Overcoming Internal Barriers

The “Burger Market” is still growing and being strong. People still want to purchase burgers.

The way that Burger King and other fast food restaurant chains do business and markets their products to consumers is due to the change in our society to where the consumer wants the biggest, fastest, and best product they can get for their money. This change in society can be attributed to a process known as McDonaldization. Although McDonaldization can be applied to many other parts of our society, this paper will focus on its impact on Burger King and Taco Bell restaurants. My belief is that the process of McDonaldization has lead our generations toward a more a much more efficient lifestyle, with much less quality. From my observations and studies of these fast food resturants, several themes have become

The barriers a Business must deal with, such as competitors, substitutes, customers, supplier, etc are often referred to as:

Both potential and existing competitors influence average industry profitability. The threat of new entrants is usually based on the market entry barriers. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents’ position (Porter, 1980b; Sanderson, 1998) The most common forms of entry barriers, except intrinsic physical or legal obstacles, are as follows:

Competitor analysis is a serious part of the organization therefore; Target must identify and address all issues pertaining to the business. Target must pinpoint the tangible competitors, and substitutes, evaluate opponents’ objectives, strategies, strengths and weaknesses, and opportunities and threats, and uncover what opponents Target should take on or stand clear of. Therefore, Target must analyze the company’s economic, sociocultural, technological, political, and future.

In fast-food corporate America In-N-Out Burger has always remained family-owned. It had no stockholders to respond to and was able to invest in maintaining high standards of quality. Unlike its competitors the chain, with 258 stores presently, is able to retain its constant growth in sales, even in times of recession.

Potential for new entrants - The primary prevention to entrance are higher barriers within industry with the threats of new entrants as competitors (Porter, 1998).

Thesis Statement: Although McDonald’s and Burger King are similar; they have evident differences in their advertising models, food and their commitment with the community.

There are a variety of barriers that an organization may face when entering into a particular market space. In the case of FireEye, the barriers they faced in the cyber security domain were incumbents in the market, like customers exhibiting cost sensitivity in switching from their existing service.

If we look at the fast food industry today there is room for success. Based on RNCOS’ new US Fast Food Market Outlook 2010, fast food industry growth rate is strong. Especially, hamburger sales growth is reported at the healthy rate of 4.6% in 2008. The market is expected to grow to cross the $170 billion marks by 2010.It is believed that due to the economic meltdown, fast food industry is benefiting from people being more prices conscious. People who were enjoying nice means at fancier restaurants are now turning their choice of means to more economical ways.

While McDonald’s and Burger King have fought over a percentage of the same market share, each company has a unique strategy with which they’ve approached the market. McDonald’s aims to deliver an inexpensive, standard, quality meal with high level of uniformity both in burger structure and in delivery times. Burger King also strives for an inexpensive, quality meal, but focuses on allowing the customer a degree of flexibility in the menu – a goal reflected in their long-time slogan, “Have it your way.” This difference results in distinct objectives for each restaurant that resonate

Michael Porter, an authority on competitive strategy, mentions five forces that the stronger each of these forces is, the more companies are limited in their ability to raise prices and earn greater profit. In carefully scanning it industry, the corporation must assess the importance to its success of each of the five forces. Now, we will analyses these five forces in the inner-city paint corporation. The first one is threat of new entrants which means newcomers to an existing industry. The new entrants typically bring new capacity, if the company wanted to resist the threat of new entrants. They must build an entry barrier which is an obstruction that makes it difficult for a

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.

• What measures could Burger King do to dethrone McDonald’s as well as hold off the challenge of a number of other chains that were growing in size and competitive power?