Kentucky Fried Chicken (KFC)
Every organization has its topmost competitors regardless of their products. Mostly, in the fast-food industry, several companies are delivering almost the same services, including; KFC, McDonald’s, Dominos, Subways, Starbucks, among others. Kentucky Fried Chicken (KFC) has been competing with McDonald’s more many years. There are four main corporate-level strategies, including; concentration strategy, vertical integration strategy, diversification strategy, and merger and acquisition strategy. However, to gain a competitive advantage, KFC has to follow a specific corporate policy, that is, diversification strategy to enhance effective sales of margaritas.
Diversification strategy is also known as horizontal integration. This strategy enables an organization to achieve its core goals and objectives through the use of conventional and harmonizing technologies and markets. KFC is highly reputable and widely known for its quality and sanitary products since it uses the same techniques in every branch around the globe (Belarmino et al. (2019)).
Diversification strategy will help KFC in implanting improvements and innovations and giving a disclosure about the health concerns of the consumers. Diversification will work hand in hand with the cost leadership of the company to establish a loyal and strong consumer base. Diversification will enable KFC to stand out among its competitors since it will be able to reduce external pressures led by its competitors. Diversification can be achieved through unique advertisement and marketing strategies different from those of its competitors (Genoveva, & Siam, (2017)).
Moreover, diversification will enable KFC to achieve game theory in the market. Game theory is referred to as the theoretical perspective for comprehending social occurrences among the major competitors (Chukwuemeka, & Onuoha,(2018)). This would be achieved through effective decision making towards gaining a competitive advantage.
Conclusion
Consequently, KFC has many customers from all walks of the world. To establish and maintain its competitive advantage in the corporate level, it has to use diversification strategy in the decision-making process.
