Porters five forces on kentucky fried chicken and global fast food

In this research paper, we will try to find out the effects of the fast food chain industry with regards to our environs whether on the political, social and economic aspect, technological and ecological as well. The subject industry for this study is the Kentucky Fried Chicken ranks 5th among the globally known chain restaurant business that was owned by Colonel Sanders.

Porters five forces on kentucky fried chicken and global fast food

It operates in countries with more than 20, outlets. It was the first western fast food chain to enter China and now it is its largest market worldwide.

Company Background

KFC is a subsidiary of the Yum! Brand, a company that also owns Taco Bell and Pizza Hut chains.

Porters five forces on kentucky fried chicken and global fast food

It started off with a different name and the name KFC was adopted in The products of KFC include fried chicken, fries, coleslaw, desserts, soft drinks, and breakfast. Competitive Rivalry — High The fast food business is one of the most competitive businesses today.

KFC is also facing intense competition in its business from other players in the industry mainly McDonald which is taking it head on for the top position in the global market.

Although there is product differentiation in some products, most of the products are common such as fries, soft drinks, coleslaw, salads etc. As a result, each competitor tries to come up with schemes to attract customers. Thus, the competitive rivalry for KFC is intense.

Threat of New Entrants — Medium Fast food industry requires a large level of investments, marketing, and product development before a new entrant can make a place in the industry.

The existing brands like KFC and McDonald have their brand image so strong that they have built up a huge loyal customer base. These customers avoid going to any other place than these particular restaurants. The ability of the existing brands to ensure same product taste, restaurant ambiance, and excellent customer service worldwide has made further raised the entry barriers to this industry.

Porters five forces on kentucky fried chicken and global fast food

InRadix Fried Chicken was launched and has succeeded in gaining market share and attracting customers as it offers a fresh menu Cornelius, Thus, the threat of new entrants is medium for KFC. Due to the very frequent and bulk orders, there are a large number of suppliers who are ready to agree to the terms of KFC and supply it with its required raw products.

Due to lack of product differentiation, the large size of orders, and a large number of suppliers; the suppliers do not hold bargaining power against KFC and cannot attempt to raise their prices. InKFC terminated a contract with one of its chicken suppliers due to their crude slaughtering of the hens.

Thus, the suppliers of KFC do not have any bargaining power over it. These customers have an array of choices to go to now e.KFC is a fast food restaurant chain, which specializes in fried chicken. It is the world's largest fried chicken chain with over 17, outlets in countries and territories as of December You can find more information about the business in its official website or Wikipedia’s article.

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Kentucky Fried Chicken and Global Fast-Food Industry Executive Summary This case study will show a brief history of KFC (Kentucky Fried Chicken) and how it became successful. It includes a brief history of how it ended on the road and now known as one of the most famous fast - food chain around the world.

Five forces analysis of the fast-food industry: The fast-food industry includes group of companies that are offering different products and services, which satisfy customers’ needs. These products and services might be considered as close substitutes for each other.5/5(1).

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Sample Essay on Porter’s 5 forces analysis of KFC - iridis-photo-restoration.com