Discussion 2.

1 KFC Strategy

The strategy of KFC appears to be well matched with its industry and the external

competitive conditions. KFC uses product differentiation strategy which places it in a better

position in the fast food industry thereby giving it a competitive advantage in the external

competitive conditions. Through innovative employees, the company easily identifies

consumer habits and culture based on the country of operation. Although there is rivalry in

the industry, these companies are not well positioned just like KFC. Comparing KFC and the

rivals, KFC is strongly positioned in the fast food industry. This is so because the core

products of KFC are differentiated from those of the rivals. The company has a variety of fast

foods whose tastes and styles are also different. The factors driving the fast food industry

change include the consumers’ preference for healthier foods and consumer expectations.

Fast foods are blamed for producing foods rich in high calories leading to excess weight.

Consumers are expecting healthier foods thus requiring changes in the fast food industry.