Wendy’s is the world’s third largest fast food company founded by Dave Thomas. The major competition to Wendy’s comes from McDonald’s, Yum and Burger King. The company’s key strengths are its strong market position, its increasing profitability and differentiated product offerings. The key opportunities that lie ahead of this company are: a scope of establishing new restaurants, the rise of the industry in the US and its image as a innovator of health food. The company is perceived as a company which serves fresh, healthier, fast and delicious food.
The company has been improving significantly over a period of time. The company recently had a change in leadership and the new team is focusing on recovering the lost market share. Steps have been taken in this direction; these steps have started showing results as well. The same store sales have gone up. But the company has to take care of some weaknesses as well. These weaknesses are its performance in the US and weak returns.
The company also faces some threats from competition, rising cost of raw materials and increased health consciousness.
The company initially started as a cost leader but after the competition adopted the same idea the company has been using a different positioning strategy. When the competition started fighting over price Wendy’s took a different role by positioning its products as premium products and it’s advertising focused on the desirability of the product.
With the stated positioning strategy the target segment should be: