Extensive SWOT Analysis Of Circle K – One Of The Most Widely Recognized Convenience Stores

Quick Stats on Circle K

Founder	Fred Harvey
Year Founded	1951
Origin	El Paso, Texas, United States
No. of Employees	40,000+
Company Type	Subsidiary
Market Cap	$ 722.22 Million (2021)
Annual Revenue	$ 11.11 Billion (2020)
Net Income/ Profit	$ 559 Million (2020)

 

Products & Services by Circle K

• Polar pop 
• Convenience stores 
• Snacks & Beverages 
• Car wash services
• Fuel and recharge services 
• Coffee corners

Competitors of Circle K

This brand is globally recognised and has heavy competition with its peers in the convenience store, retail industry. The top 6 competitors of Circle K are said to be:

• Ampm 
• 7 eleven
• Stewart’s shops 
• Quiktrip
• PDQ Food Stores
• BP

Now that the general overview of the brand is completed, let’s start on with the main objective which is the SWOT analysis of Circle K. 

SWOT Analysis of Circle K

SWOT analysis means getting an overview of the company of how it is performing in the market. The SWOT analysis of Circle K represents strengths, weaknesses, opportunities and threats of the company. A company’s SWOT analysis can help the managers to predict where it stands in the competitive market and where it can stand in the future market. It also helps to make strategic plans. The SWOT analysis will help to stay ahead and aware of the challenges in the industry. 

To better understand the SWOT analysis of Circle K, refer to the infographic below:

Now first let’s begin with the strengths of the company from the SWOT analysis of Circle K.

Strengths of Circle K

The strengths of a company are based upon the internal factor, it provides you with insight about the reasons for success in the market that they are in. These come into the category where we require to balance them with other factors and strengthen them to progress in the business world.

• Extensive Product Line: Circle K is a banner with lots of product lines, it provides convenience products, including food, hot and cold beverages, mobility services, including road transportation fuel and charging solutions for EVs.
• Store Locations: The stores of Circle K are located collectively in many areas – a fuel bunk, convenience store, coffee store, car washing services, food and beverages all at the same place to provide the customer as many products and that too in a shorter duration.
• Acquisition: The acquisition of Statoil, Irvings oil stores, mac’s and kangaroo express have led to the rapid growth of Circle K in many regions of the world. 
• Brand: As said in the acquisition, the parent company is connecting all other smaller subsidiaries to Circle K and rebranding it. This made it a surging and well-known brand globally. 
• No.of Stores: There are 1,900 stores and more under the Circle K banner all around the world (14 countries) and the count holds a great value.
• Dedicated Workforce: The workers in the stores are trained online to maintain all the workforce in one page of development and training. The workforce is customer friendly and has been a great support to the brand amidst the pandemic.  

Weaknesses of Circle K

The weakness of a company is based upon the internal factor and it provides you insight into the reasons for the failure of the business in the market. These come in those categories where we can improve them.

• Limited E-commerce Presence: There is a limited e-commerce presence of Circle K in its nation. Recently it is working towards facilitating home delivery services through enrolling e-commerce facilities.
• No Presence in Emerging Countries: Emerging countries like India and Russia with a high demand for convenience stores have no Circle K. India is the next big country where the EV automobile market is rising and Circle K is still not considering it. 
• EV’s Not Yet Dominating the US Roads: Cars with CNG  are not driving enough sales to the convenience stores anymore because once the gas is filled in a car it works for a week for an average person. On the other hand EV vehicles need a charge of 2 to 3 times a week which is why the importance of EVs is getting inflated in the US. 

Opportunities for Circle K

Opportunities of a company are based upon the external factors of the company. It gives you insight into the reasons or areas that can lead the business into more light and can contribute to the business.

• Marketing: This rebranding of Circle K has a lot of scope in profits with the right amount of marketing and this will help reach out to the customers more effectively. 
• Opening in Residential Areas: The C-stores on the highway and outskirts are blocking the potential of Circle K, hence situating Circle K’s convenience store in a residential area with the right location will help Circle K’s market grow more rapidly. 

(Circle K’s Click & Collect and Home Delivery Facilities, Source: Circle K)

• Home Deliveries Using E-commerce: Before the pandemic, Circle K used to never count the importance of e-commerce in its business but during the pandemic when the business was drowning it finally took the support of e-commerce and started home deliveries in the nation, by the time with the help of e-commerce their office team and members delivered over 5 million meals in Canada, 3 million coffees and 40 million meals in America to the residential neighbourhoods and health care workers.

Sounds awesome, right? If yes, then you must have now understood the importance of digital marketing and e-commerce. It is not like when you are in need that time only you adapt to the changes. If Circle K would have implemented it before the unseen events it could have gotten much better results in actual events. So, the sooner you will adopt the latest digital marketing skills the better you will get benefited in the future. So, do check out for your benefit…

• Acquisitions and Mergers: Bringing more companies under the Circle K brand will assist in expanding the number of stores. Acquisitions and mergers will also help the market capital to grow.
• Diversification: Entering into new markets such as lifestyle and clothing and adding them to the convenience stores will help the brand to explore new markets and more positively respond to the merrier.
• Innovation: The innovation with foods and beverages to add new products to the product line will always be an opportunity to take upon. 

Threats to Circle K

Threats of a company are based upon the extremely external factors that you have no hold on. They can come whenever or wherever. The best you could do is build up strong and be ready to face the threats when it comes.

• Competition: The increasing competition in the retail industry mainly in the convenience store market will be a challenge and a threat where the brand will need to expand, update and improve in every segment eventually to keep an edge over competitors.
• Customer Behaviour: In this growing world the customers’ needs change accordingly with seasons and with trends. Keeping up to different trends and being season friendly with the expectations and needs of customers is getting quite difficult for the company.
• Legislations and Restrictions: The unannounced laws and restrictions on products or requirements throughout the period always disturb the daily maintenance of the business.
• Advance Technology: As technology is an ever-evolving part of everything it may become a threat as new installations take a huge part of the budget it may disrupt the business models. Manual sales and customer friendly offers or coupons encourage customers to lean towards retail stores than other options.

For large brands like Circle K, it is complex to make decisions based on long and large or too many detailed reports but SWOT analysis is a great way to break down the complexity and it helps to know where the company stands to decide according to the present time-factors that will positively or negatively affect the company.

This ends our extensive SWOT analysis of Circle K. Let us conclude our learning below.