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In-N-Out Burger Is A Fast Case Study

S. Or from other countries may not be as familiar with the in-N-Out Burger brand compared with the brands of some of the chain's competitors. The ways in which consumers interact with businesses is also changing, as a result of social media. Consumers have become more media savvy, making them harder to reach with conventional advertising, but consumers respond well to sophisticated marketing techniques utilizing emerging technologies, social media and viral advertising.

The political/legal environment also can have an impact on the business at in-N-Out Burger. Although the direct legal environment is generally favorable, the indirect environment has some risks. For example, California is in dire financial conditions, which may result in increased corporate taxes, which would cut into in-N-Out's income. Legislation in response to the social trend towards healthier eating -- such as laws eliminating trans fats -- could adversely impact the company. A lawmaker in New York recently tabled a bill banning salt in restaurant food. As absurd as that example is, it represents the risk that food-related legislation can pose, especially at a fast food chain.

In addition, there are legal risks pertaining to intellectual property. in-N-Out has been...

The success of the in-N-Out brand, combined with the lack of national presence, only serves to encourage such infringement, which naturally devalues the in-N-Out brand and increases the company's legal costs.
The technological environment is evolving. There are many fronts where technology is impacting in-N-Out's business. In logistics, new technologies allow for improved efficiency in supply chain management. In the restaurants, new technologies can improve ordering taking and food preparation. In marketing, emerging social media can increase the company's ability to engage in word-of-mouth promotion. These trends can also work as disadvantages for in-N-Out Burger, if their competitors leverage these technologies more effectively.

The external environment for in-N-Out Burger is constantly evolving. In order for the company to excel going forward, it must understand these changes and adapt its strategy to meet the new challenges. Social and technological changes in particular have created many new opportunities in marketing. in-N-Out Burger has a strong brand in its operating area, and can leverage that to take advantage of new trends in the macroenvironment.

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