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KFC Fast Food Industry - Case Study Example

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The case study "KFC Fast Food Industry" states that KFC is one of the first fast-food industries to go international in the 1950s. Though it managed to grow steadily its customer base because of the uniqueness of its chicken products, the organization has encountered some challenges…
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KFC Fast Food Industry
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Download file to see previous pages The problem to be overcome by KFC is that of ensuring its continued growth and the direction it can take to protect itself from competitors in the industry. Because KFC has limited products, though unique, it has been affected by tense competition especially from rivals like McDonald’s, Wendy’s and Burger King in its endeavor to penetrate growing markets. It has been recommended that the viable solution, in the long run, is to diversify its products while at the same time retaining its uniqueness.

Kentucky Fried Chicken Corporation (KFC) was founded in 1952 and it was one of the first fast-food industries to go international. Through Harland Sanders’ franchising strategy, KFC rapidly grew in the international market to become one of the most recognizable brands in the world. It managed to register on the New York stock exchange. Being the world’s largest chicken restaurant chain and third-largest fast-food chain, KFC planned to grow through franchises and mergers. This marketing strategy was primarily meant to allow local people to market the products since they would have knowledge about consumer needs. However, it can be noted that the restaurant industry is mature in the US hence the need to penetrate international markets such as Latin America where business opportunities are lucrative. KFC is faced with a major challenge of successfully penetrating these markets ahead of competitors like McDonald's as well Burger King among others which calls for it to revise its strategies to gain this opportunity to operate successfully especially in new and lucrative international markets.
The level of analysis of KFC is Level 1 since it is related to industrial issues. Of great concern is the fact that the restaurant industry is mature where there are many competitors such as McDonald's’, Wendy’s as well as Burger King. This shows that this is a lucrative industry in which competition exists as illustrated by Porter’s analysis (Appendix 1). ...Download file to see next pages Read More
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