Kfc Strength Essay

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Strength • Delicious and well-liked recipes (Finger Lick in’ Good) • Strongest category share amongst all its competitors. • First Mover Advantage / Global Penetration. • Widely recognized brand image. • Strong cash flows generated via Franchise and License Fee revenues. Franchises are operated by local business people Distribution strategy in non-traditional outlets Clear market image and positioning among competitors is favorable refocused its strategy to increase sales Operations Operational Problems going global Constant improvement on quality of chicken Newly established computer information system Franchises made up a large portion of KFC’s interation restaurant base.Owned by local entrepreneurs. Producers and Operators are strategically located Product consistency Outsourcing lower costs for producing ingredients with the Mercosur and NAFTA agreement Legal/Political KFC going public and was listed on the New York Stock Exchange Franchise sued Pepsico U.S. political and economical ties with Mexico Mexico’s history of restricting foreign trade Economic US market matured, restaurant expansion North american trade agreement (NAFTA) eliminating tariffs on goods shipped between Canada, Mexico and the United States. Custom Union agreement (Mercosur) Slower growth rate of U.S. population America’s experienced double digit inflation, high interest rates, and high unemployment Mexico is Unites States largest trading partner Physical Largest number of restaurants in Mexico of any fast-food chain. 10,800 restaurants KFC Corporation (KFC) (was the world’s) largest chicken restaurant chain and third largest fast food chain (2001). (They held more than 55 percent of the US market in terms of sales and operated more than 10,800 restaurants in 85 countries.) (Colonel Sanders built a) strong loyalty among

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