Help to paraphrase the whole paragraphs (Similar wordcount) 2) The bargaining po
ID: 419524 • Letter: H
Question
Help to paraphrase the whole paragraphs (Similar wordcount)
2) The bargaining power of supplier
KFC can easily change the suppliers, this is because there a lot of suppliers available for KFC raw materials and most of KFC product is chicken. KFC was having some issues with their raw chicken supplier in the year 2004. The supplier had done something horrible which didn’t slaughter the chickens according to the Islamic way. It results for KFC to terminate the supplying from the accused supplier and look for another supplier for raw chickens. This shows that the bargaining power for KFC is high since they can get another supplier than the supplier that they used to have business with. Besides that, KFC was also having a contract with Pepsi.co to supply the carbonated drinks. In the contract, KFC had promised that they will only stick with them. However, Pepsi.co do supply products to KFC's main competitors. This has lowered KFC's bargaining power of supplier.
3) The bargaining power of customers (buyers)
The bargaining power of customers is high considering that they have lots of choices to be made. As mentioned above, the existent of other fast food restaurants does increase the bargaining power of customers. Customers can go to any fast foods restaurant such as Mc Donald's and Pizza that offered more affordable prices especially for students and people have lower income. It will be a big loss if the customers start to change their loyalty and starting to decline. To attract their customer back KFC, they have to start reducing the price of their product and give more promotion for lunch and dinner treat. Other than that, Mc Donald's has been developing products such as "Ayam Goreng McD" to compete with KFC. Due to the new invention, some of the customer has change they mind and fall in love with the new product from Mc Donald's. Although KFC has been developing products that can compete with Mc Donald's such as changing their segmentation for attracting customers KFC vegetation food items. However, they are still losing a large number of customers due to the above reasons. KFC have to strengthen their customer brand relation with new and different innovative inventions in food products and quality services.
Explanation / Answer
2) The bargaining power of supplier
Considering the main products of KFC are chicken-based, KFC has a high bargaining power with suppliers as chicken is widely available in all the countries. For example, KFC was having some issues with their raw chicken supplier in the year 2004 as the supplier didn’t slaughter the chickens according to the Islamic way. KFC has terminated the supplier and replaced with another supplier. This highlights the bargaining power of KFC with the raw chicken suppliers Besides that, KFC was also having a contract with Pepsi.co to supply the carbonated drinks. As it is a fixed-term contract, KFC has lesser bargaining power compared to the raw chicken suppliers as the drinks are also supplied for other fast food restaurant chains.
3) The bargaining power of customers (buyers)
The bargaining power of customers is high as they have a number of choices to be made with various fast food restaurants like McDonald's, Pizza Hut etc. that offered food at more affordable prices especially for consumers of lower incomes and students. It will be a loss in revenue if consumers change their loyalty. Hence, to attract customers back to KFC, they need to reduce their prices or offer promotional discounts etc. Its competitor McDonalds has been developing products like "Ayam Goreng McD" similar to KFC which can take back some of KFC's customers. Though KFC has been developung products that compete with McDonalds, still it has been losing customers due to increased competition. Hence, KFC needs to strengthen their brand relation with innovative products and quality services.
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