1. Burger King was absent from France, India, Nigeria, Pakistan, and South Africa until mid-2009. These countries can be evaluated as potential future sites for Burger King.
These five countries have large populations but are located far from the BK headquarters in Miami. The extent to which these countries resonate with the Burger King brand is uncertain. The challenge lies in entering foreign markets where consumers exhibit strong loyalty towards existing brands. Additionally, it is questionable whether there is sufficient beef supply to meet the demand. Burger King will face a considerable task to achieve success in these markets, especially given potential limitations in franchising opportunities.
Concern in France lies in the extent to which the population consumes beef.
India: Burger King may have jeopardized their prospects of expanding their business in India. McDonald’s outlets in India do not serve beef, as a majority of the population, about 80%, Hindus, refrain from consuming it due to religious beliefs. Unwisely, Burger King featured an advertisement depicting Lakshmi, the Hindu goddess of wealth, poised to devour one of their beef burgers, which is strictly prohibited in the Hindu religion. Consequently, Burger King is confronted with the task of revamping their menu, in addition to their ill-advised business move.
Nigeria – Restaurants such as Tantilizers have achieved considerable success in Nigeria, offering food products similar to Burger King, particularly hamburgers. However, the extent of Burger King’s success will hinge on their ability to innovate and incorporate popular Nigerian dishes like meat pies. Compared to France and India, Nigeria presents a more favorable location with less competition.
Pakistan- McDonalds has experienced success in Pakistan serving beef products, chicken, and fish. Burger King could potentially achieve similar success with its product/menu offerings. However, it will face competition from established fast food chains that already serve similar products and have a loyal customer base. Nonetheless, the market is large enough to accommodate another player due to the country’s population.
South Africa – South Africa will
If I were on the Burger King Management team, I would pursue opportunities in Nigeria, Pakistan, and South Africa. However, I believe that the market in France may yield average results rather than exceptional success. As for India, I would not consider expanding the BK brand there.
2. When entering a different country, there are both positives and negatives to consider for an international restaurant company, such as Burger King, when compared to a local company in that particular market.
Burger King entering into new markets brings both advantages and disadvantages.
3. Burger King’s restaurants and revenues are primarily concentrated in its Americas region, which includes the United States and Canada, accounting for about two-thirds of its total. The remaining one-third is distributed across other regions. Is it advisable to alter this distribution? If yes, what are the reasons and possible methods?
Despite being only 5 percent of the world population, America consumes 25% of beef, indicating that the relationship between consumption and population size should remain unchanged. Nonetheless, even if Burger King alters its menu, I do not believe this will lead to success. In my opinion, the lack of variety in international markets due to fish and chicken products is an issue.
4. According to the case, Burger King has a preference for entering countries that have a substantial youth population and shopping centers. What are the potential benefits of these conditions?
How has Burger King’s choice of headquarters’ location affected its global expansion? Has this decision enhanced or diminished its competitiveness on a worldwide scale?
Burger King has limited its international expansion, resulting in a smaller presence outside the United States and Latin America. About 75% of Burger King restaurants are found in either the United States or Latin America. While Latin America contributes to 25% of Burger King’s global operations and benefits the company, only 1/8 of the revenue comes from these restaurants because of their relatively small population. The wealthier European nations do not have a significant number of Burger King establishments.
6. Assess the effectiveness of Burger King’s strategy using the Brazilian experience as a blueprint for its operations in Russia.