Question 6. Evaluate the Burger King strategy of using the Brazilian experience to guide its entries into Russia but not its entry into small markets.
There are a number of reasons why Burger King uses the Brazilian experience as a base strategy that guides its entries into Russia but not its entry into small markets.
Firstly, BRIC countries (Brazil, Russia, India & China) have certain similarities such as they are considered to be large markets as well as have large populations; Hence because of these similarities, it is assumed that the strategy that work in Brazil could also work in Russia. The similarity of both markets was also revealed by Matt Rosenberg where he stated that “The BRICS countries include more than 40% of the world’s population and occupy over a quarter of the world’s land area.”
Secondly the BRIC countries are considered not only to be major developing economies in the world but also are developing rapidly that their combined economies could in the future be more than those of the richest countries of the world; this was also revealed by Goldman Sachs where he stated that “BRIC countries are developing rapidly and by 2050 their combined economies could eclipse the combined economies of the current richest countries of the world.” Hence it is not only smart for Burger King to model its entry into the Russian market with their Brazilian experience but also it makes sense since both countries’ economies are developing rapidly and hence will be equally attractive markets to be in.
Thirdly in large markets such as Brazil, there are usually high demands of fast foods; this was revealed in the case where it stated that “In larger markets such as BRICS, they usually have built demand for fast foods.” Hence it is wise for Burger king to model its Russian entry using their Brazilian experience since both are large markets; there is a tendency that both will be attractive for fast foods as a result.
Finally, it makes a lot of sense for Burger King...