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.
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