BK's Strategy: Play Catch-Up

3G Capital Management Inc., a private-equity firm is buying out Burger King Incorporated for a portion worth 3.3. billion. They plan to hasten their international expansion thinking that BK will gain more revenue since the roots of the company are in Latin America. Burger King in Miami has been hit bad with the recession, but according to Burger King's Chief Executive John Chidsey the fact that BK has been popular in Latin American has attracted more customers to the BK brand of fast food.


I agree with the idea that 3G Capital Management is doing because as people say, not only is America a melting pot of different backgrounds, but more like a bowl of salad because there are so much diversity in American, but they all have their separate communities as well. If Bk becomes popular in other countries when they go visit they will have a different feel for Bk and prefer Bk to their rivals. Personally going to Mexico all the time, I do admire many of the popular places and fashion trends and like to do what i can to still be connected while living in the U.S. Also since national companies sell different food to attract the different populace of that country, it also gives a new feel to the food. I know when i went to Israel and Prague it felt completely different to eat in McDonalds there than in the U.S. made me curious, which can potentially attract more people through word of mouth and international expansion. 




http://online.wsj.com/article/SB20001424052748704206804575467370505104544.html


-Jacky Meltzer