Boston chicken case
Boston Chicken Case
Boston Chicken Inc is chain of fast food restaurants, and also in the business of take-out home cooked food. The main business strategy of Boston Chicken is differentiation. To achieve their overall business strategy, Boston Chicken implemented four strategies. First, Boston Chicken focused on franchising to larger regional developers after a careful screening process. Second, Boston Chicken diversified their product offering by keeping introducing new varieties of food choices. Third, Boston Chicken expended rapidly using the area developer franchise model. Fourth, Boston Chicken spent large amount of money on developing their computer software system to support its network of stores and linking headquarters to developer stores. Boston Chicken has two key success factors. The first one is their rapid expansion through franchising; the franchise fee is a main resource of the company’s revenue. The second one is that Boston Chicken put a strong emphasis on its customers; they offer a variety of quality food choices to their customers and their food is cheap, clean and fast. The company also used certain software to get the customers’ feedback immediately. And between the subsidiaries’ the software to make sure the internal information is exchange on time. There are two key risk factors for Boston Chicken. First, the competition in fast food industry is fierce. One example of Boston Chicken’s competitor is KFC, who has earned a lot of profit after introducing their new rotisserie chicken line up. The second key risk factor is its rapid growth in new stores. Boston Chicken has opened 500 new stores between the year 1992-1994. The rapid growth also comes with a large cost and Boston Chicken might not be able to earn enough cash flows to maintain its daily operating activities. Also over 50% of the total revenue was the
Boston Chicken Inc is chain of fast food restaurants, and also in the business of take-out home cooked food. The main business strategy of Boston Chicken is differentiation. To achieve their overall business strategy, Boston Chicken implemented four strategies. First, Boston Chicken focused on franchising to larger regional developers after a careful screening process. Second, Boston Chicken diversified their product offering by keeping introducing new varieties of food choices. Third, Boston Chicken expended rapidly using the area developer franchise model. Fourth, Boston Chicken spent large amount of money on developing their computer software system to support its network of stores and linking headquarters to developer stores. Boston Chicken has two key success factors. The first one is their rapid expansion through franchising; the franchise fee is a main resource of the company’s revenue. The second one is that Boston Chicken put a strong emphasis on its customers; they offer a variety of quality food choices to their customers and their food is cheap, clean and fast. The company also used certain software to get the customers’ feedback immediately. And between the subsidiaries’ the software to make sure the internal information is exchange on time. There are two key risk factors for Boston Chicken. First, the competition in fast food industry is fierce. One example of Boston Chicken’s competitor is KFC, who has earned a lot of profit after introducing their new rotisserie chicken line up. The second key risk factor is its rapid growth in new stores. Boston Chicken has opened 500 new stores between the year 1992-1994. The rapid growth also comes with a large cost and Boston Chicken might not be able to earn enough cash flows to maintain its daily operating activities. Also over 50% of the total revenue was the