BURGER KING

SELECTED COMPANY

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 Kings 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
Focused Cost Leadership Focused Differentiation
Integrated Cost
Leadership and
Differentiation
Business Level Strategy of Burger King



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
Business Level Strategy of Burger King



Differentiated features


Chicken Caesar salad.









Business Level Strategy of Burger King



Differentiated features

Convenience of a sandwich









Business Level Strategy of Burger King



Differentiated features


Fire-Grilled chicken

Business Level Strategy of Burger King

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.
Business Level Strategy of Burger King




Product or service design
Change in lighting and seating arrangements.

50% discount on the annual franchisee fee.

More on aggressive advertising techniques.





Business Level Strategy of Burger King




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











Question Mark





Star
Burger King

Dog

Cash Cow

High Market Growth
Low Market Share High Market Share
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.
Porter's Five Factors Analysis of Burger king


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 McDonalds, KFC and Wendys Burger.
Threat of substitute products is high
Burger king should increase their product line.
Porter's Five Factors Analysis of Burger king


Rivalry among competitors:

Their biggest competitor is McDonalds, Wendys International Inc. and Yum
Brands and Owner of Taco Bell.

Burger Kings market shares are lesser than McDonalds.

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.