Essay

DILEMMA OF KFC AND CHICKEN HARTZ BUFFET FRANCHISE HOLDER

Introduction

The case revolves about dilemma facing the KFC and Hartz Chicken Buffet (HCB) franchise holders on their own business. Both outlets located at Sarawak Plaza (SP), Kuching and became direct competitor among them for food outlet operation based.

Identified and Analysis Problems

The problems faced by KFC and HCB franchise holder stated as below:

1. Abang Fatul as the Assistant Manager of the KFC branch at SP concerned about their slow performance and decrease sale since April 1998. That was the same year where their direct competitor, Hartz Chicken Buffet established in front of them. Therefore, he should come up with a solution to address the problem.

2. Whilst the Manager of Hartz, En. Golokin said competitor is a vital factor that needs to be considerate for besides to create new ideas and menus to ensure their well performance.

The SP branch able to generate 10% net profit averagely since their initial operation on early 1990s but failed to maintain their achievement due to the rivalry from their direct competitor, HCB. Contrary with the HCB, they achieved a proud accomplishment since their started operation. So, definitely they want to defend their performance besides produce competitive services and products.

Both may use and review the strengths, weaknesses, opportunities and threats (SWOT) of their competitor in order to understand the problem sources and to find the solution as well.

Analysis elements | KFC | HCB |

1. Strenghts | * Good reputation / well known * Unlimited hours per visit * 24 hours time operation * Take away option available * No fee charge subject to unfinished food | * Various types of menu * The only one in Sarawak, even Borneo * Used buffet concept * Affordable price * Refill is allowed |

2. Weaknesses | * Limited menu * The price charged depend to set taken * Refill is not allowed | * Limited to two...