Tuesday, May 5, 2020
Competitive Strategy of KFC-Free-Samples-Myassignmenthelp.com
Question: Discuss about the Competitive Strategy of Kentucky Fried Chicken. Answer: Kentucky Fried Chicken Kentucky Fried Chicken is a multinational fast food restaurant chain, which is headquartered in Kentucky is currently the second largest fast food restaurant chain in the world ranked just after McDonalds. The organization was founded in the year of 1930 and the first franchise was inaugurated in Salt Lake City Utah in the year of 1952. KFC can be seen as one of the first fast food chain restaurant which expanded outside United States. The organizations main product is pressure fried chicken pieces marinated with over eleven types of herbs. KFC became the first American organization that expanded their business in China. These information sums up the fact why this organization has been chosen for this report (Morritt and Weinstein 2012). Currently KFC is the second largest fast food chain, and they achieved this success with proper marketing strategy and providing quality food, satisfying the consumers globally. Initially KFC used the same menu in various countries, but in recent times they realized that they should introduce different menus for the different places to make it more adaptable for the people of that particular region (Rexhepi 2015). KFC faces strong competition in various markets having organizations like McDonalds, Kokoriko, Kyochan and many other brands. It is seen that the majority sales, ike more than 50% sales of the organization come from developed urban regions, but regions which are developing in a rapid pace can be a potential market for the brand like KFC. KFC ranks 147 in the table of global brand ranking table. Their policy is maintaining sustained positive brand position helped a lot to create Top of Mind Awareness. KFC with their introduction of regional foods in various outlets are now c atering to the left out section which would eventually help them to build their brand value (Baroto, Arvand and Ahmad 2014). The organization thus is seen investing a lot in their marketing strategy to compete with fierce rival organizations operating in the same market. From the above discussion it is clear that KFC has a few strengths in the competitive market and those are strong brand value, huge general workforce, perfect cost structure and innovative ideas. It is a fact, that KFC has very low company liabilities, so that gives their profitability a huge boost each financial year. KFC has huge workforces who are very motivated and loyal towards their organization, so that is a huge bonus for them, as it boosts the productivity and profitability of the organization, leaving behind their other competitors in the market. The organization thus is a few miles ahead from their other rival organizations in the market, and only McDonalds is one organization they could not beat till now , but in near future they aim to turn the table by acquiring the rank one title in the market of fast food business globally (Karodia, Linganiso and Dube 2015). Thus it is evident why an organization like KFC is chosen for this report. Unilever Unilever is a Dutch-British organization headquartered in Rotterdam and London, operating in the market of food, beverages and personal care in about 190 nations all over the world. Unilever currently is the largest manufacturer of food spreads like margarine in the global market. The organization was found in the year of 1930 by the collaboration of Magarine and Lever brothers. The organization produces food, various kind of beverages, cleaning agents and personal care products which are divided into four basic categories, such as Foods, Refreshments, Home care and Personal care. The famous brands under Unilever are Sunsilk, Vaseline, Magnum, Knorr and many more (Dirisu, Iyiola and Ibidunni 2013). Unilevers strategies based on Porters model builds a competitive advantage by satisfying the needs and preferences of the consumers. From Porters model, it is seen that generic strategies are used to make sure that organizational competitiveness is important for the growth of the business and resilience. Unilevers competitive advantage is highly based on product development approaches, which integrate research to address market demands. The organization maintains their growth rate by combination of intensive strategies. Unilever uses broad differentiation as their strategy for competitive advantage in the market. The primary focus of this strategy is its emphasis on the features; those create the products of the organization in a better way than their other rival organizations. As an example, it can be said that, the organization manufactures Dove cream soap bars to satisfy the needs of their customers, and those are not at all harmful or make the skin dry (Grant, 2016). They have se t a bit high pricing of their goods, but their products are competitive in the market, as their soaps are good for cleaning and moisturizing, both the purposes where as other soaps are only good for cleaning purposes. The main objective of the organization is to get the pulse of the consumers and their managerial body and the marketing executives are really good at it. Apart from that Unilevers vision to support the global sustainability and increasing vitality in the customers lives aligns with the generic strategy (McGrath 2013). Unilever considers market penetration as their main intensive growth strategy. According to this strategy, the organization in this particular strategy increases the volume of their annual sales to generate more revenue and growth of the business. As an example, it can be said that, in the market of home care products, Unilever quite aggressively sell their products in the current market of United States and Canada, and such efforts increase the ability o f the organization to capture the consumers away from the other rival organizations (Dirisu, Iyiola and Ibidunni 2013). Apart from these, the organization is rich with abundance of motivated workforce and with ample financial stability and big brand value, so there lays the fact that they can experiment with their strategy regarding profitability of the organization, making room for various future improvement in the ever changing market. Thus from the above discussion it is proved why an organization like Unilever has been chosen for this report, as strategically they are much superior than the other rival organizations operating in the same market (Chang and Park 2012) References Baroto, M.B., Arvand, N. and Ahmad, F.S., 2014. Effective strategy implementation.Journal of Advanced Management Science Vol,2(1). Chang, S.J. and Park, S.H., 2012. Winning strategies in China: Competitive dynamics between MNCs and local firms.Long Range Planning,45(1), pp.1-15. Dirisu, J.I., Iyiola, O. and Ibidunni, O.S., 2013. Product differentiation: A tool of competitive advantage and optimal organizational performance (A study of Unilever Nigeria PLC).European Scientific Journal, ESJ,9(34). Grant, R.M., 2016.Contemporary strategy analysis: Text and cases edition. John Wiley Sons. Karodia, A.M., Linganiso, X. and Dube, S., 2015. Investigating Factors Impacting on Restaurants' Competitive Positioning: A Study of 3 Food Outlets at OR Tambo International Airport, Johannesburg.Kuwait Chapter of Arabian Journal of Business and Management Review,4(8), pp.1-45. McGrath, R.G., 2013. Transient advantage.Harvard Business Review,91(6), pp.62-70. Morritt, R. and Weinstein, A., 2012.Segmentation strategies for hospitality managers: Target marketing for competitive advantage. Routledge. Rexhepi, G., 2015. Entering new markets: Strategies for internationalization of family businesses. InFamily businesses in transition economies(pp. 293-303). Springer International Publishing.
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