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Culture is the collective programming of the mind that distinguishes the member of one category of people from those off another-Geert Hofstede Different countries have different cultures. Knowing the various culture helps a business to gain competitive advantage in future and become market leader. Different cultures influence thinking, consumption standard of living pattern of an Individual and behavior. Therefore understanding of cultures across countries will help business remove all the barriers. Core areas in which culture effect International business are:
KFC, otherwise called Kentucky Fried Chicken, is an American cheap food eatery network that has some expertise in singed chicken. Headquartered in Louisville, Kentucky, it is the world’s second-biggest eatery network (as estimated by deals) after McDonald’s, with very nearly 20,000 areas internationally in 123 nations and domains as of December 2015. KFC (Kentucky Fried Chicken) was established by Colonel Harland Sanders, a business visionary who started offering fricasseed chicken from his roadside eatery in Corbin, Kentucky, amid the Great Depression. Sanders recognized the capability of eatery diversifying, and the principal “Kentucky Fried Chicken” establishment opened in Salt Lake City, Utah in 1952. KFC was one of the primary drive-thru food chains to extend universally, opening outlets in England, Mexico and Jamaica by the mid-1960s.
All through the 80s, KFC experienced blended achievement locally, as it experienced a progression of changes in corporate possession with next to zero involvement in the eatery business. In the mid 1970s, KFC was sold to the spirits merchant Heublein, which was assumed control by the R. J. Reynolds nourishment and tobacco combination, which later sold the chain to PepsiCo.
The first Indian KFC outlet was opened in Bangalore in June 1995. The first outlet however experienced challenges in form of protest against globalisation and also protests by local farmers. The challenges reached a critical stage in August 1995, when the Bangalore outlet was more than once attacked. The outlet was shut on September 13, 1995 by local authority, who claimed the organization utilized unlawfully high measures of monosodium glutamate (MSG) in its nourishment. The outlet re-opened a couple of hours after the fact as the aftereffect of an interest by KFC to the Karnataka High Court. Today, There are 350 KFC outlets in India. The company has adapted the standard KFC offerings to Indian tastes also the company has customised the deliverable in menu according to the local taste.
KFC was the first fast food multinational to enter India, after the economic liberalization policy of the Indian government in early 1990s. KFC received permission to open 30 new outlets across India. KFC opened first fast food outlet in June 1995 by targeting upper middle class population. After being acquired by PepsiCo, PepsiCo planned to open 60 KFC and Pizza Hut outlets in the next 7 years in the country. The mode of entry used by KFC in India was the Franchise Business Model majorly.
KFC’s Business model is the same across the world. Eleven percent of outlets are company owned, while the rest operated by franchise holders. KFC follows the Franchise Business Model majorly. The franchisor is KFC Corporation (KFCLLC) whose parent is YUM! Brands, Inc. KFC Outlets prepare and sell chicken, snackables and other approved menu items using the certain trademarks and trade secrets owned by KFC Corporation. The Franchise Agreement grants franchisees a license to use:
Porter’s Five Forces Model has the ability for systematically diagnosing the competitive pressures in a market and assessing how strong and important it is. To determine the competitive intensity and attractiveness of the market, Michael E. Porter’s five forces is important. This model also shows the affect of the five forces in the competitive environment of a business.
For example, companies will have an opportunity to increase prices and gain more profits if the rivalry is weak. While, companies would compete in prices if there is a strong competition, which might result in a price war. Due to the reduction in the sales margins, the result of this would reduce or limit profitability. There are some factors that effects the companies Rivalry Against Existing Competitors-
It depends on the existing entry barriers and reaction from the existing players. Existing Entry barriers are
Bargaining Power of Buyer:
The bargaining power of supplier could be very strong, if we assumed that the buying companies are not important for the supplier as its business probability doesn’t depend on them. Therefore, he could set his own terms and offer them to the buying companies and if they refused to approve on the terms, the suppliers could go to other buying companies in the industry such as McDonalds if KFC refused the terms. From the above mentioned, it can be said that, to reduce prices or improve quality, the buyer could not force the supplier.
The existence of substitute products acts as a strong competitive threat for companies as it restricts its ability to increase prices and boost revenue. On the other hand, if a firm’s products have fewer substitutes in the market, it would have a good opportunity to reflect its prices and gain more profit. How KFC is different? The USP of KFC is life tastes better with KFC. Positioning of KFC is the unique taste of product that it isn’t only fried chicken but it sell service and satisfaction of customer, For example KFC designs consumer delight. KFC adjusted new store for the higher expectation of consumer because they don’t want to be only quick and delicious but they want to get experience; part from, Brand as a product as a person but including the Brand as an experience together. Such as the KFC restaurant on Floor 6 of Central World was revolted a new store and image that it is modern and friendly with opening music of Beyonce which was purchased copyright from the music camp. That it show global Brand’s KFC. Design for various groups of customers. 4-seat, approximately 160-180 seats emphasize of the diverse group of clients. That it can be calm zone for customer.
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