1

North South University

Bangladesh
Department of Marketing and International Business
Country report on:
Colombia

Case study on:

Course: International Business (INB372)

Instructor: Mr. Shadman Sahir Ahmed (SSA1)
Section: 17
Semester: Fall 2019
Date of submission: 27th December, 2019
Group Members and ID
Sayed Hassan Saffat 1813215630
Fardin Haque 1811658630
Sayed Nafis Faiaz 1822094630
R.K.M. Ahnaf Ud Doula 1812487630
Sajedur Rahman 1612153030
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INDEX

Serial no. Contents Page no.

Introduction
1 3

Locations & Resources

2 5

Economic Integration
3 8

All about culture!

4 14

Overall Attractiveness
5 17

The Entry Decision

6 19

Case Study: Burger King

7 23

References
8 24
 3

Introduction
Colombia, the nation of Northwest South America, formally the Republic of Colombia.
In the northern Andes Mountains, the national capital of Bogotá is built on the high plateau. The
Peso is the currency of Colombia. The official Peso symbol is $.

Colombia consists of 4 towns with a population of over one million, 36 towns with
100,000 to 1 million, and 265 towns with 10,000 to 100,000 inhabitants.

Colombia's Most Populous Cities:

• Bogota is Colombia's biggest city and capital. The city is a center of government, trade,
tourism, banking, sports, and culture.
• Medellín is the second biggest municipality and Colombia is the capital city of Antioquia.
The city is in the Abura Valley.
• Santiago de Cali is the capital of the department of Velle Del Cauca, with a population of
approximately 3.4 million. Cali is Colombia's only Pacific open city.
• Cartagena is Colombia's largest industrial city and one of the largest ports of the world.
Cartagena is the number one city in all of America for its foreign direct investment
policy.
• The Magnet has created hundreds of jobs in the coastal town, for foreign direct
investments.

Colombia is a republic under the constitution of 1991 whose public powers are divided amon
g the executive, the legislature and the judiciary.
The President is elected by universal suffrage and may serve up to two consecutive four-
year terms. Iván Duque Marquez, who took office on August 7, 2018, is the current President.

Colombia has a pro-market economic system that provides free prices of goods and services.
The economy is dominated by private enterprise and the direct participation of the government is
limited to sectors like rail, oil, and telecommunications.

One of the main features of countries under civil law is that their legal systems do not accept
legal principles as part of their governing institutions, which means that the rulings of the Court
are only binding on the parties concerned, and not on all.
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The Colombian HDI was up from 0.600 in 1990 to 0.761, which reflects a 26.9% rise
between 1990 and 2018. The lifespan expectancy of Colombia at birth grew by 7.4 years and the
total number of school years increased by 2.9.

Colombia's GDP increased by 0.6% compared to the previous quarter in the third quarter of
2019. Colombia has a per capita GDP of $1,432 less than last year's duration of $1,453. per
capita for a quarter. In the near future, the GDP growth of Colombia is expected to reach 3,749%
in Dec 2024.

Quarterly GDP at market prices 2019 & trend in the last five years:

Date Quarterly Quat. GDP Quat. GDP Date GDP per GDP P.C.
GDP Growth (%) Annual Growth capita Annual Growth
(%)
2018 6,642$ 5.0%
2019Q3 79,347M.$ 0.6% 3.3%
2017 6,325$ 9.1%
2019Q2 80,818M.$ 1.3% 3.4%
2016 5,800$ -4.8%
2019Q1 81,667M.$ 0.9% 2.8%
2015 6,089$ -23.9%

2014 7,999$ -1.3%

Colombia received 36 out of 100 points from the 2018 Transparency International
Corruption Perception Index. Colombia's Corruption Index was 34.71 between 1995 and 2018 at
an all-time level of 40% in 2005 and 22% in 1998.
 5

