Reccomendation to Kfc free essay sample

Suggestion to KFC As we know, KFC is one of the leading Fast-Food chains in the world, but their market share has been declining globally since 1989. According to the case, (pg number C-211, exhibit 4) their market share has declined from 70. 8% to 55. 6% in 1999. Also because of KFC’s dominating and widespread leadership in the US market tends to give more opportunities to rivals as the U. S. base growth rate is about 1% annually. Therefore it is totally understandable why KFC has not been able to capitalize its outmost performance over the year. Considering the fact of KFC’s current scenario, we believe that KFC needs to have changes in their different business segments. First of all, from the beginning KFC’s employees faced so much of change in management they got baffled. So their customer service and other related performances were not up to the mark. So they lost customers. Now based on our analysis, we believe they first need to solve their internal issues. We will write a custom essay sample on Reccomendation to Kfc or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They should work on the management issues to create a good atmosphere where employees are happy to work in. Companies can not success by treating employees poorly. Also we believe KFC should offer a diversified menu, provide their customers with quality food and excellent customer service. Now customers are more aware of their health, and they are more likely looking for healthier prospective. If KFC does not accept the fact and introduce new and healthier items into their menu, then competitors will satisfy them and will eventually outperform KFC as Boston did with its grilled chicken. Even though, KFC seems to have an emotional attachment to their original recipe that made their success, they definitely need to move on and develop new products that customers want in order to increase their financial performance and value. We have seen that Boston and Popeye’s are stealing customers away from KFC because they understood what customers wanted and started offering healthier items. KFC should certainly do the same and enhance their menu. As we can see from the case, KFC has been expanding throughout the globe, but hey need to prioritize and put more emphasis onto parts like Asia and Latin America where chicken is considered as traditional food. While they start attracting new markets, they should keep in mind to focus locally even though they go international in order to overcome certain barriers such as language, law and a good understanding of needs. Targeting new countries usually work better if you adapt to the local market. Also we believe KFC needs to low er price in some region in order to achieve the cost leadership in that particular market. Now these days most competitors are introducing cheaper menu and selling high volume. As a result, many customers are switching their preference. Finally they need to stay close to their mission (provide customers with quality food, excellent service and restaurant cleanliness) and make sure to know how to achieve their long-term objectives. They also have to keep innovating and coming up with new items regularly. Remember that even though, they come up with similar products, customers are most likely going to try them. They also have to follow the trend and go hand in hand with customers to satisfy their changing needs, as we have previously discussed with the current healthier food trend. They also want to keep an excellent image by treating employees fairly and keeping a good control over franchises to make sure they follow the company’s procedures. Concerning the American market, they should always keep an eye at competitors and see if possible mergers or acquisitions could be made. McDonald’s has been faster than KFC when they acquired Boston, which could have really helped KFC regain its loss market share and reduce competition. They also have to keep working on their low-cost differentiation strategy by better taking advantage of their competitive forces such as economies of scales, bargaining power, image worldwide recognition. They also need to keep an eye and be aware of new technology in order to improve their productivity and be able to compete more efficiently because even though they may have a competitive advantage now, they can be sure that they will eventually be challenged. [pic]