The following are the primary competitors of McDonald’s in fast food industry, primarily in the US:
Wendy’s Old-Fashioned Hamburger was founded by David Thomas in Ohio and was incorporated in 1976 (Wendy’s 2008). The company is considered as the third largest fast-food hamburger business in the world that is operating 9,000 stores in about 33 countries in the world. During 2002, the company recorded total revenue of 2.73 billion that shows 14.2% increase compare to 2001. The strategy of the company focuses on offering different products and services compare to its competitor (Thompson & Strickland, 2005 p. C-223).
During 2002 – 2003, most of the food chain company is focusing on lowering the prices of their products in order to gain competitive advantage, but the company refused to follow the said trend and continue to focus on the quality of their products than price. As a result, Wendy’s had been able to offer unique items such as Garden Sensation, that enables the company to become prominent as a company that offer healthy items in their menu (Thompson & Strickland, 2005 p. C-223).
In terms of expansion, Wendy’s focuses on international expansion in Latin America, and uses acquisitions of smaller brands and joint ventures as the primary approach in expansion (Thompson & Strickland, 2005 p. C-224).
During the second quarter of 2007, the company reached a total of $558.3 million of sales, showing an increase, compare to $557.7 million in the same quarter of the previous year. The company recorded a decline in their franchise revenue, from $76.3 million of the second quarter of the recent year to $75.6 million of 2007 second quarter, this is because there is fewer open franchise restaurants compare to 2006
Based on the said facts, it can be seen that Wendy’s maintains its core strategy, which is to focus on the quality of their product and not on...