Locations & Resources

The nation is bordered by the two water systems of Panama, to the northeast by
Venezuela and to the east by Brazilian and to the south by Peru and Ecuad or. The waters of the
Caribbean Sea soak its 1,000 (1,600 km) coast to the north and the Pacific Ocean washes its 800
(1,300 km) coast to the west. Colombia is the only nation in the region with coasts on the Pacific
Ocean and the Caribbean Sea situated in the north-eastern corner of South America. The
Equator's position produces a remarkable variety of climate, vegetation, soils and crops.
Additionally, the Pacific and Atlantic Oceans ' ports make the country a strategic place to work.
Colombia is short of it and needs to be improved in certain regions. While Colombia has been
surpassed as the biggest producer of cocaine by Peru, the drug trade is living and strong.

Top 5 local Colombian companies:

• Ecopetrol: Ecopetrol is Colombia's largest oil company, one of Latin America's biggest
and one of the world's 25 largest oil companies.
Income Statement (Quarterly): Q3 2019 (Billions COP)
- Revenue: 18,014.27
- Net Income: 3,011.00
• Bancolombia: With over 900 branches and 30,000 employees, Bancolombia is the largest
commercial bank in Colombia and also one the biggest in Latin America.
Income Statement (Quarterly): Q3 2019 (Billions COP)
- Revenue: 5,882.93
• Avianca: Avianca is the oldest and second oldest carrier in the Western Hemisphere.
Avianca is also a brand of seven Latin American airlines that provide the largest
destination network on the continent.
Income Statement (Quarterly): Q3 2019 (Billions COP)
- Revenue: 1,202.56
- Net Income: - 48.62
 6

• Grupo Aval: Aval Group is a holding firm engaged in a wide range of financial activities,
which also owns shares of several of the largest companies in Colombia.
Income Statement (Quarterly): Q3 2019 (Billions COP)
- Revenue: 8,930.13
- Net Income: 743.20
• Tecnoglass: Tecnoglass manufactures architectural glass and mirrors, including filtered,
transparent, silk-screened and curved glass, based in Barranquilla. It sold nearly all its
goods and more than 300 clients throughout the Americas.
Income Statement (Quarterly): Q3 2019 (Billions COP)
- Revenue: 108.47
- Net Income: - 1.18

Top 5 foreign companies located in Colombia:

Over the past five years, about 200 international companies started their businesses in the
region, constructing new plants, firms, and subsidiaries. Newcomers like Facebook and Chilean
hotel chain Atton; Japanese Furukawa company opened a plant for optic fiber; A new motorcycle
assembly facility was launched in Cauca, Hero MotoCorp India.

Investors believe that market growth and new policies are some of the factors for
investing in Colombia, which helped the country to cope with crises and which enjoy annual
growth of 4%-5%. The country has key strategic position, skilled human capital, strong tourism,
financial and corporate services, BPO industry, and agribusiness sectors. Foreign companies
have also arrived via franchises, private transactions or local purchases, Including:

• Starbucks chain (U.S.A.)

• Itaú Bank (Brazil)

• Axa Seguros (France)

• Ripley (Chile)

• Jerónimo Martins (Portugal)

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There are plentiful non-renewable resources in Colombia, including gold, coal and
petroleum. The rich agricultural lands and its rivers are its renewable resources.
Gold deposits, especially in the western central area, was significant from the colonial era.
Many regions also include silver and platinum in gold-bearing gravels. In the Magdalena and
Catatumbo valleys, the oil reserves were used for a long time and large new fields appeared in
the Llanos.
The hydropower capacity of Colombia is greater and about three fourths of the nation's
power is provided by hydro power plants. The mountainous nature Colombia enables the growth
of an extraordinary vast number of tropical and temperate cultivations ranging from bananas and
sugarcane to wheat, barley and potatoes.
Coffee has been the backbone of the Colombian economy for a long time and has carried
premium prices on the world market with nearly half the legal exports. Traditionally Colombian
coffee was grown under nitrogen fixing leguminous shade trees, but the plants were gradually
planted in open sunlight with the introduction of the high-yielding caturra.
 8

