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PORTER'S FIVE FORCES KFC

1.rivalry amongst existing firms


McDonald ranked as the most favorite fast food in egypt and follow by
KFC and Pizza Hut.
McDonald that has been developed since 1980 has become a closest
rival of KFC.
KFC has implement loyalty program to attract their consumers
attention to their brand. They have providing their customers a card to
kids. The card is useful to obtain a discount in KFC

2.THE THREAT OF NEW ENTRANT


There a lot of substitutes product offered to the consumers. Albaik
Fried Chicken which is almost similar to KFC has grabbed the
customers attention to switching their taste to something that are more
fresh than KFC and to find something difference.
Albaik Fried Chickens main product is chicken. So, the existence of
Albaik Fried Chicken has become a new rival to KFC.
The Albaik Chicken was founded in 2014 while KFC was found in 1980.
3. THE THREAT OF SUBSTITUTE PRODUCT
Farroga also sell the product/service almost same as KFC.
Tekka serves chicken dishes in mild and spicy flavors and offers sides
such as mashed potatoes or French fries and rice. Most combo meals
come with a side order , salad and drink
The price for both fast food is almost same.

4. SUPPLIER POWER
There are a lot of suppliers available for KFCs raw materials. KFC can
easily switch their supplier to another supplier since the materials need
in the process of producing KFC is easily to get such as chicken.
In 2004, KFC has some internal problems and issue regarding of their
raw chicken supplier. KFCs supplier was found doing something
horrible when slaughtering the chicken.
KFC decide to terminated the contract between them and thus find the
new supplier to replace them. So, chicken supplier cant easily increase
the price for chicken since their supplier power is low.
Other than that, KFC also binding a contract with Pepsi.co for
supplying carbonate water to KFCs customer.
In the contract, KFC has promised to Pepsi.co that they wont have any
business related with carbonate drinks such as Coca Cola .
In the same time, Pepsi do supplies their drinks to the competitors of
KFC. This is lowering down the supplier power of KFC.
PORTER'S FIVE FORCES KFC
5. Buyer power
The factor of a lot of competitors such as McDonald, KFC, Pizza Hut
and Burger King. The loyal and potential customer of customer starting
to declined and this caused a big loss to the KFC.
Customer can go to any fast food restaurants that offered more
affordable price especially to students which requiring a lot of money to
survived.
To attract their consumers back, KFC start to decrease their prices and
give a discount of their products to the consumers.
KFC reward My KFC Card Programed to their loyal customer. By this
card, the customers are able to get a discount as much as 5% and also
exclusive VIP offers.
So, the buyer power of KFC is high when this is proved that the
consumers able to influence the priced when they has many choices.

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