Suggestion to KFC
As we know, KFC is one of the leading Fast-Food chains in the world, but their market share has been declining globally since 1989. According to the case, (pg number C-211, exhibit 4) their market share has declined from 70.8% to 55.6% in 1999. Also because of KFC’s dominating and widespread leadership in the US market tends to give more opportunities to rivals as the U.S. base growth rate is about 1% annually. Therefore it is totally understandable why KFC has not been able to capitalize its outmost performance over the year.
Considering the fact of KFC’s current scenario, we believe that KFC needs to have changes in their different business segments. First of all, from the beginning KFC’s employees faced so much of change in management they got baffled. So their customer service and other related performances were not up to the mark. So they lost customers. Now based on our analysis, we believe they first need to solve their internal issues. They should work on the management issues to create a good atmosphere where employees are happy to work in. Companies can not success by treating employees poorly.
Also we believe KFC should offer a diversified menu, provide their customers with quality food and excellent customer service. Now customers are more aware of their health, and they are more likely looking for healthier prospective. If KFC does not accept the fact and introduce new and healthier items into their menu, then competitors will satisfy them and will eventually outperform KFC as Boston did with its grilled chicken. Even though, KFC seems to have an emotional attachment to their original recipe that made their success, they definitely need to move on and develop new products that customers want in order to increase their financial performance and value. We have seen that Boston and Popeye’s are stealing customers away from KFC because they understood what customers wanted and started offering healthier items. KFC should...
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