Different business firms use generic strategies models to increase their competitiveness in different industries they operate in. Three retail firms will be analysed to find out specific business strategies they use to increase their profit revenues. This paper will discuss different business strategies used by McDonald’s, Pizza Hut and KFC in their operations.
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These firms are reputable multinationals operating in various countries across the world. McDonald’s is a popular fast food chain whose brand is one of the most recognisable in the world (Lassar & Kulkarni, 2009, p. 3). KFC mainly sells chicken products in different global markets. Pizza Hut sells different types of pizzas to consumers across the world. It has more than 20, 000 franchises in different global regions.
McDonald’s has mainly used market and product differentiation strategies to increase its competitiveness in different regions. For instance, in China and India, it uses culture- specific market strategies to appeal to its consumers. In India, the firm sells vegetable burgers that do not contain any beef, pork or chicken.
There are many Indian consumers whose religious and cultural practices do not allow them to consume meat products (Lassar & Kulkarni, 2009, p. 9). The firm also uses its strong branding concepts to appeal to consumers by offering them value added services to build strong relationships with them. The firm has several franchises in different parts of the world which offer consumers localised service experiences which conform to their lifestyles and consumption habits.
KFC uses focus strategies by developing innovative products which serve clients’ needs effectively. The firm mainly sells chicken and fried foods targeting consumers in urbane locations. KFC has relied on the strong brand value of its products to expand into other foreign markets, where chicken and other fried foods are consumed on a large scale.
For instance, KFC’s Chinese operations have been well received by consumers in the country. KFC specialises in few product categories which help it sustain strong relationships with consumers in its target markets. It has cordial business relationships with its suppliers who provide raw materials used in its operations at a low cost. As a result, the firm has been able to improve its value chain functions by reducing costs incurred in internal procurement processes (Vrontis, 2003, p. 284).
Pizza Hut sells different types of pizzas to consumers in different markets across the world. The firm uses product differentiation strategies by specialising in narrow product segments which have high market demand. This has proven popular with customers who are attracted to the firm’s unique pizzas and croissants. Pizza Hut offers both restaurant and take-away services to its consumers, who benefit from different service experiences that conform to their lifestyles and interests.
The firm constantly develops new products targeting foreign markets to increase its penetration rates. This has helped it attract new customers in different regions across the globe. The firm’s stores have a good ambience which encourages customers to spend more time to enjoy exclusive service experiences. As a result, this has increased the firm’s profits (Vrontis, 2003, p. 289).
In conclusion, these three retail firms have been able to use their different generic strategies to appeal to their specific target markets. They have strong brands that communicate their product attributes more effectively. As a result, this has made their products more competitive in different markets they are sold in.
Lassar, W. & Kulkarni, S. (2009). McDonald’s ongoing marketing challenge: Social perception in India. Online Journal of International Case Analysis, 1 (2), 1-19.
Vrontis, D. (2003). Integrating adaptation and standardisation in international marketing: The adapt stand modelling process. Journal of Marketing Management, 19 (3-4), 283-305.