Economic Integration
• Colombia’s biggest ally and why:

After independence from Spain, the United States formed diplomatic relations with Colombia
in 1822. Colombia is a middle-income country and one of Latin America's oldest democracies. The
United States and Colombia share a determination to promote stability, development and democratic
governance in Colombia and across the Western Hemisphere. With the help of the United States, over
the last 20 years, Colombia has transformed itself from a fragile state to a vibrant democracy with an
increasing market-oriented economy. In 2016, the Government of Colombia reached a peace
agreement with the Revolutionary Armed Forces of Colombia (FARC) to put an end to more than half
a century of war. The United States strongly supports Colombia's efforts to ensure the just and lasting
peace that the people of Colombia deserve and to make the promise of security and economic
opportunity a reality for the citizens of Colombia.
The United States is committed to working with Colombia to dismantle transnational criminal
organizations whose operations, in particular drug trafficking, are detrimental to the people of
Colombia and the United States. Their programs concentrate on enhancing licit economic
opportunities; building and upgrading key infrastructure; and combating criminal activities, including
drug production. Their cooperation involves collaboration on research, cultural and sport exchange
programs as well as on social inclusion initiatives affecting African descendants and indigenous groups
in both countries.

The US government supports Colombian efforts in the conflict transition towards peace by
operating in Colombia's most challenging and ignored rural areas, where there have been recent
converging violence, the lack of the government and the lack of legal economic opportunities. U.S.
programs include funding Colombian government initiatives: introducing land reforms in Colombia;
helping and protecting vulnerable populations; growing educational opportunities; investing in private
and public resources; rehabilitating former fighters; and respect for human rights, social integration
and the rule of law.
 9

• Colombia’s primary export/import and to which country:

The international trade in Colombia represented 34.9% of Colombia's GDP in 2017. Over
the last ten years, foreign trade has risen five times in the region. It makes Colombia's economy
the 53rd most complex in the world, according to the Economy Complexity Index (ECI). The
growth of international trade is due in part to the many trade relations with other countries. The
free trade between Colombia and the USA in 2012 saw a major trade increase with North
America. That same year, Colombia and Chile, Mexico and Peru formed the Pacific Alliance.
The aim was to establish commercial ties with emerging Asian markets in Latin America.
The United States, China, Germany, the Netherlands and neighboring Mexica, Brazil, and Panam
a are now Colombia's main trading partners.

• Top Colombia Exports

Colombia is the world's fiftieth biggest exporter. Colombia exported $41.8 billion worth of good
s worldwide in 2018. It is a 10.6% increase compared to the previous year. In North America, the
bulk of exports were offered, followed by Latin America, Europe, Africa, then Asia and
Australia.
The following are Colombia’s top 10 export commodities.

1. Crude Petroleum and Coal Briquettes

2. Coffee and Spices
3. Gems and Precious metals
4. Plastics
5. Live Trees and Cut Flowers
6. Fruits and Nuts
7. Steel and Iron
8. Vehicles
9. Waxes and Animal and Vegetable Oils
10. Sugar and Confectionaries
 10

• Top Colombia Imports

A total of $51.2 trillion was imported from Colombia in 2018. This has been 11.2% highe
r than in 2017. The North and Asian countries each received roughly one third of their total impo
rts, led by European, Latin American, and African exporters.

Listed below are Colombia’s top ten commodity imports.

