“CASE: BURGER KING”
* Jhairo Avila Ramirez cod. 0911569
* Nora Maldonado de la Cruz cod. 0910993
* Nathalie Ríos Garcíacod. 0820269
2012 - II
CASE: BURGER KING
Burger King decided to be international because the fast food burger market was saturated in the United States. That’s why Mc Donald’s has been soaggressive in overseas markets.
Burger King tried to enter the Japanese market once before. It began selling franchises there twenty years ago; franchisees paid an initial franchise fee plus royalties tothe parent corporation. However, the royalties were too high and the operation failed. As if all that weren’t enough, the number two burger place in Japan is a local competitor, Mos Burger, which has25 percent of the market.
In addition to burger king’s previous failure, near saturation of the Japanese market, and stiff foreign and local competition, the company faces another problem in Japan.Burger wars have plagued the entire fast-food industry and almost eliminated profits-even for McDonald’s.
Burger King realizes that this time it must find an innovative way to enter the market. Thesolution? Joint ventures. Burger King joined with Japan Tobacco, Inc., to form Burger King Japan. Because Japan Tobacco is two-thirds owned by the Japanese Ministry of Finance, it brings deeppockets with it. Its first move was to buy out Morinaga Love Hamburger chain and immediately convert the thirty-six Morinaga Love restaurants to Burger Kings.
1. What aspects ofJapan’s economic, political/legal, and cultural environments are important for Burger King to understand?
The Japanese culture is different than the American, in Japan they are use toconsume meal base in fish and a lot of vegetables. The problem with Burger King is that they want to conserve the original hamburger without adapting it to the Japanese culture. That puts them in a...