Question

Imagine that Wendy's will open 1,000 restaurants in foreign market(s). Which foreign market(s) would you suggest it enter and why? and then create a SWOT analysis for each?

Answer 1

Wendy’s should enter Africa’s market with the majority of the restaurants split throughout the country. Africa’s middle class was rising as well as their incomes, meaning they had more money to spend on going out to eat. For example, in places like Egypt and South Africa, where other American fast food chains have established themselves, Wendy’s should slowly open up to 225 restaurants in each country. There’s an existing demand for fast food. In Ghana, where there hasn’t been any McDonald’s or Burger King, they should open up less restaurants maybe around 25. Kenya is a new market that can be targeted and about 20 restaurants should look to be opened within time. They should also open up about 250 restaurants in India where there is a surge in young people entering the workforce, a rising middle class and their government is in favor of foreign direct investment. Russia is a large market and about 150 restaurants could be opened over time as there are many young people in the population and there’s an expansion in shopping malls. According to the case study, a majority of people between the ages of 16 to 50 ate fast food once a week, making it a potential target. Wendy’s should open about 85 restaurants in Colombia, seeing as there is an increase in American fast food chains. Lastly, for Vietnam, Wendy’s should think of opening up to 20 restaurants as time goes on. Their economy was no longer the poorest, but now they were middle-class. Moreover, their government was also in favor of foreign direct investment and their restaurant industry remained untapped.