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KFCs Success in the United States - Essay Example

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In the paper “KFC’s Success in the United States” the author discusses KFC’s success in the US, which can be attributed to a lot of factors that are both internal to the business operation and to its environment. The first is KFC’s utilization of franchising to expand its business operations…
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KFCs Success in the United States
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KFC recognizes the importance of building an overall market image to succeed. This is essential in the company's operation as the consistency and reliability of its products are at stake. Consistent processes across the company's outlets ensured that each of the branches is operating at a predefined standard.

Also, the image of the company which is already instilled in the company's market should be met by all the outlets. All of the above measures are instrumental to KFC's success. 2. At first, Loy made a mistake in the strategies that he employed to conquer the Japanese market. This was evidenced by the huge losses he incurred during KFC's operation of its first restaurant in Osaka. However, as he got to know the Japanese market, he proved to be effective. Loy was able to identify a target market which is the group of trendy Japanese.

This new market required fresh marketing strategies. It called for the modification of the product line, place, promotion, and pricing. Fortunately, Loy had essentially adopted strategies that were just appropriate for his target market. Loy's strategies involved offering products that appealed more to the Japanese market. He modified KFC's menu to take into consideration the different needs of the local customers. In addition, he broadened the menu to give place to new additions like fish and smoked chicken.

To minimize cost, he designed the company's kitchen and equipment which was more space-economic. He also aggressively competed with competitors through price wars. These strategies were pursued by Loy through its association with its parent company. The headquarters' silence on Loy's management became an advantage to push through the aforementioned strategies. Another significant competitive advantage earned was the strong brand equity of the KFC headquarters. This enabled them to gain a strong partner like Mitsubishi which was very helpful in pushing the company's strategies. 3. It is recommended that Loy's strategies in conquering the Japanese market be adopted in other countries where KFC wants to diversify into.

The headquarter should let Loy and other managers independently handle the issues faced in each country. In trying to offer products to new markets, KFC should take into consideration the local taste of the market in order to succeed. Since customers typically determine the profitability of a business entity, their preferences should be addressed above the company's considerations. KFC must be more market-driven and customer-oriented by being attuned to their needs. Offering a menu that is not well accepted in the local market could be fatal to the company's operation.

KFC should not strive to maintain a global image blindly. It has to understand that different markets in the world have different preferences. Instead, it should try to position itself in a certain market by tailoring to the customer's needs. Loy and the team should be given the freedom to focus and autonomy to manage. Empowering managers often yield better performance than imposing a strict set of rules upon them. 

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