Porter`S Five Forces Frame Work:
1.
Introduction –The five forces frame work of analyzing was introduces by Michael E. Porter in his book competitive strategy `Techniques for analyzing industries and competitors`. Through this tool we can analyze an organization in strategic process. Porter has developed the five forces in such a way that any organization or any market can be benefited or analyzed. Based on the information about the KFC using the five forces analyses management can decide how to influence particular characteristics
Entry
For the current United Kingdom market for fast food, it is not difficult for a fast food restaurant to enter the market. However, it would be extremely difficult to take over already running major fast food chains' dominancy in United Kingdom or even make a significant amount of profit. While there are enough people in urban United Kingdom for any restaurant to survive, KFC holds the first-mover advantage into the 'non-veg food specialty food segment' that gives them free reputation. Customers, especially children who are used to going to KFC as a treat or reward from their parents or grandparents, are not going to want to go to other restaurants they’ve never heard of .The brand name is already established .Also, there is already a large variety in the numerous western-style dining places in United Kingdom, such as McDonald’s, Pizza Hut, Domino's and Subway, and any new fast-food entrants would just be presenting something very similar to what’s already there. While small neighbourhood restaurants generally have low barriers to entry, these are the barriers to entry for similar restaurant businesses to enter the fast-food chain market.
Buyer/Supplier Bargaining Power
The customers of KFC, especially as individual buyers, have almost no bargaining power because if only one customer threatens to no longer eat at KFC, the store is not going to lower its price because the cost of losing one customer is not very great. The suppliers like the buyers, have very
Introduction –The five forces frame work of analyzing was introduces by Michael E. Porter in his book competitive strategy `Techniques for analyzing industries and competitors`. Through this tool we can analyze an organization in strategic process. Porter has developed the five forces in such a way that any organization or any market can be benefited or analyzed. Based on the information about the KFC using the five forces analyses management can decide how to influence particular characteristics
Entry
For the current United Kingdom market for fast food, it is not difficult for a fast food restaurant to enter the market. However, it would be extremely difficult to take over already running major fast food chains' dominancy in United Kingdom or even make a significant amount of profit. While there are enough people in urban United Kingdom for any restaurant to survive, KFC holds the first-mover advantage into the 'non-veg food specialty food segment' that gives them free reputation. Customers, especially children who are used to going to KFC as a treat or reward from their parents or grandparents, are not going to want to go to other restaurants they’ve never heard of .The brand name is already established .Also, there is already a large variety in the numerous western-style dining places in United Kingdom, such as McDonald’s, Pizza Hut, Domino's and Subway, and any new fast-food entrants would just be presenting something very similar to what’s already there. While small neighbourhood restaurants generally have low barriers to entry, these are the barriers to entry for similar restaurant businesses to enter the fast-food chain market.
Buyer/Supplier Bargaining Power
The customers of KFC, especially as individual buyers, have almost no bargaining power because if only one customer threatens to no longer eat at KFC, the store is not going to lower its price because the cost of losing one customer is not very great. The suppliers like the buyers, have very