Table of Contents
Driving force in the industry.
Three strategic actions for KFC Australia to combat any negative impact
KFC‘s competitive strategy.
KFC Australia was established in Australia in the year 1968, in Sydney. It has 650 restaurants and over 2 million customers (KFC Australia 2020). The company is offering service in delivery, pickup, and dine-in service in Australia. The average user base of the fast-food industry has increased with a jump in sales by 16% (Business new Australia, 2019). The company is employing over 34000 employees in its store service (KFC Australia 2020). KFC has been operational in the Australian retail chain market with its business capabilities and operations. Driving forces in the industry are essential for understanding the industry changes. Innovation, marketing, and social behavior impact communication and marketing and impact business operation. The brands face competition and industry substitute availability as a challenge. This report highlights the driving forces and company analysis of KFC Australia by understanding the impact on the business and strategic changes that can be adopted to decline the negative impact of driving forces.
The industry conditional are not static and subject to change in the environment that determines business continuity and impact the company performance and management decisions (Harrison 2016).
Three strategic actions for KFC Australia to combat any negative impact.
The identified driving forces in the industry will impact the KFC current business with a rise in competition, current product variants, and change in consumer needs identified.
The firm can gain its competitive advantage by offering a differentiation strategy where businesses focus on differentiation of their service and product from competitors. The target scope of the service is broad. The brand has competition from McDonald's, Red rooster & Hungry Jacks. KFC is Australia s second most profitable market. KFC emphasize on product quality and unique product feature for competing successfully. KFC has used a differentiation strategy across its consumer segment across a broad market with no specific age group.
From the above discussion, we can conclude that KFC driving force relates to the business environment that can impact the firm negatively. KFC has focused on the mass expansion of its store and ensuring service quality through fist mover advantage in drive-thru stores. The brand has expanded in Australia and its region accounts for its global sales as one of the highest. . The online delivery capability option that will help in marginal saving for the brand to use the model to increase in accessibility for customer retention. Government intervention and regulatory bodies can change the industry approach and customer practice that will be unfavorable for business. The competitive environment and consumer sentiments with lifestyle are growing and can threaten business expansion prospects for the company. Government penalty and tightening provisions can impact the business adversely. The food chain store has focused on quality services and good experience as a differentiator to boost store sales and digital capacity.
Business News Australia. 2019. [Online]. Collins foods report strong growth boosted by KFC Available at https://www.businessnewsaus.com.au/articles/collins-foods-reports-strong-growth-boosted-by-kfc.html. [Accessed on September 6th, 2020].
Financial Review. 2020. [Online]. KFC launches a world-first digital drive-through-only outlet in Australia. Available at https://www.afr.com/companies/retail/kfc-launches-world-first-digital-drive-through-only-outlet-in-australia-20191118-p53bgn#:~:text=KFC%20Australia%20has%20opened%20a,the%20KFC%20app%20or%20website. [Accessed on September 6th, 2020].
Forbes. 2019. [Online]. A look at the menu innovation driving KFC global sales momentum. Available at https://www.forbes.com/sites/aliciakelso/2019/07/22/a-look-at-the-menu-innovation-driving-kfc-globals-sales-momentum/#1ff6d8be598b. [Accessed on September 6th, 2020].
Fox news. 2020. [Online]. KFC apologies for the sexist Australian ad. Available at https://www.foxnews.com/food-drink/kfc-apologizes-for-sexist-australian-ad. [Accessed on September 6th, 2020].
Franchise business. 2019. [Online]. Available at KFC weddings unveiled; Chicken chain announces catering service https://www.franchisebusiness.com.au/kfc-weddings/. [Accessed on September 6th, 2020].
Franchise business. 2020. [Online]. Hungry Jack fresh choice menu.Available at https://www.franchisebusiness.com.au/hungry-jacks-fresh-choices-menu/ Accessed on September 6th, 2020].
Harrison, A. 2016. Business environment in a global context. Oxford University Press: London, UK
Huff post. 2018. [Online]. KFC Says 'FCK' In Full-Page Ad Apologizing For Chicken Shortage. Available at https://www.huffingtonpost.in/entry/kfc-says-fck-in-full-page-ad-apologizing-for-chicken-shortage_n_5a9034b1e4b0ee6416a2adfb?ri18n=true [Accessed on September 6th, 2020].
KFC Australia. 2020. [Online]. Available at https://www.kfc.com.au/about-us. [Accessed on September 6th, 2020].
Statista. 2020. [Online]. Online food delivery. Available at https://www.statista.com/outlook/374/107/online-food-delivery/australia. [Accessed on September 6th, 2020].
Wunder, T. 2016. Essentials for strategic management. Schaffer Poeschel
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