KFC – BUSINESS STRATEGY Lecturer Nguyen Phuong Mai Group 5 Duong Thi Hai Anh – 18071006 Dam Thi Thu Linh – 18071131 Lam Thi Van Anh – 18071010 Nguyen Quoc Bao – 18071048 Vu Thi Ngoc Nhung – 19071464 H[.]
KFC – BUSINESS STRATEGY Lecturer: Nguyen Phuong Mai Group 5: Duong Thi Hai Anh – 18071006 Dam Thi Thu Linh – 18071131 Lam Thi Van Anh – 18071010 Nguyen Quoc Bao – 18071048 Vu Thi Ngoc Nhung – 19071464 Hoang Anh – 19071284 TABLE OF CONTENTS Introduction 03 04 Porte r’s Diam ond Mode l Entry mode Corporate-level strategies Hinders or Motivations Conclusion INTRODUCTION q KFC is one of the leading chicken restaurants selling the best quality products worldwide, the most successful brand with the highest revenue in the industry q The business strategy of this fried chicken brand depends largely on the success of KFC PORTER’S DIAMOND MODEL q • under 35 years Demand condition Market prospect: With a young population structure (50% of the population is old) and the strong rise of the middle class, Vietnam is a delicious piece of 1cake that many businesses race to occupy • Young generation is seen as more receptive to foreign tastes and products • Industrial life, fast food, and fast drink are the factors that help Fast Food develop rapidly q Ability to pay: Vietnam's GDP per capita in 2021 is 3,694.02 USD/person according to the latest data from the World Bank Accordingly, the GDP per capita of Vietnam increased by 167.75 USD/person compared to 3,526.27 USD/person in 2020 This level of income is enough for consumers to be willing to pay from 2-6 USD for a meal at KFC without having to think too much q Sophisticated and demanding domestic customers: • The taste of Vietnamese people is very rich and diverse • Customers nowadays also pay more care about their health and the foods they consume; very difficult obstacle to overcome Factor Condition q Human Resources: • Vietnam is a populous country with a young population structure • KFC has always valued the skill level and performance of its human resources q Raw Materials: Vietnam is an agricultural country, so farming and animal husbandry are the two main industries that are very developed in Vietnam That has created a great advantage for KFC when it can use local ingredients while reducing costs q Technological innovation: Vietnamese government has a policy of investing in science and technology through a variety of priority measures q Support policy: Vietnam has had policies to open up to investors and stimulate consumer demand 2.3 Explore the corporate-level strategies that the company is pursuing in the Vietnamese market 2.3.1 KFC PRODUCT DEVELOPMENT STRATEGY q KFC has directed its product differentiation strategy to differentiate itself from competitors KFC has differentiated its products with flavors from a blend of eleven spices With its strengths of having a strong foothold in the market with completely different products from competitors, KFC is constantly making a difference but also diversifying its products in each market