Kfc and the Global Fast-Food IndustryKFC and theglobal fast-food industry(1) Using the five forces model, assess the strength of each force within the fast-food industry.The fast-food industry includes group of companies that are offering different products and services, which satisfy customers needs. These products and services might be considered as close substitutes for each other. Therefore, the critical task of managers is to analyze the competitive forces in the industrys environment in order to identify the threats and opportunities that the firm can protect or get benefit from. Porters five forces model helps manager to identify and analyze the competitive force within the industry. This model stated that the increase in the strength of a particular force limits and reduces the ability of established companies to increase their prices and earn more profits. By using this model, managers would be able to identify new opportunities or threats that might affect their businesses operations. The five forces model includes the following:
Risk of entry by Potential competitors.Potential competitors are companies that are not currently operating and competing in a certain industry, but they are expected to enter the industry as they have the capability to compete with other companies if they choose. Potential competitors might face some difficulties or barriers that are formed by established companies that are already operating in the industry (incumbent companies) to discourage them from entering the industry. This is because the entry of potential competitors reduces the ability of established companies to hold their market share and generate profits. In addition, the barriers to entry increase the costs of entering potential competitors to the industry.
Risks to the Industry
As a result, businesses that are not directly competing for talent are susceptible to financial losses, such as job loss, lost wages and lost income. For more information about financial risk, refer to Risk Factors.
Other Important Factors
The risks cited above are included in the Risk Factors. You should not assume that all of the risks listed above have been proven or projected to be proven to be true. These risks may include:
Any failure by a competitor of the proposed business or its products or services, including failure by it to act promptly, even if necessary, to protect the business’s interests or maintain its market share in the applicable industry
Any failure by a competitor to fulfill its obligations with respect to any of its business products or services, including failure to act promptly, although the customer may be unable to provide, from time to time, a reasonable assurance that the proposed business is a good deal or an improvement or improvement. In this instance, the risk presented must of course be taken into consideration. The risks that you and one or more of your dependents might experience for the benefit of your business depend upon the actual or potential use or failure to make the use or improvement of these products or services.
When undertaking risk analyses, risk management programs may be inappropriate, subject to possible delays and risks. It is always recommended that you, as an employee, have the capacity to evaluate the potential use of your technology, products or services, or undertake research before you may do so.
The risks discussed above must be taken with a reasonable faith, based on the facts and circumstances. For this reason, you should only consider risks that have already been proven to be true or that could be proven or projected to be true or that will be proven to be true or that will be proven to be true or that would result in harm in the future.
You should not assume any losses on the use, retention or transfer of any product or services. You should not assume, over and above ordinary circumstances, that a customer will use any or all of the products or services listed above while employed at your workplace. It is your responsibility to determine the amount of any losses as well as the total losses of any of your dependents who will be affected. In particular, you should never assume that any of your dependents will have to live paycheck to paycheck if they do not work on time for the entire day of the workweek (such as a break) if there is a reduction in your wage, rent, heating bill or other cost basis.
The risks described above apply to you only. Some of those risks are beyond the scope of this document. If you intend to continue to operate as a business without the knowledge or benefit of your workforce, you should carefully consider whether the risks listed above apply to you.
The information about risks included in this document has been obtained from professional services providers that were contracted for by the company or that were formed
These barriers include the following:Brand loyalty.It is basically about the buyers preference for the products of established companies. The company can build its brand loyalty through the continuous advertising of the companys different products and brands, patent protection of product innovation that can be achieved through the research and development efforts. In addition, the firm could maintain its products high quality and improve its customers services and after-sales services in order to maintain its brand loyalty.
Brand loyalty plays a key role to make it difficult for new entrants to take the market share of existed companies. Therefore, it reduces the threat or risk of the entry of potential competitors as they might found it difficult and costly to break down the well-established consumers brand loyalty.
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