Product Differentiation Product differentiation means that established firms have brand identification and customer loyalty.
Employment in KFC is a low paid and low skilled job. Furthermore, it received bad publicity for selling chicken wing with kidney. Raw materials for this industry include buns, bread, chicken, oil, flour, spices, vegetables etc.
The other major factor is the pricing policies. KFC partnership with other Yum. KEF has strategy to introduce new technology whenever they think that it is a time to introduce new technology. This is cruelty to chickens and many animal welfare organizations including PETA protests against this issue.
KFC has to rely solely on Pepsi for drinks because there is no other quality supplier except Coca-cola that is the major supplier to McDonalds. Diverse competitors and high strategic stakes There exist diverse competitors in the fast food industry as it consists of local franchises to huge multinationals.
This paper company also employs underage children to a part of their workforce in order to pay fewer wages to them. And it has not only adopted the Pakistani culture but also the Religion as well. So, all these emotional ties can make it difficult for KFC to leave.
Completely divest KFC of Mexican operations. And almost all firms operating in the industry are profitable and no one would be willing to sacrifice high returns for some other reason.
Since they are in the food business it is their utmost responsibility to follow all the standards of health and food safety, to make sure that raw material procured is free of all diseases and processing is done in a clean environment.
Hence, the barrier remains low ad the threat high. This paper company also employs underage children to a part of their workforce in order to pay fewer wages to them. The following factors determine the bargaining power housed by the buyers: They made a website so we can browse easily.
Taste, in the Pakistani market does matter, but the prospect is not strong enough to stop people from switching. KFC has already been sued for many times and lost quite a few lawsuits. In general, this barrier is moderate, since nearly all the companies in Pakistan produce Halal food and contribute to some extent to the local sales; they also fulfill other requirements since entering the franchise industry.
Not only with the company they also have the connection with the international organization. The rivalry thus remains moderate. In conclusion, economies of scale in fast food industry for established franchise business exists and may serve as an entry barrier, and so contribute towards building a threat to potential entrants.
Apart from the products it offers, KFC differentiates itself on the basis of the experience it provides: This is the era of technology and more and more people are becoming reliant on their mobile phones completely.
These materials are easily available locally. So, it might be discouraged to leave. Therefore, there is not a high threat to entry into the industry. The technological factors include the Pace of change at a fast level. The first is to advertise their product; second they use the machine to cook, using the vehicle to go to the customer place.
So, management of KFC, or any other firm for that matter, might show unwillingness to make economically justified decisions due to loyalty to employees and fear for their own careers.
Hence, the bargaining power of Pepsi is high. In cashier, kitchen, marketing, service, so many other activities.
They gather all the aspect to make them perfect. Retrieved December 18,from UK Essays: Threats Saturated fast food markets in the developed economies. Food and packing material used in KFC Pakistan is procured locally, which sums up to a purchase of over Rs.
If the cost is high then the probability of customer to switch will be low. However, both being multinationals benefit from each other. This political system could change their business strategy and make the progress to their company.
However, that does not necessarily decrease their bargaining power as they still can switch to other brand at their discretion. PESTEL Analysis is a strategic tool which has been utilized by the strategists and marketers to determine and analyze the external or Macro-environmental.
Kentucky Fried Chicken provides the fast-food service. To achieve their goals they make a political system that can guide them or they called as a guide service. This political system could change their business strategy and make the progress to.
Kfc Pest Essay The political factors includes the government policies as KEF being a foreign company, but they have to obey the policies of the Government laid by the government of Pakistan, the country where the business activities are being carried out.
Pest of Kfc knows as KFC, the world most large and well knows fast food restaurant that have more than 10 thousands locations worldwide in more than 80 countries. People from younger age to older age also know the slogan of KFC, which is “Finger lickin’ Good”, and the old man with white suits hand holding a black color crutch.
KFC occupies a major position in the fast food industry, being the largest seller of chicken products in Pakistan. It captures 50 percent of the total fast food market in the country. KFC wore the title of being the market leader in its industry.
Serving delicious and hygienic food in a relaxing. The strategic that KFC use is demographic, the following factors are included in the demographical of the PEST of KFC. The first one is age, there is no age limit is focus by KFC, and they only target on every age of the society.Kfc pest