scribfree.com_burger-king

SELECTED COMPANY
BURGER KING
About Burger King
One of the second largest fast food chains in the world.
 Called "Insta Burger King" opened in 1954 in Florida.
Burger King has over 12,000 restaurants.
Burger King Restaurants are independent franchises.
Burger King’s slogan is “Have it your way”.

Products offered by Burger King
Hamburgers,
French fries,
Soft drinks, milkshakes and desserts,
Non-hamburger sandwiches,
New salad line,
BK Joe brand of coffee,
 Conform to regional tastes and
cultural or religious beliefs
Business Level Strategy of Burger King
Cost Leadership
Differentiation
Burger king
Integrated Cost
Leadership and
Differentiation
Focused Cost Leadership Focused Differentiation

Produce non standardized product
Oil that they use to fry their French fries.
Different way to cook their meat that gives

them a more grilled taste.
Product quality
 Guarantee customers receive the best quality.
 Emphasis on the quality of ingredients it uses

Differentiated features
Chicken Caesar salad.
Convenience of a sandwich
Fire-Grilled chicken
Focus on every details of production

The fatty parts of beef are “washed” .
 Burger King had already abandoned the use of ammonia in their
products.
Investing in developing new features

 Announced a $750 million, one-year investment
Investment will focus on four priorities:-
 Menu expansion.
 Marketing campaign.
Store Renovations.
and operations improvements.
Product or service design

Change in lighting and seating arrangements.
50% discount on the annual franchisee fee.
More on aggressive advertising techniques.
Product or service design
Increase the number of stores.

SWOT analysis of Burger King
Strength
Huge popular brand name and high brand loyalty.
Burgers that is typically not available in other fast food restaurant.
Product differentiation with large size.
Strong brand equity in fast food.
Weakness
High fat and high calorie food not good health conscious people for.
Franchise management.
Burger King does not advertise their products like their competitors.
Lesser international appeal.
SWOT analysis of Burger King
Opportunity
Introduce home delivery.
Open new branches and outlets.
Advertise more.
 Product improvement, tailoring it as per tastes of people around the world.
Threats
Threat from other eating joints/restaurants.
 Health concerns among general public.
Food costs are rising higher than standard inflation.
BCG Matrix Analysis of Burger King
High Market Growth
Question Mark Star

Burger King
Low Market Share High Market Share
Dog Cash Cow
Low Market Growth

BCG Matrix Analysis of Burger King
Why Burger king is in star?

High market share in fast food industry.
Second largest hamburger fast food chain in the world.
Sales promotion and advertising strategies.
High demand of products.
Porter's Five Factors Analysis of Burger king
 Threat of new entrants:-Barriers to entry

 Do not worry about the new entrants.
 This kind of risk is very low.
 The new entrants would not like to join and compete with Burger King .
 The bargaining power of buyers

 Added salad bars and some “light” menu for customers.
 Increase their customers’ power and become stronger.
 The bargaining power of suppliers

 Has more than 350 suppliers and distributors.
 Has high quality marketing communications services.
 Bargaining power of supplier is low.
 Threat of substitute products

 It is very easy for customers to choose the foods from McDonald’s, KFC and Wendy’s Burger.
 Threat of substitute products is high
 Burger king should increase their product line.
 Rivalry among competitors:

 Their biggest competitor is McDonald’s, Wendy’s International Inc. and Yum
Brands and Owner of Taco Bell.
 Burger King’s market shares are lesser than McDonald’s.
 Should increase their product differentiation level.

Some Suggestion for Burger King
√Open more branches.

√Low cost delivery system.
√Focus on the product quality.
√Control the location of the branch.
√Can follow integrated cost/differentiation strategy.
√Promotion and also the advertising.
√Product differentiation.
√Filter the population first to the target customer.

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SELECTED COMPANY

 Called "Insta Burger King" opened in 1954 in Florida.

Burger King has over 12,000 restaurants.

Burger King Restaurants are independent franchises.

Burger King’s slogan is “Have it your way”.

Focused Cost Leadership Focused Differentiation

Different way to cook their meat that gives

 Emphasis on the quality of ingredients it uses

Focus on every details of production

Investing in developing new features

Product or service design

Product or service design

Increase the number of stores.

Question Mark Star

Low Market Share High Market Share

Dog Cash Cow

Low Market Growth

Why Burger king is in star?

 Threat of new entrants:-Barriers to entry

 The bargaining power of buyers

 The bargaining power of suppliers

 Threat of substitute products

 Rivalry among competitors:

 Should increase their product differentiation level.

√Open more branches.

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