1. Machinery and Computers

2. Other Electronics
3. Automobiles
4. Refine fuels
5. Plastic products
6. Pharmaceuticals
7. Organic Chemicals
8. Iron and Steel
9. Cereals and grains
10. Medical and other Technical equipment

• Colombia and Trade Blocs

Colombia has been a member of the Andean Community since 1969, a free trade
agreement with Bolivia, Ecuador and Peru. In April 2011, Venezuela left the Andean
Community. In 2011 and in October 2012 a new framework for promoting limited trade ties was
negotiated. For Mercosur (Brazil, Argentina, Paraguay and Uruguay), the Andean Group signed
in 2005 a free trade deal.
The government of President Santos has vigorously pursued trade liberalization
initiatives. The FTA between Colombia and the United States came into force on 15 May 2012.
Colombia has numerous FTAs with different countries or bodies, including El Salvador,
Guatemala and Honduras, Canada, Mexico, Chile, the European Free Trade Association (EFTA)
and members of the European Union. In February 2013 the Colombia FTA had been signed by
South Korea; in May 2013 Costa Rica; in June 2013 by Panama and in September 2013 by
Israel. These FTAs are not yet in place.
 11

Colombia also has bilateral investment agreements (BITs) with Switzerland, Peru, and
Spain to promote trade and investment, and has included investment protection chapters in FTAs
with Chile, Mexico, Canada, EFTA nations, El Salvador, Honduras, Guatemala and the United
States. Investment protection chapters have been included. Certain BITs with China, India and
the United Kingdom were negotiated.

• Advantages to Colombia due to trade blocs

1. As trade barriers collapse, producers compete directly in various countries. That pushes them
to be more competitive so that their market share is retained or increasing.
2. For customers, this is a good deal, as foreign products are becoming more available and cheaper.
3. Competition lowers prices, allowing consumers to buy products with better quality their
money. As prices fall, Consumers buy more, boosting the economy.
4. Different countries have different assets, such as trained staff, access to raw materials or
plenty of agricultural land. A trading bloc partner will concentrate on what it does best in
realizing that it can market its goods to other countries.
5. Specialization allows large enterprises to build economies of scale which increase their ef
ficiency.
6. Trade and sales growth will contribute to employment growth.

• What does Colombia have to offer to its partners

1. Lower income tax in comparison to companies in the National Customs Territory (TNA)
While in the free trade zones it’s 20%, it’s 34% in the rest of Colombia.
2. No VAT or tariffs on goods imported from the free trade zones.
3. No VAT on raw materials sold from anywhere in Colombia to partners of the free trade
zones.
4. Companies in the free trade zones can conduct their business without any requirements to
make customs declarations.
5. Goods sold in any part of Colombia only ensue VAT on the imported inputs.
 12

• Other trade benefits to Colombia’s partners

1. Crude Petroleum and Coal Briquettes
2. Coffee and Spices
3. Gems and Precious metals
4. Plastics
5. Live Trees and Cut Flowers
6. Fruits and Nuts
7. Steel and Iron
8. Vehicles
9. Waxes and Animal and Vegetable Oils
10. Sugar and Confectionaries

• Economic Integration level in the Andean Community

The Andean Community, which Colombia is a part of, is primarily a free trade area
(FTA). A trade bloc of four nations is the Andean Community-Bolivia, Colombia, Ecuador and
Peru. Participating Countries include Chile, Argentina, Brazil, Paraguay, Uruguay and Panama,
Mexico and Spain. CAN's head office is in Lima, Peru. For the period 2011–2012, Colombia
took over the Pro-Tempore Presidency of the CAN.
The Trujillo Treaty designated the Agreement the Andes in 1996. The Board of the
Cartagena Agreement was also turned into the General Secretariat in Lima, Peru, with not only
political but also technical responsibilities giving the integration process a new political
direction. The Andean Passport was established in 2001, which permits citizens of Member
States to travel without a visa between countries. The unification of the Latin American and
Caribbean areas took precedence on the Andean Community's agenda in 2005. Since Peru was
fully incorporated, the Andean Free Trade Area came into effect in 2006.

The following issues are addressed by the CAN community:

• Trade in Goods
• Trade in Services
• Customs Union
• Circulation of Persons
 13

• Common Market
• Common Foreign Policy
• Border Development
• Social Agenda
• Sustainable Development
 14

All about culture!

