces the problem of the transparent and stable legislation.

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