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Burger King Case Analysis

Decent Essays

The management situation here is that Burger King is attempting market development by expanding into Japan. However, they must first understand many aspects that influence the Japanese's market. The aspect of Japan economic environment that burger king must understand is that Japan was the third largest economy in the world, however, know they are struggling to escape deflation and that in turn is lowering living standards according to the New York times article title “Why Japan’s Economy Posted Surprisingly Strong Growth”. This aspect in the economy will force Japanese consumer to demand more value from the product for their yen for them to be satisfied. With declining living standards and deflation, Japanese consumers do not have much disposable money and therefore would make it difficult for Burger King to give them a good reason to go spend it at BK for a Whopper instead of a cheap local burger. The political aspect that they must be aware of is that burger king collaborating with Japan Tobacco which is partly owned by the ministry of finance allows them to also be a government partner. This is advantages in that the government will be supporting them financially. however, since they have relaxed restrictions on gasoline sales then it shows that Japan will likely be an even better market in a few more years. The cultural aspect that they must understand is that Japanese youth does like many American styles and are aware of the Hollywood sensations. This aspect of culture

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