Key Success Factors Within The Fast Food Industry

1194 Words5 Pages
Key Success Factors Within the fast food industry there are three key success factors that must be considered in order to obtain a competitive advantage in a generally saturated environment. It includes: 1) differentiation, providing 2) high value and 3) convenience. 1) As the fast food industry is becoming increasingly saturated on a global scale, it is especially important for competitors to differentiate in order to avoid directly competing with industry leaders such as McDonald’s. Many competitors such as Burger King and Wendy’s have traditionally competed directly with McDonald’s by offering similar product offerings and price-points. It is important to note that McDonald’s has already established its presence globally and utilized an extremely low-cost and efficient supply chain network concurrently with providing consumers with consistent products and services. Due to McDonald’s worldwide presence, it is extremely difficult for competitors to capture market share if similar menu-offerings are provided as these particular competitors would have to compete by offering lower price-points which is not economically feasible. Due to this fact, it is imperative for competitors to differentiate not necessarily by menu-offerings, but to differentiate by providing consumers with a unique dining experience on a consistent basis. Differentiation includes factors such as a unique organizational culture, cosmetic updates in outlets and most importantly, effective branding that aligns to the modern values and beliefs of everyday consumers. 2) Providing consumers with high value has been traditionally the key demand driver in the global fast food industry and continues to be consistently significant across regional barriers in every cat... ... middle of paper ... ... as Tim Horton’s is the leading fast food chain with a market share of 30.5% which also represents a significant portion of consumers who prefer Tim Horton’s coffee, Burger King should offer Tim Horton’s coffee as opposed to Seattle’s best coffee in its outlets to market specifically to the Canadian region. Alternatively in Asia, there is a growing trend for specialty cold drinks such as iced coffee (GCQ Mage) and due to this evidence, Burger King should consider modifying its drinks selection to not only account for this trend, but to further differentiate and obtain a sustainable competitive advantage. By focusing on value, quality and the global connection in the rejuvenation plan, Burger King will be able to address the key success factors of differentiation, high value and convenience simultaneously while providing consumers with a strong value proposition.

More about Key Success Factors Within The Fast Food Industry

Open Document