

One of the most popular methods KFC has used to retain clients is by introducing a smart card for kids that offers them discounts in KFC and other favorite outlets such as Sunway Lagoon, MPH Bookstore and Zoo Melaka.Īre you having sleepless nights because of your assignments? We help students like you through our assignment help program. Threats 021 The Threat of New Entry : McDonalds came into direct. This has caused KFC to develop mechanisms that ensure it competes effectively. Based on the external analysis, McDonalds McCafe looks like a threat to Starbucks. There is definitely intense competition that KFC constantly faces from other fast food chains especially McDonald’s. The fast food market is highly competitive. This makes it difficult for KFC to raise prices because there is stiff competition from the other competitors. The buyers of KFC products have access to many similar products in outlets such as McDonald’s, Subway and Pizza Hurt. For instance in 2004 the company terminated a contract with one of their chicken suppliers because of crude slaughtering of the chicken. This gives the restaurant flexibility to work with the best suppliers. Bargaining power of suppliers.KFC has access to many suppliers of their main product which is chicken.On the other hand, KFC has upped its game by providing Wi-Fi services and also introducing morning services. This has made the fast food restaurant very popular. An oath of allegiance for new entrants was required from 1571 (APGA, i.

The fast food restaurant offers side dishes such as Cajun gravy, mashed potatoes and rice in addition to providing consumers with mild and spicy chicken options. Under threat of deprivation, most clerics agreed to sign by March 1585.53 The. For instance Popeye’s Louisiana Kitchen has been one of the greatest market rivals for KFC. If the demand for McDonald products are rising up, new capacity keeps buyers but at the same time it results lower profits for that organisation. Moreover, it is a clear threat for existing businesses of the organisation. It can be seen as a threat for company’s future life. There are many other fast food restaurants that offer similar products as KFC and this are giving the fast food chain a run for their money. After new entrants, need of new capacity and challenge for buyers and sources problems may occur. It is easier for clients to choose KFC as compared to other new fast food restaurants unless the new entrants actually offer different menus as compared to the more established restaurants. However, KFC has the advantage of being a well established household name and this has made it very popular in its abroad ventures. Radix Fried Chicken has become popular because of it offers a fresh menu and this has appealed to many clients. Although the fast food chain market is difficult to penetrate due to many competitors, KFC’s services and products are receiving stiff competition from Radix Fried Chicken which is a new restaurant that was launched in 2008. The following analysis is aimed at determining the competition situation for KFC and how the company can improve its services and products in order to thrive in a highly competitive market. The restaurant has thrived and even expanded to other markets outside the US, in continents such as Asia, Africa and Europe. Popularly referred to as KFC, the Kentucky Fried Chicken has been in existence since 1930 and is a fast food restaurant popular for its chicken. The analysis of KFC using Porter’s five forces


We must absorb the hit because of the extremely high number of substitutes available. Another problem is that with the intense price driven competition we can't push these margin loses back onto the consumer. These higher commodity prices have reduced the profit margins of the entire fast food industry. Let’s discover this threat of new entrants and what it means for your business. With the higher energy and oil prices, commodities like corn and wheat have had an increase in prices as well. Whether it’s McDonald’s and Burger King or Marvel and DC, new entrants in the market have a way of disrupting your business. Consumers make their purchasing decisions based on price and convenience, meaning the buyer has purchasing power. Meaning that a new competitor is always on the horizon. The barriers for entry are low for the fast food industry. Competition also extends to restaurants in general. We have numerous companies to compete with including: Burger King, Taco Bell, KFC, Jack in the Box, Sonic, and Wendy's. Consumers make their purchasing decisions based on price and convenience. The fast food industry is highly competitive.
