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 through the SWOT analysis method.
One of Burger King’s most important strengths is its strong market position. It is the second largest fast food chain in the world, trailing McDonald’s. There are 11,550 stores in 71 different countries. Its geographic diversification is a competitive advantage. Burger King’s slogan, “HAVE IT YOUR WAY,” and its’ famous “WHOPPER” brand are very recognized by all consumers. These two campaigns were created in the 70s and have stuck around ever since. Talking some numbers, between 2006 and 2008, the chain’s profitability increased from $170 million to $354 million. In 2010, $2.5 billion was expected to be made and Burger King was able to reach just those projections.
Another strength is Burger King’s franchise development having 90% of its restaurants franchised. The franchise concept allowed the company to grow with minimal capital expenditure and receive royalties and fees. Burger King went above and beyond and created a new model of its restaurant to attract mo...
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...to appeal to that specific age range since it is limited in this country.
Now that we know what the problem is, we are able to examine various options to fix the problem. The first and foremost approach Burger King can engage in is differentiation. They need to bring variety to their menu and include a plethora of healthy options. Obesity is rapidly growing especially within the United States, as well as, the amount of fast food chains. Burger King can set themselves aside from other chains by providing those healthy, yet delicious menu choices. For example, Burger King can introduce a children’s meal that provides a choice of fruit as their side and a healthy drink such as apple, orange, or pineapple juice. This would be appeal to parents of young children, especially when parents are in a big rush and look to fast-food restaurants for quick food fix.
Despite the economically uncertainty Pret A Manger keeps on thriving in the U.S. fast food market. It’s growing fast, with huge success. Pret is proving to the world its a big threat in the sandwich industry. In 2011, U.S. sales up 40% from the year before, “the company’s overall profits grew by 37% in 2010, and annual workforce turnover is only 60%, compared to fast food industry averages of 300-400%.” (Smart Advantage)
There are hundreds of thousands of Burger Kings across the United States, and they all have cheap food. For one person, Burger King can cost as low as a dollar before taxes if that person eats off of the dollar menu. However, since the food is so cheap, it is not as good quality. It also does not taste as good as more quality food. Instead, the meat is a low grade and often contains fillers to lower the price of the meat (Sporleder and Goldsmith). The staff is often paid a very low wage, and they are not very friendly. The restaurant offers a cheap fast food joint atmosphere, followed by an aroma of French fries, fryers, and grease. Burger King, like many fast food restaurants, has meals that appeal to children, along with play rooms kids can have fun in. This is so they can appeal more to families, generating more
In “Fast Food and Intergenerational Commensality in Japan: New Styles and Old Patterns,” John W. Traphagan and L. Keith Brown employs ethnographic observation to analyze Japanese reception to the prevalence of McDonald’s in Japan, taking into account the subjects’ and informants’ ethnic backgrounds and cultural contexts. Critics maintain that the invasion of McDonald’s poses as a threat to the traditional dining patterns in Japan; however, few of them attempt to examine the underlying reasons of Japanese diners’ attraction towards McDonald’s. The authors argue that, rather than bluntly intruding the Japanese culture, McDonald’s naturally gain popularity amongst the local customers because of its exemplification of the deep-rooted Japanese values of commensality.
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers. With each generation that passes, brings fast food chains into more homes and continues impacting lives.
However, when creating fast food restaurants, the industries were not thinking about the negative effects such as obesity. Other than obesity, other harmful effects exist as well. Fast food restaurants serve unhealthy products such as greasy foods and artificial meat that lead to dietary health issues in many adults and children. A recent study showed that “Young children who are fed processed, nutrient-poor foods are likely to become unhealthy teenagers, and eventually unhealthy adults. Now twenty-three percent of teens in the U.S. are pre-diabetic or diabetic, 22% have high or borderline high LDL cholesterol levels, and 14% have hypertension or prehypertension”
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
Since the fast food industry is targeting America’s youth, providing healthier options on children’s menus will reduce the rate of childhood obesity and allow for a healthy future.
Burger King adds value through the good quality products served. What the customers perceives is what the customer gets and sometimes more than what the custome...
Fast food restaurants are popular among the consumers nowadays. Many fast food restaurants are trying to serve the needs in the market as people seek for quick and convenient place to eat. Due to the fact that there are a huge amount of fast food chains available in the global market, fast food companies have to strive for success. Just by providing quick and convenient style of eating for the customers is not sufficient to stay competitive. This is why it is interesting to study and learn about a fast food company that stands out in such a competitive environment. What has KFC China been doing to become successful? What marketing strategies did they use to dominate the market? We shall find out in the following sections.
...us of McDonald’s also seem in other predominant countries. Germany’s beer, France’s croissant, Spain’s gazpacho, and Indonesia’s rice porridge and fried chicken. Proposing creative yet innovative menu is essential for fast food firms in order to survive in the market share war.
Innovation is an important aspect of business today. It is important for companies to be innovative in order to stay competitive with their competitors. Innovation can come in different forms depends on the company’s objective. KFC, one of the most popular fast-food restaurants by the Yum! Brands, chooses to be innovative for their business model. Although, there is a huge amount of fast food chain available in the global market, KFC found the key to stand out from the intense competitive environment. By expanding the business to China, KFC learned unprecedented success by being different, not by being the same. The company’s business model is all about adapting to the local culture and understanding the needs of the Chinese market. Three main innovative strategies of KFC in China are localizing the menu, understanding the Chinese culture, and hiring local management.
When researching McDonald’s through online sources, it is clear that nutrition is a major concern of the public visiting the fast-food chain. Secondary research conducted shows that there are several case studies and other secondary source searches around the same topic. McDonald’s has often been the center of nutritional attention within the fast-food industry. Secondary research shows that the restaurant has recently made changes to the American Happy Meal to reduce the amount of French fries offered and replace the portion with fruit (Strom, 2011). In a study conducted by McDonald’s a secondary source reports the meal cuts calories by 20% for the children’s meal (Strom, 2011). This is a critical move by the organization on children’s obesity is currently a hot topic within food chains and attention is driven by the Obama administration. Secondary research also shows that although the public has major health concerns with the food chain, profits are increasing during a high point of an economic recession (Dahan & Gittens, 2008). Acco...
CHANGING PREFRECE depended vastly on the fast food manus. For example we can mention about SALAD. Now salad was never considered as a part of fast food menu. But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald have introduced SALAD into their menus. This preference is not stopping only with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and chan...
· Burger King Corp. that offers an array of value-priced offerings and makes kitchen and drive through upgrades
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...