Question

In: Operations Management

5Guys is a well-known American fast casual restaurant chain focused on hamburgers, hot dogs and French...

5Guys is a well-known American fast casual restaurant chain focused on hamburgers, hot dogs and French fries.  It has grown rapidly in the past 20 years and now has more than 1500 store locations.  Its menu, especially its bacon and cheese burgers, are well regarded, and have received numerous awards and mentions.  In fact, the chain has something of a cult following.  Suppose 5Guys is considering offering a plant-based, non-meat burger using a “Beyond Meat” patty in its U.S. stores.  The goal of introducing such a meatless burger alternative is to increase 5Guys’ sales revenue.

The textbook describes various growth strategies firms may adopt.  A well-known framework for assessing growth opportunities is the “product/market expansion grid.”  Your task is to identify which of the four strategy options in the matrix (grid) best matches with 5Guys’ proposed meatless burger.  Briefly explain why the strategy you selected is better than the other possible ones.  Begin your answer with the name of that strategy.

4 strategy options

  • Market penetration.
  • Product development.
  • Market development.
  • Diversification.

Solutions

Expert Solution

Product Development Strategy: Is the best option that suits this situation or strategy taken up by 5Gguys because the grid explains it to be so. A new product introduced to an existing market explains this component of the product/market expansion grid. In this quadrant the new product which is introduced into an existing market must have a purpose either the company does not want to sell what they have been selling or they have identified a business volume which they have been missing or they want to experiment based on the information they have got.

The other 2 quadrants i.e. the Market Penetration & Market Development Strategy talks about the product being new and the markets being existent and new which fails in this case because the product is new to the market but the market is already existent.

Lastly, the Diversification strategy talks about the product & market being relatively new which again fails to quantify the situation in this case.

Thereby we come to the conclusion that Product Development strategy is the best select strategy in here as the market of burgers is already existent but the no-meat burger is relatively new

keosha answered 5 months ago
Next > < Previous

Related Solutions

Hot dogs and ketchup are complement goods, and hot dogs and hamburgers are substitute goods. A...
Hot dogs and ketchup are complement goods, and hot dogs and hamburgers are substitute goods. A decrease in the price of ketchup _____ the number of hot dogs consumers want to buy; an increase in the price of hamburgers _____ the number of hot dogs consumers want to buy. Question 24 options: a) increases; decreases b) decreases; increases c) decreases; decreases d) increases; increases
A fast-food restaurant determines the cost and revenue models for its hamburgers. A fast-food restaurant determines...
A fast-food restaurant determines the cost and revenue models for its hamburgers. A fast-food restaurant determines the cost and revenue models for its hamburgers. C = 0.8x + 7100,     0 ≤ x ≤ 50,000 R = 1 10,000 (66,000x − x2),     0 ≤ x ≤ 50,000 (a) Write the profit function for this situation. P =   (b) Determine the intervals on which the profit function is increasing and decreasing. (Enter your answers using interval notation.) increasing     decreasing     (c) Determine how many hamburgers...
13. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists...
13. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 10 hot dogs and 6 hamburgers. A hot dog cost $3 in 2006 and $5.40 in 2007. A hamburger cost $5 in 2006 and $6 in 2007. Which of the following statements is correct? a. When 2006 is chosen as the base year, the consumer price index is 90 in 2007. b. When 2006 is chosen as the base year, the inflation rate...
1. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists...
1. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 15 hot dogs and 8 hamburgers. A hot dog cost $2.25 in 2006 and $5.40 in 2007. A hamburger cost $5.75 in 2006 and $7.86 in 2007. Calculate the CPI for both years and then find the inflation rate. 2. In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 25 sandwiches and 40 magazines. In 2006, a...
McDonald’s is a well-known fast food chain throughout the world. In recent years, it has worked...
McDonald’s is a well-known fast food chain throughout the world. In recent years, it has worked hard to broaden its menu offering and try to broaden its food appeal. It has introduced some healthier options and has also added higher quality food and coffee as well. In addition to having thousands of locations throughout the world, McDonald’s also has very strong brand equity and is generally considered one of the top 10 most valuable brands in the world. This has...
At one point, A well known Restaurant chain sold cherry pies. A stats prof enlisted the...
At one point, A well known Restaurant chain sold cherry pies. A stats prof enlisted the help of one of his classes to gather data on the number of cherries per pie. 0,1,2,1,1,2,3,1,1,0,1,4,0,1,1,0,1,1,2,2,1,0,0,2,1,3,2,1,0,0,1,0,0,2,4 Assuming that, for cherry pies sold by the restaurant, the number of cherries per pie has A poisson distribution with the mean from part A, obtain the probability distribution of the number of cherries per pie. Let X denote the number of cherries in A pie. X...
Burger Dome sells hamburgers, cheeseburgers, French fries, soft drinks, and milk shakes, as well as a...
Burger Dome sells hamburgers, cheeseburgers, French fries, soft drinks, and milk shakes, as well as a limited number of specialty items and dessert selections. Although Burger Dome would like to serve each customer immediately, at times more customers arrive than can be handled by the Burger Dome food service staff. Thus, customers wait in line to place and receive their orders. Suppose that Burger Dome analyzed data on customer arrivals and concluded that the arrival rate is 21 customers per...
Burger Dome sells hamburgers, cheeseburgers, French fries, soft drinks, and milk shakes, as well as a...
Burger Dome sells hamburgers, cheeseburgers, French fries, soft drinks, and milk shakes, as well as a limited number of specialty items and dessert selections. Although Burger Dome would like to serve each customer immediately, at times more customers arrive than can be handled by the Burger Dome food service staff. Thus, customers wait in line to place and receive their orders. Suppose that Burger Dome analyzed data on customer arrivals and concluded that the arrival rate is 48 customers per...
Burger Dome sells hamburgers, cheeseburgers, French fries, soft drinks, and milk shakes, as well as a...
Burger Dome sells hamburgers, cheeseburgers, French fries, soft drinks, and milk shakes, as well as a limited number of specialty items and dessert selections. Although Burger Dome would like to serve each customer immediately, at times more customers arrive than can be handled by the Burger Dome food service staff. Thus, customers wait in line to place and receive their orders. Suppose that Burger Dome analyzed data on customer arrivals and concluded that the arrival rate is 45 customers per...
i need to write a paper about a theoretical firm in the fast casual dining restaurant...
i need to write a paper about a theoretical firm in the fast casual dining restaurant industry. can someone help me come up with a few topics for the break even analysis, including variable costs, fixed costs, potential revenue and selling price. here is a quick little summary of my theoretical industry: A new up-and-coming Fast and Casual Dining/Restaurant being introduced in the Tampa Bay area is “Bay’s Fresh”. “Bay’s Fresh” specializes in serving customers with a delicious experience of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT