Thursday, September 2, 2010
Burger business: BK going private
Firstly, I didn't know there was such a difference in types of consumers that McDonald's and Burger King target. I guess intuitively there should be a disparate for both of them to strive in the same market. It is interesting how McDonald caters to more than one customer class by having varying products. Secondly, I think it is a good approach to make BK private again to reduce effect of market fluctuations and allow the private-equity firms that control it come up with better strategies to beat the competition-rather than just copying .
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3 comments:
considering that BK has been doing so badly as a public company, i have my doubts about whether they will be profitable as a private firm. The disadvantage of being private is that it is not as easy to raise capital, which I feel will become an issue for them as they proceed.
I agree with Eshara that I don't see Burger King making a turn around any time soon. However, I do see some benefits of them going private. For example, if BK goes private they no longer have to report and communicate with shareholders and thus can issue large scale changes more efficiently and quickly.
Personally, I don't think that BK is going to catch up with MCD anytime soon. MCD has moved on to expand its market share in other industries as well. The most notable coalition was against Starbucks and Mac Cafe.
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