Language
Majority of Colombians, approximately 99.2% use Spanish as their native language. Despite
such overwhelming a total of 101 languages exist in Colombia, namely Creole and Palenquero.
Some commonly used phrases in Colombia can be listed as follows:

• Buenos días, Estela! - Good morning, Estela!

• ¿Qué pasa – What’s going on?
• Hola – Hello!

Cuisine
Columbians take pride in their culinary tradition. The typical Colombian cuisine is a blend of
the culinary ethnicities of the six main regions within the country which are the Pacific,
Amazonian, Andean, Orinoco, Caribbean, and Insular. As a result, Colombian cuisine exhibits
diversity regionally. The influence of Indigenous Colombian, Spanish, and African cuisines, with
slight Arab influence in some regions is also evident in their served delicacies. The fact that
Columbia is one of the most biodiverse countries in the world, adds the widest variety of
available ingredients in the region. Some of their famous dishes that have attracted global
attention can be listed as follows:
• Sancocho: A delicious hot stew consisting of the ingredients: meat, plantain, cassava (a
root plant used in cooking all over Latin America), coriander, sweetcorn and potatoes is
one of Columbia’s most famous delicacies.
• Fritanga: This delicacy is a platter of grilled meats served with potatoes, one of the most
used ingredients in Columbia.
 15

Music
Columbian music has produced some of the gems of modern music industry. Like the
country itself, the representatives of the music of Colombia express the Colombian culture,
music genres, both traditional and modern in their compositions. The music of the country
describes each geographic regions of Colombia as it has picked up different components from
different regions and captured the Columbian spirit of art. It has a vibrant collage of talent that
touches a full spectrum of rhythms ranging from Pop music and Classical music to Salsa and
Rock music. Some famous singers that have attained global recognition are:

Shakira Juanes

Festivals and Holidays

The Cali's Fair (Dec. 25 - 30) is an event that has great significance in Cali, Colombia.
This celebration is held for the identity of the region and ethnicity and is famous for the Salsa
marathon, horse riding parades, and dance parties.

The Flowers Festival (Feria de las Flores) this festival that occurs in
Meddilin,Colombia. The festival holds great significance for the city and includes pageant,
automobiles, a parade and many concerts.

Here’s a fun fact, it is believed in Colombian tradition that if you eat 12 grapes at the eve
of new year these grapes will grant you 12 wishes.
 16

Helpful tips for the tourists

• You should haggle

• Watch your drink
• Don’t do cocaine or any drugs
• Try the local dishes
• Have the best coffee in the world

Before visiting

• Download the taxi apps

• Use taxi at nights
• Try to avoid coming during festive seasons
• Don’t fall for fake police
• It’s not cheap

Hofstede’s Dimension
• Power Distance: Colombia scores 67 on the scale of the PDI, this society believes
inequalities amongst people are normal.
• Individualism: Colombians are collectivistic society, Colombians form groups and
support the group’s opinion which is very important.
• Uncertainty Avoidance: Colombia is a high uncertainty avoidance country, in order to
maintain harmony and to save face.
 17

Overall Attractiveness

In recent years, Columbia is giving a lot of emphasis on developing Business Environment

and culture. They are focusing on different ways to achieve a stable and solvent economy, which
has attracted a lot of Foreign Direct Investment (FDI). This has developed goodwill for
Columbia among investors. Columbia is the third most preferred country among all Latin
American countries according to World Bank business’s Doing Business Survey.

Due to this business suitable environment, Columbia has good flow of FDI. In 2018, it was
11.010 US Billion Dollars.

The factors that make Columbia for suitable for business are:

• An active economy in global market

• Interconnected with world
• Skilled labor
• A country striving for innovation
• Competitive legal framework
• The government’s commitment to development
• Attractive business environment

Reliable local partners and suppliers.

 18

Why Is Columbia So Attractive For FDI?

