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Fried Chicken

1. The five-force analysis suggests that KFC faces a very active and rigorous competition.
• There is extreme rivalry in the fast food industry. There are more then a hundred other fast food businesses that KFC competes with.
• Statistics show that there is always threat of new competition as there are new chains developing from time to time in the industry. The reason behind such a threat existing is due to the fact that the industry is a highly profitable market.
• There a various number of substitutes that KFC faces as competitive forces such as fine dining, different fast food concepts such as Mexican, Chinese, Italian etc.
• There is not a significant pressure from supplies in terms of bargaining as there are also a vast number of supplies available to supply the fast food Industry.
• When it comes to bargaining between seller and buyer, there is heavy competition, due to the fact that there are many other fast food chains with the same restaurant concept as KFC, with whom KFC competes with.
2. The competitive factors to be considered to succeed in the fast food industry: -
• To succeed a fast food chain should always be working in improving their quality of food they offer to their consumers.
• The development of new product from time to time is critical to stay on top of the market; consumers always look forward to new products that businesses have to offer.
• The frequent analysis of demographics helps the business to keep active awareness of a risk in the change of their target market in a particular area. The analysis helps businesses keep track of any change needed to cater to changing demographics.
3. KFC's internal strengths and weaknesses: -
• One of KFC's internal strengths is its early experience in the international market. Due to the fact that it was among the first to enter the market it had early experience on what international markets demanded while other chains where still experimenting.
• The independent franchising strategy...