Professional Documents
Culture Documents
Burger King
Burger King
ID No:
1110863030
1120713030
1310848030
1321393030
Manu
Unhealthy
Product
design
FORCES OF
COMPETITION
Threat of entry
High
cost of entry
Highly established competitors
Threat
of substitutes
Growing
Industry
Rivalry
Copycat
industry
Large amount of competition, domestic and
global
COMPETITIVE ADVANTAGE:
BRAND NAMES
Burger King
Its
Established
Loyal
since 1954
following of patrons
COMPETITIVE ADVANTAGE:
HIGHEST FRANCHISE RATE
90% of BK locations are franchised
Leads the Industry
Pros:
Low
capital
expenditure
Allows for high cash
flow/ reinvestment
Quicker expansion
into new markets
Cons:
Limited
control
Inability to influence
changes in ownership
Only 75% of revenue
Financial Situation
Mar 2009
Mar 2010
Mar 2011
Revenues
$2537.4m
$2502.2m
$2335.7m
Net Income
$200.1m
$186.8m
$107m
Assets
$2707.1m
$2747.2m
$5583.5m
Liabilities
$1732.3m
$1618.8m
$4134.3m
Shareholder's Equity
$974.8m
$1128.4m
$1449.2m
BKS RECENT
PERFORMANCE
BUSINESS MODEL
Burger King
Scalable and cost-efficient quick service
hamburger restaurant model that offers
customers fast food at modest prices.
SOLUTION