Competitive Strategy Of KFC

KFC is a successful public company due to the fact that its trading name and legal identity is so well-known worldwide. It provides us the general public with true and reliable advertising gimmicks. Its Corporate Social Responsible enhances young kids opportunities to become what they want and also keeps them fed. Each shareholder is also allowed to invest in shares easily also receiving a good return on investment. (A.Pinnock,

Mellat-Parast and Spillan (2014) defines supply chain management as the method of handling material and information moves from the beginning, through the organization, and to the end-user. This is a very important factor of organizational strategy.

Steve Ells, Founder and Co-CEO of Chipotle Mexican Grill Restaurant, states that, “Our focus on our unique people and food culture has created an impressive demand for a restaurant experience that is redefining fast food for the better.” This statement from Ells displays the foundation of Chipotle Restaurant’s success with their fast casual brand. This industry has grown 550% since 1999 due to customers seeking out fast yet healthier alternatives for their lunch and dinner (Ferdman, 2015).

The foundational element of any successful marketing strategy for a restaurant is creating a unique, highly valued experience for the customer, and being able to repeatedly deliver excellent results with each visit. The differentiating elements of restaurants are often initially defined by the food or drinks served; yet it is the experience that is delivered on a consistent basis that means the most to customers over time and leads to their loyalty (Murphy, Forrest, Wotring, 1996). For the marketing strategy of a

The service industry is incredibly divers. There are different scales, menus, ambience and customers, but all these businesses have a common goal to sell food and beverages to a target market they hope will be stratified, and they hope to be profitable (Ojugo, 2010). To make the restaurant business successful and make it stand out, the right choice of suppliers, merchandising of the product and every step is an indispensable element.

From various studies, it has been found that the restaurants are able to win the heart of their customers through good quality and tasty food meals and by giving proper services, which will fulfil their wishes. Therefore, a restaurant should look after the demands and needs of its consumers and based on that should prepare its plan for future in introducing new items in their menu and services (Padua, 2012). Different groups and organizations already have carried out many researches but researches about this particular topic are much less

Nowhere is the supplier loyalty more evident than in development of new, improved products. Some of McDonald’s classic food items like Filet-o-Fish, French Fries, Chicken Nuggets etc. are results of supplier innovation. Thus supplier technological expertise had given McDonald’s a product which was not a mere marketing innovation but a technical one. McDonald’s attempted to squeeze labor out of the stores by moving more preparation back into the processing plant, creating the opportunity to develop unique products based on suppliers’ processing skills. For the first time, McDonald’s suppliers became the focal point of new product development. This converted the fast- food industry’s most fragmented distributed system into more efficient one which helped McDonald’s reduce its inventory and manage costs effectively.

In today’s rapidly changing business environment, ever-greater demands are being placed on business on every industry, such as to provide products and services quicker, with greater added value, to the correct location, with no relevant inventory position, etc. However, customers are more sophisticated by wanting more quality, design, innovation, choice, convenience and service, and they want to spend less money, effort, time and risk. Hence, every business has to deal with highly competitive situation in order to survive; Supply Chain Management (SCM) becoming the main topic for improving efficiency and satisfy customer’s need.

Kentucky Fried Chicken (KFC) being one of the world’s largest chicken restaurant chains has many challenges. Two of these challenges being value creation through its corporate parent PepsiCo during the 1980’s and 1990’s as well as strategic issues

The intensity of competition among the firm in fast food industry is at a high level. Every firm was looking for a competitive advantage to give them the strength of surviving in the market. The concentration of firms in fast food industry is saturated. McDonald’s face the strong competition in quick service eating establishment from well-established competitor fast food outlets, such as Burger King, Wendy’s and KFC, as they provide identically products and services. Moreover, McDonald’s face the strong competition in home delivery or takeaway service, and self-service cafeterias, such as Starbucks and Dunkin’ Donuts. Hence, McDonald’s was very innovative in the products to differentiate it from the competitors and attract customers. Besides, they added a breakfast menu to compete with the other breakfast chain. McDonald’s adopted product localization need and tastes by offering

Providing customers with the best of both worlds: west meets east. In addition to its radical strategic approach of localization with regard to its food, they extended that viewpoint when selecting their management team. By hiring Chinese executives, Yum! Brands is able to build relationships with the local suppliers more easily and quickly. It definitely helps with their competitive advantage that chicken is a staple meat in China. Given these factors, it is clear that KFC has a competitive advantage in this market. However, taking a closer look at the industry and thinking longer-term, the competitiveness is undesirable but there is still potential to improve profitability. See the analysis

How much will I pay in royalties and advertising? What fees will I pay when I become a KFC franchisee?

Supply chain management (SCM) is the process that is used by a company to ensure that its supply chain is efficient and cost effective. They are aiming at provide the highest degree of customer satisfaction at the lowest possible cost through management of material and information flow in the supply chain .It requires the commitment of supply chain partners to work closely to

A company either sells its goods at average industry prices to earn higher profits than its competitors or it sells at below-industry prices, trying to profit by gaining the market share. M’cdonalds,Ikea, and Southwest Airlines is an example of a company with a cost leadership strategy.

Supply Chain Management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. It is related with efficiency of a company’s supply, the goal of SCM is, to reduce cost caused by bullwhip effect, or other dummy cost in supply chain.