How Kentucky Fried Chicken ( Kfc ) Uses Its Uniqueness As A Completive Advantage Against Its Rivals

About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.

To evaluate the direction that Kudler Fine food wants to take the company has prepared a Strengths, Weaknesses, Opportunities and Treats (SWOT) analysis to assist the business leaders in making an intelligent decision regarding expansion. The company strengths, weaknesses opportunities and threats are listed below. The company strengths are the organization is small, no direct competition, lots of choices for the consumer, very customer oriented, good store locations, high level of repeat customers, and the owner has good personal relationships with staff.

A Multicountry approach is one in which as organization’s strategies vary according to the countries in which it does business (Coulter, 2013, p.202). This approach is centered on creating an advantage through differentiation. The products, marketing, and distribution are tailored and adopted to local culture and customs. Such local responsiveness is important when significant country to country differences exist (Coulter, 2013, p.203). An example of this would be McDonald’s Corporation. To appeal to the local customers’ palates in Singapore, they added rice burgers – fried beef slices served between two pressed rice cakes, to its menu.

When expanding into a global marketplace, companies must select a means of market entry. The decision to export, franchise, build a strategic alliance, establish a joint venture, and make a direct investment is based upon two things: an organization's interest in maintaining marketing control and how much of a financial investment it is willing to make. This holds true for 5 Bucks and Joe to Go, both of which are coffee retailers that want to enter emerging urban markets in India. 5 Bucks prefers to maintain greater control afforded by a joint venture and is willing to take on greater financial risk. Joe to Go, on the other hand, is not as willing to take on high levels of financial risk and is willing to rely on its franchisees to effectively market and brand Joe to Go in India. Both options require their local partners to adjust offerings to meet the needs of the local population while maintaining similarities in product, look, and experience across global locations.

A company’s strategic choices shape how that firm will operate and react to the use of its own resources as well as the affects of external factors. Porter tells us that firm’s position themselves by leveraging their strength’s. He argued that strengths ultimately fall into one of two headings: cost advantage and differentiation (Quickmba). CPK chooses and specifically points out differentiation as its main strategy. CPK differentiates itself through product quality through the use of quality ingredients, menu design and innovation, and expanded services and offerings beyond their main dining experience. This all falls under subcategory of differentiation known as “Quality Strategy”, which sets CPK apart from its competitors. CPK

This paper is a company analysis on Giant Hypermarket Malaysia in general, but specifically focusing on Giant Hypermarket Sabah. Giant Hypermarket is a major supermarket and retailer chain in Malaysia. It is a subsidiary of Dairy Farm International Holdings (DFI) and is headquartered in Shah Alam, Selagor. In this paper, firstly we focus our analysis in identifying the Strength-Weaknesses-Opportunities-Threats (SWOT) of Giant; in addition, we constructed a SWOT Matrix for Giant where we identified the SO, ST, WO and WT strategies, which we think Giant should apply to improve their competitiveness. Next we focus our analysis on the external as well as the internal analysis on Giant. In the external analysis, we center our

     Other issues regarding international expansion into other countries also need to be considered including, access to supportive infrastructure, adapting to local culture and trade laws. Competitors within each of these regions will also pose a threat; a deeper analysis of competition within the food service industry utilizing Porter’s Five Forces model is located on the next page.

External customers: Where external customers includes college students, tourist, business class people, aged people, children, couples, families etc. King have large group of external customers and it includes college students, tourist, business class people, aged people, children ,couples ,families etc., but its most visiting customers are college students, families and tourist. In each and every business there are competitors. In addition, it obvious that in fast food business there is more than one organization McDonald, Subway, Andoos, Kfc are the strong competitors of burger king and to survive in this strong market it has to give quality service and food at compatible price. 2.2. SWOT ANALYSIS SWOT analysis (strengths, weaknesses, opportunities, and threats analysis) is a framework for identifying and analysing the internal and external factors that can have an impact on the viability of a project, product, place or person. SWOT Analysis Strength 1.Huge popular brand name and high brand loyalty 2. Burger King serves many burgers that is typically not available in other fast food restaurant. 3. Product differentiation with large size. 4. Growth model not very capital

Kentucky Fried Chicken (KFC) is a popular fast food chicken restaurant chain around the world. (Bell, Shelman, 2011) It is one of the subsidiary of Yum Brand. This company also operates the Pizza Hut and Taco Bell. (Yum! Brands, Inc, 2016) KFC was founded by Harland Sanders in 1952. (Bell, Shelman, 2011) Sanders was successful in creating the brand, even the logo of KFC brand is the portrait of him. He became a notable figure in American history thanks to his great contribution on creating KFC brand. Nowadays, KFC becomes more and more popular, the sales ranking of KFC was the 11th among the worldwide restaurant brands. (The QSR 50, 2015) The sales of KFC in 2014 was 4200 million dollars. (Details in Appendix 1) It means KFC has a large quantities of consumption needs. Actually, KFC has 14,577 restaurants around the world and 70% of them are located outside America (Yum Brand Annual Report, 2015). The restaurant profit was increased year by year from 2013 to 2015. (Details in Appendix 2) Therefore, it is potential to enlarge the customer base by analyzing consumer behaviors.

Competitive strategy is the moves and methods that the firm has taken and is taking to appeal buyers, improve its market position, and to endure competitive pressures. The strategy is about what a firm’s capability to try to knock off competitors and attain competitive advantage, which can be offensive or defensive. There are three approaches to competitive strategy, which are low-cost leadership strategy where struggling to be the overall low-cost manufacturer in the in industry. Moreover, pursuing to distinguish one’s product offering from competitors (differentiation strategy), and the last one is focus or niche strategy where aiming on thin portion of the market rather than the whole market (Porter, 1998).

The manner in which firms are able to compete is most commonly categorized by implementing Michael Porter’s strategic typologies. Porter’s strategic theory has been the most widely accepted strategic approach used by fellow academics (Kim and Lim 1988; Bordean et al 2010). Porter proposed three generic strategies namely: cost leadership, differentiation and focus strategy. Warszawski (1996) later introduced a competitive strategy

The second force that acts on the industry is the threat of new entrants. Fortunately for McDonald’s and it’s over 30,000 restaurants world-wide, the corporation has set itself in a position of dominance. Using a growth strategy, “McDonald’s is continuously expanding its reach which makes it increasingly difficult for new fast food restaurants to enter the industry, through franchising, McDonald’s is able to reach nearly every corner of the globe” (Shell, Ellen Ruppel).

The main problem from McDonald's case, McDonald's Polishing the Golden Arches, is how to classify McDonald's strategy through Plan to Win into one of the five generic competitive strategies. Before we solve this main problem, we should determine the chief economic and business characteristics, the five forces analysis, and also the driving forces of the fast-food industry. After that we identify the strengths, weaknesses, opportunities, and threats by using SWOT analysis. Finally, we classify McDonald's strategy into one of the five generic competitive strategies.

Porter’s generic strategies describe how a company attains competitive advantage across its chosen market scope. There are three generic strategies-cost leadership, differentiation and

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