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BURGER KING Market Entry
BURGER KING Market Entry
1. Expand near its headquarters - Trends Analysis in Domestic market (consumption decreasing,
performance declining…) According to Rhee and Cheng, ‘Business wishing to begin international
expansion start with close and similar countries’ (2016). This is the case for BK. Indeed, BK
developed a presence in Latin America and Caribbean countries before entering places with a
much bigger population, such as China, Russia or South Africa, because BK’s headquarter is
located in Miami, also called “the capital of Latin America”. Indeed, many people from the Latin
American and Caribbean region have already come to Miami and they knew BK. So, it is easier
to gain brand recognition and acceptance in these countries. The nearness allows also BK
managers to visit these countries and for franchises to visit headquarter. Moreover, because
BK’s strategy is based on franchising, it is easier if suppliers and prospective franchises already
know the company. Finally, expanding into countries with a similar culture eases the process of
adapting the business to the new setting. These countries also serve as a point of reference for
future expansions, allowing for some trial and error experiments when it comes to managing an
international business.
Burger King, however, doesn’t usually adjust its menu to local tastes across all its international markets, just offering its standard
menu, and this strategy has stunted the company’s growth in some countries – especially the emerging mar- kets.
In Asia Western brands are trading successfully due to the local perception that the stores are more hygienic than the local chains
because health and cleanli- ness standards aren’t viewed as being enforced but foreign chains are thought to import their own
high hygiene stand- ards. However, while there’s always an initial excitement and kudos about try- ing Western menus, in the
longer term the majority of the population has more traditional tastes, so retailers benefit from offering tailored menu items; but
Burger King has trailed behind its rivals in this respect. For instance in Japan Burger King’s only ‘local’ item is Japanese beer,
but Mc- Donald’s, for example, has the Sakurater- itama burger that is made with Sakura sauce – McDonald’s’ success in these
regions shows that US-based chains can succeed with the right strategies.
well in both Germany and Turkey; Germany is its big- gest international market (for both turnover and store numbers) and
Turkey ranks seventh. In Germany, the company has positioned itself as providing higher quality food than McDonald’s.
In Turkey, Burger King has a good local franchise partner (Tab Gida) that knows the market well and has adjusted its strategies
accord- ingly – including the menu.
Burger King’s primary intensive growth strategy is market penetration. The goal of this intensive
strategy is to grow revenues from existing customers or markets where the firm already has
operations. For example, Burger King implements this intensive growth strategy by opening new
restaurants in its current markets to get a bigger market share.
Resources used
https://www.studocu.com/fr/document/neoma-business-school/international-business/bk-
questions/48875076
https://thestrategystory.com/blog/burger-king-swot-analysis/
(good swot analysis BUT it’s strategic planning tools not tactics)
https://ivypanda.com/essays/burger-king-beefs-up-global-operations/
https://www.qsrmagazine.com/fast-food/burger-king-braces-international-boom