Reference no: EM132915846

In 1991, Kentucky Fried Chicken changed its name to KFC in an attempt to broaden its image away from fried chicken. KFC management had noted the societal trend toward healthier eating and was worried that its signature item was in decline. The company responded to this trend by introducing "Colonel's Rotiserie Gold" chicken but was forced to drop it after the roasters kept breaking down. Not wanting to give up, management later introduced an "Oven-Roasted" line of chicken. After promoting the product for only three months, CEO David Novak admitted that the roasted line was a disappointment "we don't think we came out of the box in the roasted category with the best effort that we could have" explained Novak. Deciding to focus on its signature fried chicken items, management aired a new pool of television commercials extolling the health benefits of its fried chicken-only to be charged by the Federal Trade Commission of making false claims. Nevertheless, the company continued its preparations for a new line of salads being introduced later in 2004.

1. Based on the information presented in the above case, what would you recommend to the management of KFC? Should it continue to experiment with healthier menu items? What resources and competencies are needed to adopt a health food strategy?

2. Does KFC have any core competences? Are any of these distinctive (better than the competition)?

3. As strategic management consultant, you have been asked to conduct the industry analysis for KFC in the UAE.

4. Discuss the main threats that KFC is facing in the UAE market and the main opportunities KFC can take advantage of in the UAE?

5. Does KFC have any competitive advantage? How secure is KFC's competitive advantage? What are the barriers to imitate here?