Sonic Research

An external orientation recognizes the fallacy of the assumption that products, such as food and beer, will forever sell themselves; many companies or firms think that if they only could maintain their production and technological superiority. Looking outside, to the external environment, helps the company to the business environment results in major priority given to determining customer's needs and wants. How this may be changing as evidenced by shifts in buying patterns, and adapting products and services accordingly. The external focus also permits more responsiveness to other external forces that may factors, such as major competitive thrust, changing governmental laws, and regulations, economic conditions, trade union forces, and the like. ( Porter's five forces model) With such an external orientation, attention will more likely be directed to location new opportunities brought about by changing environmental conditions, rather than being engrossed with internal production. Such an orientation is more geared to meeting and even anticipating change, and like it or not the environment for doing business today is more and more dynamic today. Externally oriented firms usually have the advantage.

Sonic, which specializes in made to order fast food, is know for its specialty menus and personal carhop service. Sonic started as a hamburger and root beer stand in 1953 in Shawnee, Oklahoma, and has grown to more than 3000 drive --in 28 states, and northern Mexico, mostly located in the Sunbelt of the United States. Sonic is the largest chain of drive in restaurant, more than 750,000 people eat at sonic every day.

To study sonic the Porter's Five Forces Model is a great tool to understand Sonics success in a constantly changing fast food environment.

MICHEAL PORTER FIVE FORCES MODEL

MARKET ADVERTISING

Someone once said that "change is constant" and being a consumer oriented company, Sonic could not agree more. Their customers are changing. Baby boomers continue to lead age demographics trends. Now a days with the Latino population representing one, if not the fastest growing consumer segments. Two income and single parent families keep pressure on leisure time and make convenience factors ever more important meal choices. And parents are reasserting their role in decision-making when it comes to what their children eat. Advertising mediums are changing as well. Cable viewers continuous to increase, now exceeding the share commanded by the networks, and the Internet relentlessly pushes the boundaries of communication constantly forward.

To be successful in this constant change ambient, Sonic and its franchisees have continued to expand their reach to customers, increasing expenditure on TV and radio to about $110 million in 2003, up from $100 million the previous year. With so much money in advertising Sonic is a major sponsor college and professional sports on the major cable sports channel such as ESPN and TNT, as well as heavily advertising on a different niche such as USA, TLC, and MTV networks. All this advertising allows a matrix of products to specific customers in a myriad of ways. Second, cable advertising has proven to be especially effective in reaching