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Burger King's Strategy

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by

Julien Stormme

on 15 December 2014

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Transcript of Burger King's Strategy

- Founded in Miami in 1954

- Acquired by Capital 3G in 2010

- Acquisition of Tim Horton in 2014

- Vision & Mission :
To be the most profitable QSR through a strong franchise system and great people, serving the best burgers in the world
Burger King background
Fully-franchised model
Advantages :
Disadvantages :
- Costs decrease
- Margin increase
- Royalties
- Don't bother with the different legal specification within countries
- International expansion
- Allows the firm to concentrate on menu innovation and brand

- Limited control over the franchises' operations
- Delayed perception of revenues
- Costs of training and assistance provided to franchises
- In time of crisis, royalties rates can be reduced
- Hard to distinguish good and bad partners
- The impact of franchises bad decisions

BURGER KING's STRATEGY
BENDJAMA Réda
BOULAKHRIF Farisse
CORSIN Dorian
HAGE CHEHADE Mohamed
STORMME Julien
Created by :
The Front Stage
The Backstage
Key Numbers
PESTEL
VRIN
The brand is our biggest force and is valuable. However franchises despite their advantages, are not valuable

=> Cost based competition
TOWS
5 Forces Of Porter
Threat Of New Competitors
Increased by : + Globalized world

Decreased by : - Saturated industry and low growth
- Best geographical locations taken
- Loyalty of customers

Bargaining Power of Suppliers
Increased by : + Common goods

Decreased by : - Backward Integration

Bargaining Power of Customers
Increased by : + Low switching costs

Decreased by : - Non-negotiable Standardized prices
- No improvement requests possible


Competitive Rivalry
Increased by : Price based competition
Increased by : + Other ways to fulfill this need
+ Healthier substitutes

Decreased by : - Unique flame grilled burgers
LOW
AVERAGE
Threat Of Substitutes
LOW
HIGH
HIGH
Yip's drivers
Configuration of activities
Mode of entry
Burger King
- Owned Store

- Franchised Store

- QSR Consumer
- Broiled Taste

- Affordable

- Quality/ Size
- Convenient

-Entertainment areas for kids

- Free Wifi
- Youth

- Business People
- Friendly & Fast

- Superfan
- Franchise revenues

- Property income
- Retail sales at company restaurant
- Franchises
- Retailers of commodities
Dorian, Farisse, Julien, Mohamed, Reda
- Management
(service)
- Menu innovation
- Brand
- Know-how
- BK GURU
- Building

- Equipment
- Payroll

- Commodities
Cost of training and assistance
- Advertising
Organic growth
strategy
Franchising : a way of divesting ?

-Selling the company restaurants to franchises

-From 1295 company restaurants to 52 in 3 years
HOW ?
Existing New
Products/Services
Markets

New Existing
Growth strategy

BK's Blue Ocean Strategy
THANK YOU !
Full transcript