Burger King Value Chain Analysis in 2022

 

Burger King is one of the highest fast-food franchises in the world. It has outperformed many well-known brands and ranks as the topmost hamburger franchise, next to McDonald’s. It has grown from small beginnings to over 18,000 franchises across the world. Let’s assess Burger King’s Value chain analysis in 2022 to find out how it stands amid tough competition.

Background of Burger King

As far as the fast-food business goes, Burger King has been an innovator for quite a long time. The firm constantly expands its products and services to fulfill the ever-evolving demands of customers. Burger King stresses the designs in goods as well as services. Customers get flame-grilled burgers and other items at this restaurant because it’s one of the few venues that offer them.

The company gathers customer inputs through its My BK Experience portal. Based on the inputs, the brand takes concrete steps in the right direction to maintain quality at all levels. In addition to this, the company modifies the operations of its manufacturing facilities and employs specialized control crews for corporate operations, franchisees, and third parties.

What is Burger King Value chain analysis in 2022?

The value chain intends to discover the company’s core competencies for further development. At the same time, it allows the brand to find and check any potential threats concerning cost disadvantages or new entrant barriers.

Not just that, both external and internal co-operations within the company become identifiable. As a result of this approach, the organization’s executive management can make strategic decisions for better prospects.

Burger King’s main (primary) activities

Burger King specializes in hamburgers and other items such as burgers, chicken and fish, sides, salads, desserts, and drinks. The firm provides pre-packaged meals for children and adults alike for convenience. Burger King’s key approach lies in the economies of large-scale production. It’s the result of the development of product combinations on massive scales.

Inbound Logistics

Inbound Logistics is critical to cultivating exceptional connections with supply since their assistance ensures hassle-free distribution, receipts, and storage of the product. Also, analyzing the complete supply chain requires any company to consider each aspect of its operating process.

In the absence of analysis, the business may face a slew of difficulties during the operation process. To overcome this challenge, Burger King has formulated rigorous plans to manage its complex supply chain. The advanced plan allows the company to streamline the activities while overcoming any possible hassles that may come along.

Operations

Operation process analysis gets easier and streamlined if all the required raw materials for production are in stock. From here, the manufacturing workers and specialists get to concentrate on the developing processes, such as packing, assembly, and testing of the products right from the raw materials to the supply of the finished items on the market. However, there are high chances of trial and error throughout the process.

Burger King’s operational processes analysis helps the company maximize its efficiency and enhance overall productivity while ensuring competitive performance in production and serving. Additionally, a thorough analysis has allowed the company to increase market share, establish an impregnable foundation, and achieve strong economic growth for a better competitive advantage over others.

Outbound Logistics

 

It refers to operations involved in delivering a good/service to a customer after passing through a series of channels. Outbound logistics stand paramount for any business. The company can capitalize on the data to explore new opportunities for further growth.

These activities include warehousing, material handling, schedule, transport, delivery, and the ordering process. Also, if all activities get processed correctly and timely, the product’s cost will come down without impacting the quality. As well as ensuring potential growth opportunities, customer satisfaction gets amplified in the process.

Here, Burger King enjoys an edge. It follows a franchise model. So, the question of any delays in the supply of raw materials is almost negligible. Each franchise has to work as per the set standards of Burger King in terms of operations, leading to better-operating results. That gets reflected in low cost and higher efficiency.

Marketing and Sales – The main driver of Burger King Value chain analysis in 2022

A business can’t make money without effective sales and marketing activities no matter the quality and competitive advantage of the product. Sales and marketing have a key role at this stage. So, the firm has to focus on the benefits and exclusive features of its products to grab the attention of potential customers.

Burger King has set the benchmark in this respect. The company has completed various sales and marketing schemes for simplification, including relationships with its channel associates, pricing, sales forces, advertising, and others.

Furthermore, the firm adopts a funnel approach to use its marketing activities. Even better, the company has established competent and well-integrated marketing operations to build the firm’s image, distinguishing it from competitors.

