Shake Shack, an iconic American fast food chain, has evolved from a humble hot dog cart in New York City to a global gourmet burger phenomenon. Founded in 2001, Shake Shack’s journey is a testament to strategic growth and an unwavering commitment to quality. This poster delves into the dynamics of global consumers and the marketplace, using Shake Shack’s impressive expansion and innovative marketing strategies as a case study. MBA students will gain insights into how a local food venture can transform into a worldwide brand, understanding the challenges and opportunities in the global marketplace. This example serves as a perfect reference for students seeking management poster assignment help.
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Table of Contents
Company Overview
Shake Shack is an American fast food chain and its headquarters is situated in New York. In 2001, Shake Shack started as a hot dog cart, and later on with steady growth the company was able to deliver gourmet burgers, crinkle fries, and milkshakes to people around the world (Shake Shack, 2022).
Shake Shack expanded to Australia through its competitive strategy, “We stand for Something Good and Enlightened Hospitality”. Shake Shack with its unique and high-quality food abe to target the consumers of the Australian market.
Global Expansion
Shake Shack has almost 360 locations around the world and operates almost in 83 countries.
The presences are :
- US
- Hong Kong
- UAE
- UK
- Thailand
- Turkey
- China
- Mexico
- Kuwait
- South Korea
- Singapore
SWOT ANALYSIS OF THE ORGANISATIONS
Strengths
- Unique value proposition enhances high customer satisfaction
- Well-reputed brand among the customers
- Use of digital strategy for meeting the economy’s scale
- Provide unique taste to the customers
Weaknesses
- Less differentiation in the menu leads to a reduction in the revenue scale
- The decline of market share and niche market
- Shake Shack built a new robust supply chain network that results in high cost (Sukmawati, Naufal, and Puspita, 2021)
Opportunities
- High growth for the licensed business in the international market
- Accelerate a wide range of technology and advances for better supply to the customers
- Strong brand recognition in the domestic market
Threats
- The rise of Covid-19 had a negative impact on the company
- Threats of competitors in the international market such as Mcdonald’s, Starbucks, Burger King, and many more
- High risk of reputation damage in the context of food safety issues
Target segmentation
Geographic
It is highly efficient for Shake Shack in the international market to understand the customer’s culture and perspective.
Demographic
Shake Shack divides customers into two segments the income of the customers and the life cycle stage. PRIZM framework helps to classify the segments (Kelso, 2022).
Behavioural
Continuous engagement of higher customer satisfaction rates with a high promoter set and proper knowledge of the attitude and behaviors of the customers.
Psychographic
Shake Shack uses these segments to divide the customers into different segments such as characteristics, opinions, and social issues.
Shake Shack’s main target customers are those aged 18 to 34 who are willing to have good quality food at an affordable price rate. It is one of the fastest-growing chain companies in the global market.
Hofstede cultural dimension
The major benefit of Shake Shack’s expansion to Australia is that the cultural dimensions of Australia and the American people are almost at the same rate by observing the graph rate. Society will be driven by competition achievement and success. It also developed competition, achievement, and success. Australian people prefer good quality fast food which helps the company to increase its reputation in the marketplace. The other cultural considerations of the target market are behavior, attitudes, lifestyles, and business decisions.
REFERENCES
Kelso, A. (2022). Shake Shack’s Unit Growth Target Had To Be Adjusted Because Of Labor And Supply Chain Issues. [online] Forbes. Available at: https://www.forbes.com/sites/aliciakelso/2022/06/06/shake-shacks-unit-growth-target-had-to-be-adjusted-because-of-labor-and-supply-chain-issues/?sh=3c190fc553ee [Accessed 11 May 2023].
Shake Shack (2022). Home Page. [online] Shake Shack. Available at: https://shakeshack.com/.
Sukmawati, M., Naufal, T. and Puspita, C. (2021). A Study of Generic Strategy in Fast Food Company and The Effect of Covid-19 Pandemic: Case Study of Shake Shack’s Competitive Strategy. [online] Available at: http://ieomsociety.org/proceedings/2021rome/431.pdf.