Burger King External Analysis

Topics: Hamburger, Fast food restaurant, Fast food Pages: 12 (1802 words) Published: December 23, 2008

Team Members:

Ahmed El Salawy 20050026

Gina Mostafa Hassan 20050106

Jala Wageh Younan 20050097

Mohamed Babers 20050275

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Table of Content

1. Executive summary

2. Introduction.

1. Brief History.

2. Burger King Egypt.

2. Mission.

3. Forces Driving Industry Competition:

1. Determinates of entry.

1. Economies of scale.

2. Product differentiation.

3. Capital requirements.

4. Cost advantages.

2. Determinates of Supplier Power.

1. Switching cost of suppliers.

2. Impact of inputs on cost or differentiation.

3. Determinates of Buyer Power.

1. Bargaining leverage.

a. Buyer switching cost.

2. Price sensitivity

a. Price/total purchases.

b. Impact on quality.

4. Determinates of Substitution Threats.

1. Buyer propensity to substitute.

2. Relative price performance of substitute.

5. Determinates of Rivalry.

1. Brand identity.

2. Industry growth.

3. Investment in technology and restaurants.

4. Product difference.

5. Exit barrier.

4. Competitive Profile Matrix.

5. External factor Evaluation Matrix.

Executive summary:


External analysis:

During the external analysis phase we tried to cover all the factors that would affect burger king so we worked on getting these factors from two sources:

1) Internet searching to gather all the factors that affect the market as a whole.

2) Contacting managers working in burger king

After we got these factors we used three tools to see the assessment of external environment on our company.

The three tools:

• Forces Driving Industry Competition:

We concluded from this tool

➢ That threat of new entry in this highly competitor market is not much big if this competitor wasn’t w well known brand, but if he was mega brand the threat would be high.

➢ The supplier power is big in our industry, so for us to decrease this power we put more than one alternative supply for our inputs as we can, to decrease the number of unique suppliers and their strength on manipulating our supply chain.

➢ The buyer power in our industry is not so big because of the different buyer’s categories we serve.

➢ The rivalry in our industry is big as all the competitors do their best to attract more customers to their company.

• External factor Evaluation Matrix:

Through this tool we took all the threats and opportunities and the affect of each of them on our company and our score was 3.358 which means that we know how to overcome the threats and make use of opportunities

• Competitive Profile Matrix:

MacDonald’s are highly achieving their critical success factors, Hardees can response to...
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