Compare And Contrast Mcdonalds And Burger King

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1. Executive Summary
Fast food is a mass production that is fast and efficient for busy families or individuals. South Africa has a growth in development of Fast foods and two of our leading competitors are McDonald’s and Burger King. By analysing these two company backgrounds and looking at the Market environment and using/ performing a Porters Five Forces Model on them will give us a better understanding on which is the leading fast food. By placing strategies in place will help the ‘unsuccessful’ company improve their current business status.

2. Background to McDonald’s and Burger King:
2.1. McDonald’s
McDonalds originated in Arizona 1953. In 1995 McDonald’s opened their first franchise in South Africa (S.A.) and now they
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• Burger King is one of their main competitors as they are relatively new to the market in S.A., McDonald’s needs to monitor at how much they’re spending on advertising and their prices as they have to compete against low costing businesses.
• McDonalds has a strong competition but they are open 24/7 thus available all the time putting competitors at a disadvantage. • Burger King is in close competition with McDonald’s according to their price of their burgers and other products.
• Burger King has fewer stores than McDonald’s currently but their mission is to continue to grow and develop their brand further.
• McDonald’s has recently introduced McDelivery setting Burger King a step behind as well as not being open 24/7 causes Burger King to loose potential late customers.

Availability of Substitute Products Competitors may be selling a product which is different to what the business is selling but it satisfies the same
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• Customers have become more health conscious thus moving away from fast foods but McDonald’s has introduced healthier options such as fruit juice, salads, vegetables and wraps. • Burger King offers products such as sandwiches which replaces all your fast food burgers.
• McDonald’s has an advantage as they offer vegetarian burgers as substitute which Burger King doesn’t offer.
Threat of New Entrances in the Market Current competitors are a threat to the existing business but new and future competitors need to be given attention as they are potential threats. • McDonalds has become such a well know brand and has expanded internationally with over 36,000 stores and this any new/potential business will have to spend a large amount of advertising as well as developing their stores to get to the same level of this brand.
• Potential businesses will give McDonalds competition locally as low switching cost will attract customers. • Burger King is relativity new on S.A. and still is a threat to McDonalds but for new entrances they’ll face an economic challenge as Burger King has a strong brand
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