In: Economics
1. a. The fast food industry is extremely competitive and in some cases close to perfect competition. Identify 2 fast food chains which you feel have almost identical products and pricing and identify the almost identical products that they both sell.
b.Of the 2 that you identified, explain a strategy that one or the other has used in an attempt to gain more control of its respective market and a strategy that you think would work better.
Q1 (a) The two fast-food giants that are almost identical are McDonald's and Burger King. They sell similar menus, right from their burger choices to the slushes. for instance, the Big Mac and the Whopper are priced similarly and are almost perfect substitutes.
(b) The one strategy that McDonald's has used to gain more market is used celebrity advertising, especially in developing countries. They show advertisements where famous local actors are eating at the joint and persuaded people to follow their idols. This is an example of getting Brand Ambassadors.
The one strategy which I think will work particularly well is customizing the menus a little bit according to the tastes fo a particular location. For instance, Burger King has often followed a rigid menu whereas McD has initiated reforms in its breakfast menu for different countries. the breakfast menu for India and US are completely different if you walk in a McD joint in both. Thus has actually helped McD get a lead in the market s hare.