• The stable Columbian economy and political stability brings a steady growth creating a
business-friendly environment.
• Has a lot of natural resources like gold, oil, coffee, etc.
• Skilled workforce
• A booming tourism
• free trade agreements
• geographical position giving strategic access to different markets
• Improved infrastructure.
• Consumer market of 50 million people
• Increase in standard of living and purchasing power
• Stable banking and financial system

Risks

• Underground economy and security threats which includes: guerrillas, drug traffickers
and rebel groups.
• poor intellectual property rights.
• The large-scale informal sector
• The economy is not very diverse
• Dependent on product prices
• Often influenced by U.S economy
• Many Columbian corporations avoid taxes.
• Lack of transparency political and legal sectors
 19

The Entry Decision

Is Columbia a Viable Location to Invest?

Colombia follows all of an emerging market economy’s requirement. The GDP per capita
remains well below the developed-country level at $7,992.80 as of 2015, but ranks much higher
than most of its developing-world peers. The 2014 HDI was 0.711; again, low, but not far away,
for a developed country. The nation still has a long way to go in terms of employment, health
care and quality of life. Nonetheless, over the years, in these places, Colombia has made
improvements in accordance with its economic growth.

As an emerging market country, Colombia's primary predictor is its strong economic growth
pace, which hovers at 4.5 % per year and is expected to remain at that point until at least 2018.

Suitable Sectors to Invest In…

 20

Preferable Mode of Entry

Acquisition can be a preferable mode of entry in Columbia. Mergers and acquisitions are
way easy to execute. It can provide several competitive advantages in countries like Columbia.
The help from local partners can play a vital role in penetrating the desired market.

• Easier to execute
• Risk distribution
• Acquiring assets rather than building
• Pre-established supply chain network
• Better understanding of consumer market
• Elimination of competition

Market Entry Strategy

• Ensure a Colombian agent, representative, or dealer needing a contract that complies with
the requirements of the Colombian Commercial Code.
• Proper analysis of partner and Columbian market.
• Consumer satisfaction and after sales service
• Quality products in competitive price
• Supporting local partners marketing and advertisement strategies.

Take advantage of the closeness of Colombia to the United States and the number of flights
linking Colombia to all North American areas.
 21

BURGER KING

Burger King, the world-renowned fast food chain with its iconic ' Whopper ' grilled flame
sandwich, has captured the attention of foodies in Bangladesh. And the credit goes to Tiffin Box
Ltd for the first time in Bangladesh having successfully introduced Burger King Corporation
(brand) as a franchise affiliate. Tiffin Box Ltd.’s head of business operations, Mushroof Ahmed,
told The Independent: "Whopper is our signature burger, and the logo itself represents four
colors including white, red, brown and gold." Explaining the specific significance behind the
color pattern, Mushroof said lettuce leaves were depicted by green, tomato red, burger patty-like
brown, and burger bun-like gold. Mushroof said all the items were manufactured from abroad
except the burger bun.

The official of Tiffin Box Ltd said it was the biggest challenge in Bangladesh to build the
infrastructure of an international brand or chain store as everything had to be impeccable
according to the standards of the brand. "Our kitchen is completely transparent and easily visible
from the oven, making it easy for people to connect with our hygiene philosophy and high
standards," he added. On the cost of the goods, he said, "The price depends entirely on the
consistency, so on this front we don't even hesitate a little bit. So if you look at our simple beef
burger, it begins at a Tk.189 price which is reasonable." "We provide all sorts of technical
equipment and train our staff appropriately in order to provide our consumers with quality
products," he said. In December 2016, Burger King Bangladesh launched operations and has
since opened four outlets at Banani, Bashundhara, Uttara and Dhanmondi in Dhaka.

Burger King is following global standardization in setting their food menu and want to use their
global reputation to penetrate the market. They decided to target all kinds of customers from kids
to adult up to 60 years old. They gave a high emphasis on university students as their prime
customers. In their set of objectives, they had high quality food and wonderful experience,
maintain hygiene environment, ethical business conduct with proper employee satisfaction.

