Suggestions on the strategic quality - Assignment Example

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Although McDonald surpasses KFC in sales and fame, KFC performs better than McDonald in other countries. The aim of this paper is to explain explicit suggestions that this two firms can use to…
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Suggestions on the strategic quality
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Strategic Quality: Suggestions for KFC and McDonald’s al affiliation Strategic Quality: Suggestions for KFC and McDonald’s KFC and McDonald are among the top international fast food restaurants globally. Although McDonald surpasses KFC in sales and fame, KFC performs better than McDonald in other countries. The aim of this paper is to explain explicit suggestions that this two firms can use to expand their market. I am going to explore two market strategies that can be used in each one of these two firms.
Prospector Strategy for KFC
KFC like every other organization will be faced with uncertainty. To overcome these risks, whether state uncertainty, effect or respond, KFC should adopt its respond (ROBERTS-LOMBARD, 2009). In this case the prospector strategy. Prospector strategy involves active programs that enable a firm expand into new markets stimulating new opportunities. An organization following this type of prospector strategy should be highly innovative and continuously seeking new markets and prospects (Sun, 2006). The firm should be conversant with growth and should be able to take risks (Millington, 2015).
KFC should use prospector strategy because they are a growing market and need to experiment regularly with potential responses to environmental trends that are emerging from the new market that they are creating. Instead of KFC centering their focus on the young generation, they can develop a new idea that should be serving different categories of customers with different meals. It can come out with a family package that serves the whole family
KFC can also come out with new products and including them in their menu. They can also venture into catering services and functions like after school parties and site selling for outdoor events. It should also encourage its employees to develop new ideas and products so as to excel in the business market (Millington, 2015).
McDonalds Defender strategy
Organizations that adopt the defender strategy are companies that produce a restricted set of products directed at a very constricted section of the total market (Sun, 2006). These organizations ignore trends and progress outside their distinct area and their growth is often based on market penetration (Marek, 2014). Firms with this kind of strategy try to avert other companies from entering their market.
McDonald’s has a global, extensive presence and acclaimed products. It is an already established company and can use this strategy to deter other firms from entering its market by lowering prices that their competitors would fail to meet in regards to making profits. McDonald’s is a capital intensive company ranked at the top in terms of sales and assets. It can, therefore, use efficiency (mechanization) to reduce the cost of production and subsequently market prices (Marek, 2014).
Its success can be determined by the way it can effectively use this strategy. If the firm is threatened by the growth of KFC, it can roll out a new product that KFC does not have in the market and enhance profits. Thus by doing this, it will still retain the market and maybe be able to keep the competitor out of business.
McDonalds is an established company and around 65% of its restaurants are in America (Boje & Yue, 2005). The best approach they can take to maintaining their position is by keeping their major markets and trying to expand into other territories. Through this, they get to satisfy their customers’ needs in different geographical areas. They can also produce different products in different geographical areas.
Boje, D., Driver, M., & Yue, C. (2005). Fiction and Humor in Transforming McDonald’s Narrative Strategies. Culture & Organization, 11(3), 195-208. doi:10.1080/14759550500203151
Millington, A. (2015). KFC brand turnaround will be led by emotional strategy, says CMO. Marketing Week (Online Edition), 1.
ROBERTS-LOMBARD, M. (2009). Customer Retention Strategies of Fast-Food Outlets in South Africa: A Focus on Kentucky Fried Chicken (KFC), Nandos, and Steers. Journal Of African Business, 10(2), 235-249. doi:10.1080/15228910802479521
Sun, Y. (2006). Organizational strategy and IT outsourcing a perspective of Miles and Snows strategic typologies. Ottawa: Library and Archives Canada = Bibliothèque et Archives Canada. Read More
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