Assessing Growth and Strategy of KFC
KFC is basically one of the largest food chain in basic terms of market share, profit and revenue which is way ahead of the other brands like Mc Donald's and other foreign and domestic brands. There has been adoption of three market strategy in our coming paragraphs or study which includes- Intensive growth, Integrity Growth and Diversification growth. These three strategies play an important role in deciding the growth of the KFC.
The intensive growth is generally the first step of action in the corporate management's manual in which review of opportunities is the tool to bring improvement in the existing business. There is a useful framework which has been used to detect new intensive opportunities which is known as "product-market expansion grid". There are several measures which should be taken by the company in order to judge the market condition in which they could gain more market share with its current product using the strategy which has been mentioned above in which one of the strategy is Market Penetration Strategy. After considering this, they considers if they could develop new market for its current product through Market Development Strategy and then it generally considers about developing new products of interest in the current market and last but not the least diversification strategy is used to review opportunities for the development of new product in the market. (The World is flat #3: How KFC went global, 2009)
KFC has started its market penetration strategy from Argentina and Brazil. It is basically the strategy to improve the sales in the market of the current product residing in the market. KFC has got local leadership with the support of strong corporate sector which should be having years of experience in the penetration of their current product in the market share. There are several ways through which managers can discover the ways to grow by examining the intensive growth strategies.
KFC in its Market Development strategy has basically developed various markets in different countries to successfully launch their new product or maintain the reputation of the existing product. They have tailored its menu and décor and appearance in china hoisting high its flag of success in China. There has been adoption of localization strategy by the KFC to attain the development of market in various foreign countries instead of USA.
In the matter of Product Development strategy, there is mainly launching of new products which can attract more and more customers waving their sale high in the sky. The current products of KFC are ruling in the market instead there should be innovation going on in order to compete in the market.
Lastly if we talk about the Diversification strategy then there should be proper grabbing of the opportunities produced time to time in the market. The localization strategy has nearly touched every aspect taking from operations to marketing and advertising with brand positioning to supply chain and distribution. KFC also included vegetable menu in its portfolio for diversification.
The integrity growth is basically the study of the sales and profits of the company through forward and backward integration within the industry. All the branches and the sectors should be working equally in the right sector in order to provide a better future for the company. The general meaning which defines integrity or integral growth is taking help of every department in order to solve task or any matter concerned with.
KFC is the best example which shows the work done in integration in order to take any important decision or production and launching of any new product. There are various departments which work on the fundamentals of the integrity growth which helps in providing company strength.
The good opportunities which are present outside the existing business can make sense in the diversification growth. Diversification strategy is generally meant to expand the firms operations through addition of markets, products and services and it also includes stages of production to the existing business. The main purpose behind the strategy of diversification is to allow company to go through various lines of business which are different from current operations. (Diversification strategy, 2010)
KFC has successfully achieved the goal which has been setup by the company which has relation with the Diversification strategy. There is expansion of the firm in various countries as well which makes their part strong in the international market as well. Mainly KFC give preference to the increase in the performance objectives of the company as compared to the past levels of performance. One of the main things which makes KFC special is that it takes all the strategy together to provide their company the best.
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