Boston Chicken, Inc.
1. The unique business strategies of Boston Chicken acts as a differentiator to the market to obtain a competitive advantage. Boston Chicken’s business strategies are the key to achieving and sustaining this competitive advantage. Boston Chicken was going to utilize several different aspects to achieve their overall business strategy. First, they used collaboration with high quality area developers. Instead of franchising to large number of small franchisees, Boston franchises stores to large regional developers after a careful screening process. This means that the company immediately had strong area developers which are an important component for the development and marketing. Second, the company moved towards the implementation of a high-tech IT system. Boston Chicken spent approximately eight to ten million dollars on developing computer software to support its network of stores and linking headquarters to developer stores. This system enables general managers to have a better understanding of the stores, to enhance their operating efficiency, and to minimize the risk of fraud. Third, the company introduced flagship stores. Flagship stores consist of a retail store and kitchen facility capable of handling food preparation process for up to 20 “satellite” stores. These stores not only improve and unify the quality of the food, but also enhance the operating efficiency and reduce store-level costs. Fourth, they diversified their product offering. Boston Chicken offers a variety of side dishes apart from its trademark “Rotisserie-Cooked Chicken”. In mid 1995, roasted turkey, ham and meat loaf were added in its menu. They also offer special menus during festive seasons, such as Christmas and Thanksgiving. Diversification of product helps satisfy the customers’ needs, and widens its customer base hopefully leading to an increase in sales. Fifth, the company put a strong emphasis on customer...
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