The Fast-food Industry: McDonald’s, Burger King, Wendy’s, Hardee’s and White Castle

Introduction

The last decade of the 20th century is as critical as it is unique. It is critical because of the extreme prevalence of environmental and technological change affecting the structure of the food industry. The course that these changes follow and the end results during the 1990s will lend direction for the early decades of the 21st century. This decade in history is unique because sophisticated technological changes along with social changes have created many more opportunities for firms to develop differential advantages. Differential advantages are the unique characteristics in a firm’s marketing strategy that cause consumers to purchase its product and not the competitor’s. A differential advantage is the foundation of a firm’s performance in competitive markets.

Key components have been identified for ensuring the success of food marketers. These components include: innovation, target-market segmentation and image, physical environmental resources, and human resources. In considering the successes, failures, and mistakes of food marketers, the challenge is to distinguish whether successful food marketers received high grades using all of the components or success was determined by using some of the variables in an exceedingly original manner. Correspondingly, it would be interesting to distinguish if failure or mistakes can be attributed to either the lack of use of all components or just the ineffective use of some components.

How the management of these components brings to a successful exchange between a firm and its customers is the central focus of this course paper. The process of writing this course paper required analysis of marketing successes and mistakes in the chosen part of food industry ― the hamburger industry. Emphasis is on how to adapt key components in a volatile economic environment. The result is an approach to marketing management that should prove beneficial to executives and marketing students.

The current course paper is divided into two chapters, both subdivided into subchapters. The first chapter includes an overview of the hamburger industry ― description of franchising used in this industry, market conduct and history and marketing strategies of the main parties, that is McDonald’s, Burger King, Wendy’s, Hardee’s and White Castle. The second chapter describes the challenges faced by the hamburger industry in the past decades ― such as problems between franchisers and franchisees, changing consumer behaviour, etc, ― and changes that were undertaken or should be undertaken with the decisions of managers.

The gap between successful, failing, and merely surviving food organizations is widening each day. The point is that food marketers live in a world of constant change. Adjustments to the world of change and anticipation of change are vital in order for food marketing operations to progress smoothly. This course paper provides a starting point for obtaining more appropriate insights in order to understand the complexities and interrelationships of the hamburger industry marketing. Hopefully, these insights will prevent mistakes and allow companies in the hamburger industry to take greater advantage of market opportunities.

The main conclusions and the list of references are provided at the end of the course paper.