Wendy's current strategy is one that adheres to high quality offerings as well as competitive service. That's a platform Wendy's can continue to build upon to differentiate itself from the competitors. Quality is Wendy's platform and the Wendy's icon stands for wholesome authenticity and honest quality. Wendy's has never compromised on quality by slashing prices to cheapen the value of products and tarnish its image. Wendy's is known for its Wendy's superior quality and great-tasting products.
When compared to the competition, Wendy's distinguishes itself by strictly adhering to its core competency, i.e. old – fashioned hamburgers. In other words, it does not experiment with new offerings and randomly diversify its menu line unless the offerings create economic value added or enhance the current menu line. Moreover, although Wendy's global expansion and market share growth efforts trail the competition, its brand name, service quality, and ultimately the food quality help Wendy's maintain its overall competitiveness and market positioning. The three core elements of Wendy's/Arby's strategy in terms of scope, distinctive competencies, and competitive advantage will help one further understand the nature of Wendy's strategy as well as draw conclusions as to how Wendy's manages its enterprise. .
Background.
Wendy's now known as the Wendy's/Arby's Group after the recent merger of the two companies now comprises the third largest quick service restaurant company and is comprised of the two brands Wendy's and Arby's, generate about $12 billion in system wide sales and comprise over 10,000 restaurants. The industry as whole is dominated by what is termed the "big four" which comprises McDonalds, Burger King, Wendy's/Arby's Group, and Yum Brands. Currently, McDonalds has gained the most attention among businesses within the quick service industry which is shown through their strong advantage in market penetration as well as total revenue, while the Wendy's has been generally recognized as the leader in quality and customer service.
