The paper “ Opportunities Which KFC Can Exploit to Uphold Its Dominance in the Fried Chicken Segment” is an informative example of a business plan on marketing. Globalization, information technology advancement, rising pressure from external forces and other fast food outlets joining the Australian market have prompted managers to rethink their strategies which can help them sustain competition and even have the market advantage (Wilkinson 2012). IBISWorld (2014) contends that most of the industry players sell the same products, therefore making it hard to compete unless product diversification is adopted by the company.
One of the industry players that have been forced to develop new products to sustain competition is KFC. IBISWorld (2014) argues that this move will be boosted by the growth of disposable incomes in Australia in the previous five years. Trends in customer age, especially the rising median age of the population have driven the demand for healthier food options (IBISWorld 2014). 2.0 The external and internal environmentThe fast-food sector has become competitive with the presence of several established companies in the market (Euromonitor 2013). Currently, the company’ s major interests are the competitive strategy that will ensure they take the largest share of the market.
Euromonitor (2013) argues that to do this, the top management must understand and analyze the strengths. KFC, Inc. has several strengths all over its internal environment. KFC lies in its employees, mission and corporate culture (IBISWorld 2012). The company has hired 12,000 employees to work in its Australian outlets and provides quality customer service. The company remains the largest chicken restaurant in Australia and the world. KFC is recognized for its slogan "finger-licking' good, " which was then changed to “ Nobody does chicken like KFC” (Barnett 2010).
This forms its corporate culture which is a shared value system in which company decisions are derived. However, the company faces external are the competitors and suppliers (IBISWorld 2012). Experts believe that with many companies getting into the Australian Fast Food Services sector, competition is poised to go up (Euromonitor 2013). More of the company's internal and external environment can be understood by analyzing its SWOT2.1 SWOT analysis2.1.1StrengthsIn Australia, KFC operates under Yum! Restaurants Australia, which is the second-largest fast-food restaurant in Australia (IBISWorld 2014).
According to IBISWorld (2014), the company has a market share of 9.3% coming second after McDonald's Australia Holdings, which has the largest share of the market at 15.3%. Globally, the company is the largest fried chicken outlet chain and second-largest fast food restaurant (Euromonitor 2013). These attributes make KFC a strong brand that is well recognized both in Australia and worldwide. The attributes also help in terms of brand marketing. Barnett (2010) posits that the company is also a market leader in pressure fried chicken and 11 herbs and spices.
11 herbs and spices remain its most trade secrets in the fast-food industry. These are the well-known product portfolio for the last 50 years. Wilkinson, (2012) asserts that the recognition of its product portfolio is an added advantage to the marketing team and indicates that this restaurant offers high-quality foods. The company has a strong and accessible location, such as Sydney, Melbourne, etc, with effective and motivated workforce to manage its franchises (IBISWorld 2012). KFC has a well-recognized image throughout the world is with strong distributed network outlets in locations like shopping malls and airports among others.
Barnett, M 2010, Colonel Sanders' new modern army of outlets, Marketing Week.
Berger, P.L & Huntington, S.P 2003, Many Globalizations: Cultural Diversity in the Contemporary World, Oxford University Press.
Euromonitor 2013, Fast Food in Australia, viewed on 3rd April 2014 http://www.euromonitor.com/fast-food-in-australia/report
IBISWorld 2014, IBISWorld Industry Report H4512: Fast Food Services in Australia, viewed on 12th April 2014 http://clients1.ibisworld.com.au.ezproxy.lib.uts.edu.au/reports/au/industry/default.aspx?entid=2005
IBISWorld 2012, IBISWorld Company Profile Yum! Restaurants Australia Pty Limited viewed on 12th April 2014 http://clients1.ibisworld.com.au.ezproxy.lib.uts.edu.au/reports/au/enterpriselimited/default.aspx?entid=20081
Kotler, P. & Armstrong, G 2010, Principles of Marketing, 13th (Global) ed. Boston, Pearson Education, Inc.
Pride, W & Ferrell, O 2011, Foundations of Marketing, Mason, South-Western, Cengage Learning
Monika J.A Schröder & Morven G 2005, Fast foods and ethical consumer value: a focus on McDonald's and KFC, British Food Journal, pp 107, 212 – 224
Simpledish 2014, Grilled Chicken Recipes - 21 Great Grilled Chicken Recipes, viewed on 12th April 2014 http://www.simpledish.com/search/?q=chicken
Wilkinson, S 2012, Competition's hot for lunchtime legend, The Advertiser.
Yankelovich, D & Meer, D 2006, Rediscovering Market Segmentation, Harvard Business Review, 1–11.
Yaziji, M & Doh, J 2009, Case illustration: PETA and KFC". NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press pp. 112–114