Competitive and Strategic Model of Operating in a New Markets

Entry Strategy and Strategic Model of Operating in New Markets
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Entry Strategy and Strategic Model of Operating in New Markets
Companies usually have plans to grow their business within the local market and beyond. Therefore, companies need to formulate and implement a growth strategy that will allow them to identify and develop new markets at local and global levels. This growth strategy ensures that companies can overcome any barriers when expanding into new markets, especially internationally (Motohashi, 2015). Such barriers are a result of differences as a result of physical distance, cultural distance, administrative elements, and economic gaps. The growth strategy should also encompass an entry strategy that can allow the company to expand into a new market seamlessly. This is especially important because often, companies that are venturing into a new market internationally must meet certain requirements (Motohashi, 2015). These requirements can be complex and companies prefer working with local partners to make the process easier and economically sound. Thus, having a strategic plan on the mode of entry is a crucial part of business expansion. As indicated by (Mas-Ruiz, Ruiz-Conde, & Calderon-Martinez, 2018), many companies usually use their past strategic model of operation when venturing into new markets. In some cases, they also copy what their competitors have done to successfully expand into a new market. This shows that expansion into new markets is filled with uncertainties due to the risks involved. Companies are always looking for ways to cushion themselves while pursuing growth opportunities in international markets. This paper will explore KFC Corp (Kentucky Fried Chicken), an American multinational fast-food company operating in the hospitality industry, which is currently engaged in international markets and is still pursuing new international market opportunities. Also, the paper will explore Finland as a new international market opportunity for KFC. A business environment analysis will be conducted and a viable entry strategy will be recommended.
KFC: Company Overview
KCF Corporation is an American multinational fast-food chain of restaurants with its headquarters in Louisville, Kentucky. KFC was founded over 70 years ago by Colonel Harland Sanders, who wrote KFC’s famous recipe on the back of his Kitchen door (KFC, n.d.). Over the years, KFC grew from that small kitchen and is now one of the largest fast-food chains in the world. It has more than 23, 000 outlets and is operational in over 140 countries. Yet, KFC continues to expand and grow by establishing more outlets in new markets and by also adding more outlets in existing markets.
Vision and Values
KFC’s vision is to “serve finger-lickin' good food (KFC, n.d.a).” This vision shows that KFC not only wants to serve food but also to offer good, tasty foods to its customers. This vision is supported by very important values and house rules that guide KFC’s day-to-day operations. The values include passion, pride, betterment, and friendship. KFC has “ a passion for food” which is served with “pride” (KFC, n.d.a). Also, KFC requires employees to be th...