Identify Your Competitive Advantage
Christopher Mullins
Janine Przybyl
BUS 100: Introduction To Business
July 20, 2013

The Cheesecake Factory Inc, is a business that knows how to utilize their strengths, capitalize off their weakness, take advantage of opportunities and evade threats. Business in a capitalism or a free market are competitive and can be brutal if you don’t do a proper S.W.O.T analysis and understand the internal and external factors that impact businesses. Even though the family’s business has alway been different and had little competition since the close of their small business in Detroit, the Overton family has had great pie. Yet, it was the relentless work ethic and the open mind to new technology that allows The Cheesecake Factory Inc. to currently have 151 restaurants under their name; not to mention being the United States distributor of cheesecakes. The way Evelyn, Oscar, and later their son, David, used the S.W.O.T analysis to build the American dream was difficult at times, but the Overton family made it look easy as a cheesecake pie.
The moral and work ethic of Evelyn and Oscar was the backbone of this successful company, along with a warm, casual dining experience, and great menu options. In a free market you want to make your business and product different so that you can have an advantage; Evelyn’s recipe was this advantage. The Cheesecake Factory Inc. began in Los Angeles during 1972, where the elderly couple worked long hours and to build a solid reputation and clientele. Capitalism allows for free competition in the free market so the Overtons capitalized on the weaknesses of moving to a new area by, utilizing strengths founded in Detroit. Great products, the willingness to deliver, and support of local farmers, who provided good ole word of mouth advertising; yet having a new age approach to technology, also increased the rate of success for The Cheesecake Factory.
According to www.cheesecakefactory.com, in 1975 building a new and improved kitchen/bakery had introduced a new creative and productive frontier. Staying fully aware with external factors, such as technology, is vital when owning a business. Therefore by making needed technical advances, the Overtons saw an increase in the amount of various pies produced, an incline in sales, and more out-of-state business; because success in a competitive free market improves local economy, the Overton family, helped the economy by purchasing new delivery trucks and hiring delivery drivers. Embracing technology was The Cheesecake Factory Inc. main strength used to overcome obstacles like not being well known and being limited to the state of California.
Three years later, a second Beverly Hills location opened under the ownership of David Overton, who just took what came to him naturally and add a little ambition to achieve The Cheesecake Factory of today. David, recognized and exercised all the strengths of The Cheesecake Factory but really stuck with the fundamentals that made his family prosper. Remaining on top of external factors and competitors of the company, David introduced a diverse menu that boasted fresh ingredients, ample servings, and the warm, casual dining experience. Though the pricing of the The Cheesecake Factory is now equal to many other five star restaurants, they still remain profitable because of the ability to maintain a market advantage over any competition.
Threats such as limited locations and high pricing nearly brought the Cheesecake Factory to its closing, in the Recession of the new millenium. Yet once again, embracing innovative technology and becoming a presence on the internet has allowed for The Cheesecake Factory Inc. to continue being profitable and competitive or maybe people just loves pie. Making access to America’s cheesecake available to the world, was done by understanding the rules of a capitalistic market and the Overton’s commitment on an old family principle of hard work, providing the best quality product and experience. Social Media sites such as Facebook and Twitter are used for target marketing for businesses of our generation. The Cheesecake Factory menu options can be individually “liked”, which is a strong example of the use of technology, which in turn explains why the Overton family is still successful.
The American Dream was achieved by The Cheesecake Factory Inc., using different aspects of the S.W.O.T analysis and understanding capitalism. The Overtons used their strengths, such as quality food, great ethics and technology, to overcome weaknesses and threats. By embracing technology, external factors that would have limited their success is no longer an issue. David ensured that The Cheesecake Factory remained competitive by deploying innovative ideas and keeping in line with the Overton belief in quality. Once on the internet, the company reached new heights and was able to set higher profit margins, due to the ability to reach more customers.

REFERENCES
"History of The Cheesecake Factory". Funding Universe. Retrieved 20 July 2013
Kelly, MCGowen, Williams,(2013) Introduction to Business Mason, Ohio Cengage Learning
"The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2006" (Press release). Cheesecake Factory. 2012-02-06. Retrieved 20 July 2013 www.cheesecakefactory.com Retrieved 20 July 2013