Kentucky Fried Chicken Japan Ltd
KMC is among the world’s largest fast-food chicken chain. Owning or franchising more than 12000 outlets in about 90 countries 60 % of them outside U.S.A. KFC had a number of obstacles to overcome when entering the Japanese market, Japanese do not trust this brand To build trust in the KFC brand, advertising showing scenes depicting Colonel Sander’s beginnings in Kentucky that conveyed southern hospitality, old American tradition, and authentic home cooking. The campaign was hugely successful and in less than 8 years, KFC expanded its presence from KFC expanded its presence from 4000 locations to 1000 locations.
In 1971, Kentucky Fried Chicken Corporation (KFC) was one of the first businesses among handful of U.S.A. based consumer products and services companies to tackle the tough Japanese market.
Kentucky Fried Chicken Japan, Ltd is a Japan-based company engaged in the sale of fried chicken, processed chicken and pizzas. The company has two business segments. The Kentucky Fried Chicken segment offers food products including chicken sandwiches, drinks and other food materials. This segment is also engaged in the manufacturing and sale of packaging materials, such as cups and packages, the sale of processed chicken, as well as the advertising activities for its products. The Pizza Hut-related segment is engaged in the production and sale of pizzas and drinks, as well as advertising activities for its products.
• Briefly summarize the key facts, scope and aspects of the case Corporate values, local market, and culture knowledge are the key success factors to be successful in a global economy. Within the industry KFC soon learned that effective store management was also a key factor in profitability.
a) Body of the paper
a. What are the key external factors to be considered by KFC headquarters? Political environmental
Competitive environment (Porter 5 competitive forces)
Threat of new entrants
Bargaining power of suppliers
Rivalry among existing competitors
Bargaining power of buyers
Threat of substitute products or services
b. What are KFC’s key competencies and weaknesses? Any organization cannot enjoy the business without competitors. No organization can afford to ignore their competitors. It is very important for an organization to monitor the activities of their competitors, what they are doing? KFC adopted a sort of strategies that there is no competitor for spicy chicken, which is made by KFC.
Interactive relationship marketing
Strong trademarks recipes
Ranks highest among all chicken restaurants
Chains for its convenience and menu variety
Largest multi-branded restaurant in the world
Lack of knowledge about their customers
Lack of relationship building with employees, customers and suppliers Lack of focus on research and development
KFC only focus on higher income level people
c. Identify the main strategies pursued by the Japan subsidiary. Have these strategies created value?
Every organization and company has certain goals to achieve to make renew and have added value services to satisfy their customers. In 1969 Weston was appointed to open KFC in Japan and their main strategies pursued by Japan subsidiary was to not to franchise until he had proven the fast food concept with company-owned stores. ‘Brown’s instructions were to build a store and make it work; then build another and another”
Colonel Sanders became a pioneer in one of the fastest-growing industries of the postwar era. Others quickly imitated many of the practices initiated by KFC, and within a few years, several rules of the game came to be accepted in the U.S. fast food industry.
One of the...