Case Study: Burger King Beefs Up Global Operations
When venturing into new markets, it is essential that Burger King considers several factors. Firstly, the firm needs to invest actively in France, which is a developed state. This implies that the French have higher purchasing power, meaning higher chances of profitability for the firm. Secondly, the firm should invest in India and South Africa, which are a rapidly developing BRIC states. Due to the rapid development in the two states, the purchasing power of consumers is constantly rising. India, with a higher population should, however, be the first consideration of the two. In addition, Nigeria is one of the most populated countries of Africa. Therefore, it would be an ideal destination compared to Pakistan, which is a politically unstable state. Question 2
When expanding to new markets, international firms tend to attract customer attention due to their strong brand names. In addition, Burger King attracts a wide range of clients of all races and sex due to their wide range of products. The firm is also innovative, which enables it to create products designed to attract specific client groups. The firm is, however, faced with stiff competition from established local companies, which are in many cases supported by the socio-political classes in the new localities. In addition, some of the products produced by the firm are less appealing to local populations, which consider them unhealthy, resulting in fewer clients. Finally, labor costs in new localities have impeded the development of the firm. Question 3
The Canada and the U.S. markets are constantly shrinking in size, with many competitors, such as KFC, McDonald’s, and other restaurants coming into play. Consequently, international markets hold greater potential of supporting business growth. The BRIC countries, in particular, have high populations and medium to high-income earning populations and therefore, they provide ideal business...
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