Kentucky Fried Chicken and the Global Fast-Food Industry Essay
3611 WordsOct 2nd, 200515 Pages
Kentucky Fried Chicken and the Global Fast-Food Industry
1.0 Source Problem
The change in demographic trends in the past two decades has seen an overall increase in costs for KFC and other fast food chains. Due to immense price competition and saturation of the US market, KFC is unable to raise its prices to cover the increased costs. The slower US population growth rate, oversupply of fast food chains and the minuscule 1% growth in the US restaurant industry per year has resulted in KFC¡¦s focus on expansion of their international markets.
2.0 Secondary Problems
2.1 Short Term
Ü New product introductions are slow.
Ü Market research inefficiency. Eg. Germans were not accustomed to buying takeout or ordering…show more content…
A supplier group is powerful when:
å It is dominated by a few large companies and is more concentrated than the industry to which it sells. Tyson Foods in Mexico.
å Satisfactory substitute products are not available to industry firms;
å Industry firms are not a significant customer for the supplier group;
å Suppliers¡¦ goods are critical to buyers¡¦ marketplace success;
å The effectiveness of suppliers¡¦ products has created high switching costs for industry firms
Ü KFC being a major player in the industry, it has some bargaining power. Increase bargaining power enables KFC to negotiate lower prices from suppliers.
Ü Tyson Foods is the primary chicken supplier in Mexico, however, it also supplies KFC¡¦s competitors including McDonalds and Burger King in Mexico.
Bargaining power of buyers ¡V Medium
Ü Firms seek to maximize the return on their invested capital. Buyers (KFC customers of an industry or firm) want to buy products at the lowest possible price, at which the industry earns the lowest acceptable rate of return on its invested capital. To reduce their costs, buyers/customer bargain for higher quality, greater levels of service and lower prices. These outcomes are achieved by encouraging competitive battles among the industry firms.
Customers (buyer groups) are powerful when:
å They purchase a large portion of an
Popeyes vs Kentucky Fried Chicken
1731 WordsApr 11th, 20127 Pages
Principles of Management
Instructor: Ms. Livingston
Popeyes Fried Chicken Vs
Kentucky Fried Chicken
Popeyes: To be the world’s best quick service restaurant. Being the best means providing outstanding quality service, cleanliness, and value, so that makes every customer in every restaurant smile.
The strength of Popeyes is based on its distinctive brand and style of Louisiana spicy chickens that it provides on its menu along with its chicken sandwiches, chicken tenders, fried shrimps and other seafood, jambalaya, red beans and rice and other regional items. Popeyes is a highly differentiated brand with passion for its New Orleans heritage n flavorful authentic foods.…show more content…
As a human, the mind gets boring after doing and having the same thing over and over. They should also be concerned of a stiffer competition market from their competitors. Everybody wants to be the number one brand that is preferred but it is the company who is always thinking ahead and calculating risk and rewards to be the preferred brand that stays the preferred brand.
Kentucky Fried Chicken (KFC): The Kentucky Fred Chicken mission statement is "To sell fast food in a fast, friendly environment that appeal to pride conscious, health minded consumers".
Food, Fun & Festival, this is what KFC is all about. Leading the market since its inception, KFC provides the ultimate chicken meals for a Chicken Loving Nation. Be it Colonel Sanders secret original Recipe Chicken or Hot & Spicy Version, every bite brings YUM on our face. At KFC we can proudly say, “We Do Chicken right”.
Kentucky Fried Chicken is a very famous chain of quick-service chicken restaurant that started from Louisville, Kentucky. The company is became a sub-brand of Yum Brands in the year 2002 and benefitted greatly from the position and brand value of Yum foods. In the past, KFC chain of restaurants grew at a very fast pace and has become today one of the largest chicken restaurants chain in the world.
KFC has been known to be an