(Solved Homework): Below are (f)our major factors make it highly unlikely that East Coasters will get to experience the…

Below are (f)our major factors make it highly unlikely that East Coasters will get to experience the joy of an In-N-Out in their neighborhood anytime soon.

1. Quality control: There are no freezers or microwaves in In-N-Out restaurants because the company has a strict policy of serving its food fresh. Therefore, all locations must be within 300 miles of the company’s distribution facilities.

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2. Exclusivity: Everything has more appeal when it’s not available to everyone, and the exclusivity of In-N-Out has helped the restaurant gain such a rabid following of fans.

3. Competition: The East Coast has numerous burger joints that would offer tough competition for In-N-Out, including Shake Shack and Five Guys.

4. No franchising: In-N-Out President Lynsi Snyder has said the company will “never” go public or franchise its restaurants.

What do you all think about this?

Do you think there’s a chance to overcome these factors?

Would it make sense for In-N-Out to further expand?

Expert Answer

Ans: If we look at the copetition point of view, East Coast already has too many burger joints that may give tough competition to In-N Out. Cosidering the strategy it has adopted, Its a good move for In-N-Out. Fast food restaurants are perhaps the most competitive market ever. Hence its even more difficult to frame a strategy for In-N-Out in order to sustain in the market.

At present the current strategy works well for In-N-Out and in future if they adopt appropriate steps they may be able to overcome the mentioned factors. Its unique selling proposition and customer service is one of the best . If In-N-Out thinks of expanding its business further it in fact can provided company starts doing a thorough market research and yet again formulate a different strategy. For example, the animal style burger and fries. Not that many would be adopting this style in the market and that precisely makes In-N-Out exclusive. If such product range is introduced in the new markwt, In-N-Out deffinitely has an opportunity for growth.

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