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Sysco (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Sysco 

SYSCO Corporation (SYSCO) distributes food and related products primarily to the foodservice or food-prepared-away-from-home industry. SYSCO, through its subsidiaries, engages in the marketing and distribution of a range of food and related products for foodservice industry in the US and Canada. Strong distribution network gives SYSCO a relative competitive advantage. However, increasing competition due to industry consolidation and new larger entrants could affect SYSCO’s margins and market share.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong distribution network
  • Inorganic growth
  • Consistent revenue growth and high revenue per employee

Weaknesses

  • Geographic concentration
  • Lack of backward integration

External

Opportunities

  • Growing foodservice sector
  • Expanding demand for private label products
  • Higher demand for organic products

Threats

  • Increasing competition
  • Increasing cost of packaging materials
  • Regulations
  • Shift to vegetarianism
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