Burger King Case Study

Burger King’s (BK) main specialty is their flamed broiled burgers. BK is one of the most popular and largest fast food chains around the world and they are well known for the way they cook their burgers more so than other fast foods chains. From the beginning, BK has grilled their burgers over an open flame and this has become a popular choice for many because it has a different taste than other fast food burgers that are fried. This unique way of grilling burgers has made BK the “largest flamed-broiled fast food restaurant’. (Daniels, et al., 2009). Burger King’s strategy against competitors were making a signature burger, which is the Whopper, and encouraging consumers to have their burgers prepared any way they want and like it. This quickly became the popular ‘Have it your way” theme for BK which help to give them a competitive advantage.

From the very beginning, Burger King set themselves apart from other fast food chains by being the first to offer burgers that were prepared differently th an their competition. The company started out with an insta-broiler in order to give their burgers a better taste. As they sorted out franchise issues and obtained rights to the company, they changed the name, became more established and grew into a fast food restaurant chain. As they continued to grow, they created a burger called the ‘Whopper’ which is known as their signature burger today. Between the whopper and the option to have it prepared the way you like it, have become an added value to the company. Expanding internationally and being a late entrant behind competition has its advantages and disadvantages.

One of the advantages for Burge King is being able to find the best location based on the highest demand for fast food because early entrants will have already established the foundation for business. Also, BK will be able to avoid initial startup costs and promote their logos and products. The disadvantage to being a late entrant is a risk of working with a limited amount of suppliers. This may cause issues with getting necessary goods or equipment that is needed to properly run the business. With Burger King entering other countries, there will always be faced with some advantages and disadvantages. They will have the advantage of gaining more capital and increasing revenue and the company will become a more popular fast food restaurant.

They will also have the advantage of having more advertising campaigns that will also contribute to their sales and popularity. Some of the disadvantages they may face will be competition with local restaurants who caters more to the culture and what they are accustomed to. There is also a chance of incurring a higher cost in food and certain regulations by the government on the food. I feel that the relationship the American region should change because the change will increase the prospects of expanding and growing and this will allow BK to be recognized and known by suppliers and other franchises. Also, if there is change it will allow BK to build and operate in other locations where there is a high demand for fast food chains. Opening up more restaurants in countries where there are many shopping centers and have a large number of younger people is a smart move for Burger King and will be very beneficial for business.

Reason being is because younger children, teens, and young adults are primarily the ones who frequent the shopping malls and will spend money on fast foods. Not to mention, areas where there are a lot of shopping centers, will not only bring in opportunities for growth but also a lot business from locals and visitors and having a popular fast food chain within the vicinity will definitely be profitable for BK. The Burger King headquarters is located in Miami, Florida and because Miami is frequented by many Latin Americans and people from the Caribbean, this has made a huge impact on international expansion because the space and ability to grown is limited in Miami. With BK expanding internationally, it has provided the company with more opportunities for investment. The Miami location has definitely made their competitive position weaker because their focus continued to stay on America which was a competitive disadvantage.

As CEO, I would definitely focus on expanding in locations where the market has the most advantages and countries where I can establish and develop a good relationship with local suppliers so that the company can possibly avoid having to deal with limited suppliers and higher cost of food. I would also find out when would be the best time to enter into new markets and whether we should be an early or late entrant. Another strategy I would use is evaluating and comparing locations where the company is most successful and apply the same principles when choosing future locations. I feel that the case implies that even though Burger King had to overcome many disadvantages, still the biggest challenge they still face is continuing to expand and what location will keep them at a competitive advantage and keep their brand alive.

Sources:
Daniels, J., Radenbaugh, L., & Sullivan, D. (2011). Burger King Beefs Up Global Operations. International Business, 13th ed. (pp 465-470). Upper Saddle, NJ: Prentice Hall.

Farfan, B. (n.d.). Burger King Mission Statement – Vision for Food, Speed, and Customer Experience. About.com Retail Industry. Retrieved May 12, 2014, from http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Burger-King-Mission-Statement.htm

Daszkowski, D. (n.d.). Burger King Franchise Review. About.com Franchises. Retrieved May 12, 2014, from http://franchises.about.com/od/fastfoo1/fr/burger-king.htm

Burger King, Strategy & Vision. (2012, January 1). . Retrieved May 13, 2014, from http://investor.bk.com/burgerking/web/conteudo_en.asp?idioma=1&conta=44&tipo=43566

Daszkowski, D. (n.d.). History of Burger King. About.com Franchises. Retrieved May 13, 2014, from http://franchises.about.com/od/mostpopularfranchises/a/history-of-burger-king.htm