The political and legal challenges for Burger King were not too much as the government of
Bangladesh is very welcoming and accommodative to the foreign franchisees and local investors
have the willingness to invest. Bangladesh has many other internationally renowned brands like
KFC, Pizza Hut, Kenny Rogers and A&W. The market is also suitable having consumers who
are food lovers and tends to spend on it.
 22

But there is no way to deny the intense competition Burger King has in local market.
Maintaining international standards in a price competitive market like Bangladesh is real
challenge. Side by side it is often noticed that anything international successful and popular in
western or European countries does not always guarantee success in Asian countries like
Bangladesh.

Burger King came with high hopes and created quite hype during the initial stage but failed to
create an impact and capture the market properly. Bangladesh's franchising sector is promising,
given the industry's positive growth; franchisees are grappling with importing raw materials and
the unavailability of quality-needed local suppliers. It is also very strong enforcement and
regulatory costs. This leads in many local competitors making aggressive deals at lower prices.
Though as an international food chain, we find the local environment inspiring, and because of
its long-standing reputation, Burger King has a high brand recognition and is top in consumers '
minds.

As foreign franchises talk about entering the market in Banglad esh, there are conditions that will
allow them to further assimilate in the local environment. A common trade trick is to react to
local tastes to increase consumer familiarity. In addition to remaining relevant, franchises must
be distinguished. Tools such as focused marketing can help franchisors understand their target
segments ' needs and demands. Competitive pricing is the second tool to sustain differentiation.
Through delivering lucrative comprehensive products and the easy convenience of home
delivery, franchisees may hit their consumer base along with these requirements.

There are several reasons why burger king is not doing so good in Bangladesh. In fact, citizens in
Bangladesh are not too acquainted with the relative status of food chains on the international
market. We have seen Pizza Hut and KFC creating a lot of hype before but none of them did
good in the market. Though modestly successful Burger King because of its multi nationality and
a bit of promotion, can get traction in Bangladesh. Hence, they can charge premium for not-so-
tasty burgers. Many people hang around in Banani or Dhanmondi, there are much better places
with cheaper prices to have delish burgers (Grilled, Mad Chef, Take out, Preetom and American
Burger). According to many foreign visitors and food reviewers Burger King has failed to
maintain its overall food quality and experience.
 23

With this many competition and lack of price competitiveness, Burger king is facing a real
problem trying the capture the Bangladeshi fast food market. By analysing the current condition
of their market performance, we can understand that they had some problems with their entry
strategy and they failed to capture the Bangladeshi market. Burger King could have learned from
the mistakes of Pizza Hut and KFC but seeing them we can tell that they did not.

For an international food retailer, whose primary product is burgers and fries, we find that there
is no direct competition in the same segment and on our scale of operations but offering
numerous, innovative products to fuel year after year consumer anticipation. Though thirty
percent of Bangladesh's total population is young and enjoys a western standard of living and
health. Restaurants are social hubs where families go for a Sunday meal or meet mates for an
after-work lunch – this is how residents engage in fun and enjoy their leisure time. Burger King
still has hope. Firstly, it needs suitable menu that attracts local customers and needs to be price
competitive. Side by side it also requires aggressive marketing though online media like
Facebook, Instagram and YouTube like other local brands to gain consumer trust. Same tactics is
used by many local brands in Bangladesh.
 24

References
1. Colombia | History, Culture, & Facts, Retrieved 25th December, 2019 from
https://www.britannica.com/place/Colombia

2. Biggest Cities In Colombia, Retrieved 25th December, 2019 from

https://www.worldatlas.com/articles/biggest-cities-in-colombia.html

3. Colombia GDP | 2019 | Data | Chart | Calendar | Forecast | News, Retrieved 25th December,
2019 from
https://tradingeconomics.com/colombia/gdp

4. Colombia GDP - Gross Domestic Product 2019, Retrieved 25th December, 2019 from
https://countryeconomy.com/gdp/colombia

5. Local Colombian companies, Retrieved 25th December, 2019 from

https://bloomberg.com