This particular case is about the implementation of the popular fast-food chain, Burger King, into the Japanese market. Despite its’ strong market position in other countries, Burger King has some difficulties to face within the Japanese market. In this report, my team and I will analyze Burger King’s current situation and problems and suggest alternatives. The situation at hand is Burger King’s downfalls within the competitive Japanese market. Burger King faces tremendous competition. McDonald’s controls half of the entire fast-food market in Japan having 2,000 outlets and generating $2.5 billion in sales. KFC has 1,040 stores making it number two in the fast-food market. The most effective way to analyze Burger King’s situation is …show more content…
There was a lack of consistency in terms of marketing and long-term strategies for success. Ultimately, Burger King failed in defining its own company culture. This weakness incurs another weakness: the development of weak relationships between the company and franchisors.
Second, Burger King presents some weaknesses in the financial field. Burger King’s revenues have fluctuated since the economic recession. Noting important figures in 2010, revenues declined to $2.5 billion, a 1.4% drop from 2009. Those past performances are lower than others as we can see in this chart provided by Capital IQ:
Even if Burger King covers a large number of countries all around the world, the international brand depends heavily on the United States’ market which represents 60% of its sell points and about 68% of its revenues. Even though America is great for Burger King’s market success, that dependence can represent problems if the brand undergoes a local recession, social claims or regulation changes. The international franchises are also dependent on a few distributors. Both dependencies create weaknesses and increase risk of disruption in Burger King’s supply and distribution network.
Burger King’s main weakness regarding the Japanese market is facing all of its international brand competitors. Focusing specifically on the competition between McDonald’s and Burger King, we see that it was very intense with real “price
An unsuccessful attempt to expand into US markets also puts the companies at risk for experiencing loss in capital. Many new stores will have to be designed and built in the US markets in convenient locations. One must recall that Wendy’s absorbed the company in 1995, and only 11 years later spun it off as its own company again. Wendy’s could not figure out how to successfully expand Tim Hortons in the US, which makes one wonder if Burger King will be any different. It has been proven before through the example of Wendy’s and Krispy Kreme that it is difficult to penetrate markets across borders (Hemmadi, 2014).
Burger King and Wendy’s are among the top fast food chains in America, but this fact doesn’t elude either chain from having their negative and positive features. Burger King is cheaper, and has a wider assortment of food than Wendy’s, which makes Burger King more desirable to many Americans. What Wendy’s lacks in diversity, and lower priced food when compared to Burger King becomes irrelevant due to the higher speed and superior quality food they offer. Both qualities of Wendy’s help to maintain equal competition between the two in the fast food market of America.
Unlimited, endless, fast food choices, and yet there are two that stand out above the rest. McDonald’s and Burger King are the two biggest burger fast food chains in the world. So let me ask you this, who has a better menu? Who’s Cheaper? And which one is healthier? This debate will once and for all come to an end, once all of these points have been met throughout my paper. McDonald’s vs. Burger King has been a long running argument. You will finally come to realize that McDonald’s is the better choice for you.
About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.
With KFC operating as a franchise, it is required to pay a percentage of the revenue it has received to its parent company located in the United States. One of the important factors to be considered is regarding the current economic condition and growth forecast of the country it is operating in. In addition if the economy is experiencing a downturn, therefore affecting the country’s income per-capita, surely KFC shall be experiencing a decrease in the demand of their product. However, if the economic climate of the country is good which leads to an increase in disposable income, then more people are willing to spend their money at fast food restaurant that is considered a
Even though McDonald’s and Burger King are really similar, they are also really different. They both try to have good advertising but McDonald’s is, most of the time, ahead. Their food seems to have the same condiments, but again, they are far away to be the same. They appear as the two most famous fast food restaurants around the world, but each one of them has their own
REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008
McDonalds (McD’s) and Burger King (BK) are key players in the fast food industry and have been competing for many years. They both provide similar food that is prepared quickly for a low price. So what sets them apart? The difference between McD’s and BK is their corporate culture – operational management. The manufacturing method at McD’s follows the “Doing It All For You” versus “Having It Your Way” at BK.
There are many advantages and disadvantages for Ben & Jerry’s to penetrate the Japanese market by relying on 7-Eleven, an
McDonald’s as we know is the biggest multinational-corporation in fast-food industry. McDonald’s is a symbol of American power and hegemony just like Coca Cola and Nike which its operations is all around the world. And how McDonald’s could successfully entering global markets ? the key components is its standardization in all McDonald’s outlets in the world known as QSC&V (Quality, Service, Cleanliness, Value). You can see and feel the same burger quality, same fast service, cleanliness of restroom and the same price in all McDonald’s outlets in every country. McDonald’s also made a strong relationship with supplier because this is another key success, every supplier which supply
This case study determines the critical success factors used by Subway Restaurants Corporation to expand nationally, which the corporation wants to use also to expand internationally. In addition, this paper describes the competition and the prospect success in Asia-Pacific and Latin America. In general, the fast food industry is discovered with respect to the history and future plans of fast food chain Subway international for expanding and accretion in Asia-Pacific and Latin America, containing the four factors that Subway should use to compete and success in those markets. Each proposed country market has unique cultural and religious requirements should be realized by Subway, as well as the consumption patterns, market trends, and the franchise values which determine from the local traditional fast food compared to the viewpoint of Subway’s healthy alternatives and low expansion costs.
Burger King has external stakeholders and internal stakeholders that are part of its success. The company sells its products in its 13,000 outlets in 79 countries worldwide. Its global sales in the year 2014 were $23 billion. High sales have enabled the company to be sustainable. The company also partners with financiers to help fund acquisitions such as $9.4 billion debt financing agreements with JP Morgan and Wells
The three restaurants are succeeding in their value propositioning. What set Burger King apart from their competition is that they
1. Competitors – As there are many other restaurants who are trying very hard to compete with McDonalds like KFC, Burger King, and Burger Fuel etc. They are also serving people with same kind of services like McDonalds and burger king is really giving a tough competition to McDonalds at the moment.
• Burger King’s sales have been falling steadily over recent quarters and were down 2.3% in the year to the end of June, while profits were flat compared to the same period a year earlier.