Vrio for Kfc - 933 Words

VRIO Framework of KFC VRIO framework use to find out the core competencies or sustainable competitive advantages which are helping firm to operate profitably in long term. For KFC, we try to find out its competitive advantage where we used four key components which help to identify in what KFC have competitive advantage compare to its competitors. Resources Valuable Rare Inimitable Exploited by the Organization Brand ïÆ' ¼ ïÆ' ¼ ïÆ' ¼ ïÆ' ¼ Recipe ïÆ' ¼ ïÆ' ¼ ïÆ' ¼ ïÆ' ¼ Experience ïÆ' ¼ X X ïÆ' ¼ Location ïÆ' ¼ X X ïÆ' ¼ Price ïÆ' ¼ X X ïÆ' ¼ Advertisement ïÆ' ¼ X X X Through the use of VRIO framework we have found that brand value and the recipe of making food in KFC are its competitive advantages. The reason behind these- Brand: The brand or the logo of Kentucky Fried Chicken, the†¦show more content†¦Because, the recipe is a trade secret it has been rare with and very much inimitable. And because it is so valuable the organization has exploited the recipe but very slightly, by introducing new menu items. Value Chain of KFC Fig.: KFC’s Value Chain Porter Value Chain Analysis of KFC: In our value chain analysis we broke down the total service provided by KFC in several set of value creating activities and found out in which stages KFC add value through exceeds the cost of the activities, thereby resulting in a profit margin for KFC. †¢ The primary value chain activities are: Inbound logistics: Chicken, buns, bread, oil, flour, spices, vegetables, corn flour, potato and other raw materials. Operations: Cleaning, mixing raw materials with herbs and spices, Storing, etc. Outbound Logistics: [the warehousing and distribution of finished goods- but what I shud write not sure] Marketing Sales: Promoting offerings product through billboards, posters, low price offers, etc. Service: KFC provides after sales service by serving their foods to customers. Inbound logistics and operatios, these two stages, are the key primary activities which give KFC the cost advantage with superior quality. By doing so, these stages ensure KFC’s profitability. Support Activities: Procurement: Transcom Foods Limited has obtained the franchise rights of KFC. The franchise agreement provides for buying approved equipment, service ware andShow MoreRelatedKentucky Fried Chicken : Kfc1838 Words   |  8 Pages Kentucky Fried Chicken Kentucky Fried Chicken (KFC) is based in Louisville, Kentucky and is focused around a special recipe created by Colonel Harland Sanders. KFC is in the quick service industry and offers consumers a variety of recipes with focus on Sanders’ secret recipe. The company is owned by Yum! Brands. Yum! Brands owns other western quick service firms such as Taco Bell and Pizza Hut. KFC offers consumers a relatively limited variety of menu items mainly focused on chicken products specializingRead MoreMcdonald s Value Chain Analysis Essay3860 Words   |  16 PagesMcDonald s, which include, Food Innovations, Customer Satisfaction, Regulatory Standards, the Intensive Training Program, Quality Products, Franchisee Relationships, and Supplier Relationship. Each of these resources/capabilities were analyzed using the VRIO framework to assess the competitive position that they put McDonald s in. Additionally, an analysis was performed on the value chain of McDonald s to aid in identifying whi ch of these resources and capabilities actually lead to a competitive advantageRead MorePizza Hut : A High Power Of Buyers Essay1800 Words   |  8 PagesHut faces a very intense competition against other competitors of the same industry. Because there are so many other food business, Pizza Hut’s prices have to be very low to attract buyers, therefore decreasing profit. Chapter 4 Internal Analysis: VRIO Framework: Valuable - Yes, Pizza Hut’s products and services are better than other competitors. Also, with many store locations worldwide, Pizza Hut is able to lower their cost, therefore, increasing their profit. Rare - Yes, even though pizza is