The Research On Development Strategy Of Qsr BK Co. In China

“Food is the first necessity of man.” Catering industry has achievedsound development and variety in China. Through about20years’operations, western fast food chain business has been popular in China.KFC, as the market starter, even as No.7in USA home country, hasestablished power realm and is Top1in China; while McDonald thoughNo.1in the world can only follow KFC and share the market. BurgerKing, as No.2in the world, entered China more than10years later thanthe competitors, and hasn’t reached scale economy. Its originaldevelopment strategy encountered great challenges duringimplementation: the competitors have occupied leading positions thatseem hardly changeable, while its own brand is “weak” brand for localconsumers to attract purchase; the quantity and quality ofcompany-owned restaurants are not satisfying because best locations havebeen occupied; there has been no significant accomplishment in selectionand negotiation for regional franchisees. In the macro environment ofworldwide economic crisis caused by financial crisis in2008, how can Burger King adjust its development strategy to fit for the current marketsituation, conquer the weakness and find successful profit model? How toboost up store numbers and coverage, increase market share quickly andestablish brand awareness? Based on the analysis of competition statusand own edges plus the forecast for China’s macro environment, throughlaunching franchising model, Burger King will be able to penetrate intothe market, make profit, expand the market coverage effectively andestablish brand fame.This article takes Burger King as the object of study. Firstly, it usesthe PEST model, five strength model and external factor appraisal matrixtools etc. to analyze and evaluate the company’s external environment.Secondly, it analyzes the problems of the business operations and thereasons from multi aspects of marketing, Human Resources, new sitedevelopment, operations management, finance management, etc. as wellas internal factor appraisal matrix. Then, based on the findings of theanalysis, it utilizes SWOT Matrix, QSPM, Enterprise Strategic ResourcesDiagram and Value Curve to assess and design the company’sdevelopment strategy, and conclude into differentiation competitionstrategy. Finally, it applies Balance Score Card to make plans in fouraspects of finance, customer, internal flow and study&growth, whichensures Burger King to carry out the company’s strategy plan in dailymanagement activities and achieve the strategic goals. Through the real case study, this article will make use for referencefor those companies which will enter the market with differentiatedbusiness model and need to establish core competitive edges and teamcompetencies.