Recommendations of Kentucky Fried Chicken (Japan) Ltd Case Solution

Home >> Hbr >> Kentucky Fried Chicken (Japan) Ltd >> Recommendations

Recommendations of Kentucky Fried Chicken (Japan) Ltd Case Study Help

On the basis of above internal and external analysis of the business together with the evaluation of various options, the business is recommended to consider alternative 3. As alternative 3 would permit the business to expand in worldwide markets with no decrease in its regional profits and any wear and tear of its market position. By considering Alternative 3, the company could maintain its shop experience and brand individuality. However, it might also consider alternative 2 that might allow the business to access the marketplaces with no possible investment. The business might pursue alternative 1 which would enable the business to focus on possible international markets rather than the local markets but as the business is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in company's income. The business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Kentucky Fried Chicken (Japan) Ltd Case Solution Stores

Expansion towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the worldwide presence of the company. However, the closing of domestic stores could extremely affect the incomes of the company as above 90% of its shops are located locally and closing those stores would ultimately reduce the revenues of the company. Moreover, the business has a long term market position in United States which can not be created quickly in the new markets. The alternative would assist the company to broaden in international markets in addition to the elimination of issues raised in its regional markets associated with its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of brand-new worldwide markets.
• Increase in income from global markets.
• Removal of problems related to diversity.
• Revenue diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competition.
• Differences in cultures could led to a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Kentucky Fried Chicken (Japan) Ltd Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position an extreme risk to the market share of company. In this situation the company might think about presenting Click and Recommendations of Kentucky Fried Chicken (Japan) Ltd Case Help shops. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand name Individuality
• Removal of the great store experience.
• Danger of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the business could consider, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of revenues of the company. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Lowering competition danger
• Access to the world markets
• Expanding customer base
• Big Revenues
• Expedition of brand-new worldwide markets.
• Increase in profits from worldwide markets.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems associated with diversity.
• Differences in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.