Wendys Case Study Essay Example for Free

Wendys Case Study EssayIntroduction The case objective was to analyze Wendys previous and trustworthy strategy and the accounting report to decide whether or not to add the chili pepper on the new menu. In another word, we will test if the chili still does a massive contribution to the total revenue of Wendys.1. Wendys success is based on the combination of product differentiation, market segmentation, quality food, promptly service, and reasonable prices. We will talk about each on the followingProduct differentiation The most important product of Wendys is the old forge hamburger. This is a hamburger do from fresh recoil and is squ ard in a unique shape so as to differentiate from the others. Wendys made the concept of particular(a) menu that just includes four main products so as to be convenient for customers to choose the food.Market segmentation Young adults and adults are the main target customers of Wendys when it is found. The target group is sufficient in size to merit disproportionate attention and it is growing over time. Its potential advantageousness is considerably greater than its size.Quality food Quality is our recipe is the permanent part of Wendys logo. In Wendys, Quality not only just inwardness the food they served but also includes the way they treated customers and employees. Wendys quality services range from old fashioned hamburger which is made from fresh beef that was cooked to order and served directly from the grill to customers, to the layout of their restaurant and franchises that is specially designed.Quick service Daves initial goal is to build the first restaurant in capital of Ohio that can get a really good hamburger without waiting 30 minutes. Wendys set a dining room that is designed to property 92 customers, and a pick-up window to serve drive-thru customers in every restaurant and expand the scale continuously.Reasonable prices Wendys believe that one way for them to go a pertinacious price competitive a nd still serve a better quality product was to limit the number of menu items. For example, they save the materials from making chili which is from cooked beef patties that could not be served as hot n juicy old fashioned hamburgers.2. The Wendys limited menu was launched by Mr. Thomas, the founder of Wendys, in early days. He decided that their menu only contains four main products hamburgers, chili, french fries, and Wendys Frosty Dairy Dessert. By pursuing this special limited menu, Wendys remains the price competitive and gains higher up average returns. However, with the increasing of competitive of competitive pressures and changing customer demands, Wendys had no weft but to add other foods in their menu such as chicken and baked potatoes.By studying the Wendys limited menu, we signify that the limited menu is a double-edged sword for this company.Advantage It is the foundation of Wendys strategy that differentiated Wendys from McDonalds and Burger King. It increased the companys benefit and reputation. Secondly, it modify the quality of products and reduced the cost due to the increasing of working efficiency. Moreover, it also saved customers time in ordering.Disadvantage With the improving of human life, there is a growing demand of product variety. As we see it, it would hardly be a long term solution to serve such a large amount of increasing customers. Although giving up the limited menu may lead the company to loss some of benefits, it is good for companys long term development.Wendys aggressively introduce new menu to their restaurants to respond to increasing competitive pressures and changing customer demand in the quick-service industry. The company competitors had well improved the quality of their products, service, facilities, and menu items, so the limited menu is not Wendys competitive advantage any more.3. Wendys drive-thru window is more booming than their competitors has following reasons. First is their site selection of resta urants. Wendys restaurants were usually located in urban or densely populated suburban areas, and their success depended upon service of process a large volume of customers. Secondly, Wendys limited menu makes it convenient for customers to order. on the other side, it boosts employees efficiency. Thats the main reason why Wendys achieved above average returns than other competitors at the beginning.