Case 1: Selling Whoopers in Japan

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Case 1: Selling Whoopers in Japan What aspects of Japan’s economic, political/legal, and cultural environments are important for Burger King to understand? Japan is a country that has strong cultural presence, with about 99 percent of population being Japanese. Thus it is important for Burger King to adjust their outlets according to the needs and wants of Japanese customers. Another aspect that is important to take into consideration is the fact that competition is very strong, with McDonalds being one of them. Mos Burger which is another competitor, with 25 percent of market share, is a huge threat for Burger King as well. Even though burgers are not exactly Japanese type of food, the fast food market is maturing, thus making it hard to gain profit, even for big companies like McDonalds. The fact that Japanese customer is in great supply of burgers lowers demand for them, making it harder to sell. Why have Burger King and other companies in the case decided to enter foreign markets? Why have they chosen Japan? Do you agree with their decisions? Burger King and other companies like McDonalds decided to enter foreign markets because U.S. fast food is market almost reaching its saturation. After reading multiple articles I can conclude that it is relatively easy to enter Japanese market, because prices are not high, due to domestic recession and resulting price deflation of the past 8-10 years. I definitely can agree with McDonalds entering the market, with its aggressive marketing program. Even though McDonalds creates high competition for Burger King, I still believe that Burger King is making the right decision by entering Japanese market, even though it is a bit risky. However for Burger King it would be hard to gain big market share, because market is near its saturation. Contrast Burger King’s entry strategy twenty years ago with its present entry

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