Strategic Problems and Strategic Solutions for Kfc in Sarawak
1.0 Strategic Problems Faced by KFC
Threats from rivalry Hartz Chicken will be the problem currently faced by KFC outlet at Sarawak Plaza. The threats is in the form of substitute product which means the product produce by Hartz can satisfy the same consumer needs as another product. In this case, it will be the competition to gain or attract the same market segment for their chicken focus dishes or menu.
Profit gain by the outlet eventually not enough to cover the daily operating expenses. The bargaining power of buyers increases as they seek value for their money. A buffet style dining deemed to be the ultimate value for money thus being more sellable in the market. This is something KFC outlet can’t afford to provide to their customers.
Tied to the company policies, they are not allowed to change the menu to cater to the local needs. Ineffective respond to unexpected changes in environment or demand of the consumer causing KFC to loose out in this demanding market. The inabilities to guarantee or assure superior performance at all times might caused this outlet to end its operation soon.
The financial constraint faced had been the cause for them not having any chances for a research and development process in order to improve the productivity of the outlet. Suiting individual’s preferences with their menu might is a big matter since so free selection of chicken parts allowed compared to Hartz. In the spur of the moment, the minute they reach their turn at the counter, customers are required to make a selection of dishes from fixed menu. Hartz provide a 2 hour dining time for their customers to choose their meal thus making them a preference outlet compared to KFC.
The outlet was slammed with the accused from their head office for not providing personal touch to their customer thus causing them to loose out to their competitors. This was not the reason at all. As claimed by Fatul the Assistant Manager of the outlet, he had tried hard to improve the sales of
Threats from rivalry Hartz Chicken will be the problem currently faced by KFC outlet at Sarawak Plaza. The threats is in the form of substitute product which means the product produce by Hartz can satisfy the same consumer needs as another product. In this case, it will be the competition to gain or attract the same market segment for their chicken focus dishes or menu.
Profit gain by the outlet eventually not enough to cover the daily operating expenses. The bargaining power of buyers increases as they seek value for their money. A buffet style dining deemed to be the ultimate value for money thus being more sellable in the market. This is something KFC outlet can’t afford to provide to their customers.
Tied to the company policies, they are not allowed to change the menu to cater to the local needs. Ineffective respond to unexpected changes in environment or demand of the consumer causing KFC to loose out in this demanding market. The inabilities to guarantee or assure superior performance at all times might caused this outlet to end its operation soon.
The financial constraint faced had been the cause for them not having any chances for a research and development process in order to improve the productivity of the outlet. Suiting individual’s preferences with their menu might is a big matter since so free selection of chicken parts allowed compared to Hartz. In the spur of the moment, the minute they reach their turn at the counter, customers are required to make a selection of dishes from fixed menu. Hartz provide a 2 hour dining time for their customers to choose their meal thus making them a preference outlet compared to KFC.
The outlet was slammed with the accused from their head office for not providing personal touch to their customer thus causing them to loose out to their competitors. This was not the reason at all. As claimed by Fatul the Assistant Manager of the outlet, he had tried hard to improve the sales of