On the other hand, the company’s over-reliance on the American market poses issues. Around 44 percent of the income gets generated from the US market. So, if something goes wrong with the US market, Burger King’s overall revenue could be in jeopardy.

Burger King’s success attributes to low-cost leadership and extensive differentiation initiatives. The company strives to minimize its operational expenses by offering a wide range of products at deeply discounted prices through economies of scale.

Have it your way – is the company’s powerful spirit. It’s this strong unique selling proposition that drives consumers crazy towards its products. The whopping sales and ever-expanding customer base highlight this point.

As a result, the company’s consumers believe that they’ve control over their meal choices. In addition to this, they think that this hamburger influencer meets their individual eating desires and expectations.

The way you cherish your hamburger doesn’t need to be just like others. You can maximize your enjoyment if you customize it to fit your liking. Also, a better taste makes you fulfilling and gratifying.

After-Sales Services

Today, customers think about support services as important as discounts and other promotional schemes. Here, Burger King has done a great job. It has excellent marketing and support services for customers.

However, the company must review the back-line operations to prevent its reputation from undermining. So, after-sales services must be carefully delivered to the customers efficiently and timely.

Burger King’s Support Activities

Activities such as facilitation and coordination to the company’s primary value chain operations are crucial for success. So, an analysis of the secondary activities, mentioned below, can benefit the company.

Infrastructure

To maximize its overall value, the company builds the right infrastructure management. It encompasses how well the brand manages its strategic planning, financing, legal, and accounting aspects. These matters let the company have better control over its expenses, improving its positioning over others in the market.

Human resource management

Efficient management of human resources enables Burger King to minimize potential competitive threats by tapping over the workforce’s ambition and dedication. Also, human resource analysis helps the company to hire/train its employees cost-effectively.

In the process, the company is able to accomplish its budgeted expenditure plan. Hiring, training, performance appraisal or rewarding, and other human-resource-related activities exemplify how the company performs. And Burger King excels in all these departments.

Technology Development

Many things related to technology keep happening in the world. The firm has invested a huge sum into the technology to ensure it survives the competition and stays abreast of times. Every process in product development gets supported by updated technologies such as ordering software (app), data management, and analytics thereon.

Furthermore, the company synchronizes the innovation as well as the development of technology into marketing, distribution, and human resource management.

Procurement

As a part of Burger King’s Value chain analysis in 2022, procurement describes the activities in procuring the inputs required to produce a product, from inbound to outbound logistics.

These activities include raw materials, machinery, suppliers, spare parts, and other equipment. This complicated operating expenditure warrants an effective procurement. Burger King stays on top of the game through franchising and cost-cutting wherever possible. Consequently, the brand has operated successfully across the globe.

The brand has a global presence with a strong franchising model. Due to the successful franchising model and related royalties, Burger King has over 18,000 locations throughout the globe. For example, Burger King Franchisees benefit from relatively low startup costs, thanks to the company’s low investment volumes. The firm is expanding rapidly into new areas, which has earned it the sixth rank in the chain of quick serving restaurants worldwide.

The popularity of Burger King comes from its wide range of domestic and foreign options on the menu. A simple menu is another major selling point. Whenever new dishes get added, they’re made with ingredients on hand.

Constant Development

Burger King’s original menu continues to reinvent and revitalize the company, winning new consumers and retaining existing ones. The exciting whopper release, the delicious sandwich made from plants, and similar innovations resulted in more consumers. So, the company keeps evolving and growing even in a competitive business world.

Burger King Value chain analysis in 2022 – Key takeaways

The organization ensures that customers can identify the brand no matter the location of the store. Its operations align with the production and distribution even in today’s saturated market. Burger King identifies and decides on various aspects for improvements, cost-cutting, and optimized procedures for betterment. So, it’s right on top of the market despite the uncertainties and competition.