Product innovation Essay
The most important competency of Wendy’s that is valuable in transforming input into output is its innovative product development. The difference between product innovation of McDonalds and Wendy’s is that McDonalds focus on a limited range of products and innovate on this products such as twister fries or variant flavors for fries and different value meal combinations while Wendy’s innovate on existing products and in developing new products. Burger King also focuses on developing new products but at a slower pace than Wendy’s.
For Wendy’s to maintain or improve its competitive position, it has to innovate on existing food products and develop new products at a rate that keeps up with emerging demand and not easily followed by its competitors to balance it slight higher cost structure. VI. SWOT Strategies: The SWOT matrix below outlines the strengths that would help Wendy’s pursue available opportunities as well as its internal weaknesses that comprise areas for improvement and the external threats that require consideration in strategic planning to ensure the successful pursuit of these opportunities.
Strengths -strong brand based on ‘healthy fast food’ as the distinguishing factor -offering of fresh food products at low prices -motivating workplace -innovative development of existing and new products
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-develop its online ordering system for markets with sufficient infrastructure to demand for this service venue Threats -stricter regulations -susceptibility to economic conditions -market saturation -cultural sensitivity issues -environmental responsibility issues VII. Recommendations: Based on the consideration of its internal and external audit summarized in the SWOT matrix, the best strategy for Wendy’s to secure sustainable performance is differentiation.
Wendy’s has to augment its existing healthy fast food strategy that distinguishes it from its competitors, McDonalds and Burger King by developing a unique innovative product or service concept that is not easily copied by its competitors (Porter 119). The important thing is that the differentiation strategy should focus on unique innovations to solidify its distinction from other fast food companies.
By doing so, Wendy’s can also offer higher value to its consumers at competitive prices to foster customer loyalty and minimize switching.
Hoovers. “Wendy’s International, Inc. ” 16 February 2009 <http://www. answers. com/topic/wendy-s-international? cat=biz-fin> Porter, Michael. Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press, 1998. Wendy’s International Inc. “About Us. ” 16 February 2009 <http://www. wendys. com/about_us/>