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Kentucky Fried Chicken and the Global Fast-Food Industry
Case Analysis
1.0 Source Problem
The change in demographic trends in the past two decades has seen an overall increase in costs for KFC and other fast food chains. Due to immense price competition and saturation of the US market, KFC is unable to raise its prices to cover the increased costs. The slower US population growth rate, oversupply of fast food chains and the minuscule 1% growth in the US restaurant industry per year has resulted in KFC¡¦s focus on expansion of their international markets.
2.0 Secondary Problems
2.1 Short Term
Ü New product introductions are slow.
Ü Market research inefficiency. Eg. Germans were not accustomed to buying takeout or ordering over the counter. McDonalds performed better in this aspect.
Ü Crispy strips and chicken sandwiches cannibalized the fried chicken sales.
2.2 Long Term
Ü Differences between the PepsiCo and KFC corporate strategy and culture.
Ü......
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Title: Kentucky Fried Chicken And The Global Fast-Food Industry
Approximate Word Count: 3315
Approximate Pages: 14 (250 words per double-spaced page)
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