(PDF) E-Commerce Business Models

Introduction
The Chicken Chicken Chain of the KFC Corporations is operated in the United States and
internationally, also known as the Kentucky Fried Chicken. The company offers the
following products: sandwiches, desserts, drinks, sauces, pickles, buttermilks, biscuits, etc.;
big box meals; popcorn and kids' foods. And chicken items including hot chicken wings and
chicken sandwiches. The company also offers its restaurants. Founded in 1952, KFC
Corporation resides in Louisville, Kentucky. As a subsidiary of KFC Holding Co,KFC
Corporation operates.
E-Commerce business model
The company has a website to communicate with its customers. The site is only
informational for presenting the menu, news and promotions and also provides guidelines for
locating a customer franchise site locally.. The products sold by this business are strictly sold
by the associated franchising restaurant, which has food prepared for purchase by its
customers. There is therefore no sales static in relation to the online sales success rate which
can be calculated. There are no measures to share customer securities online. The protection
and accuracy of the web site against content, advertising and viral protection from external
intruders is essential for observing online security.
As e-commerce concerns, B2C is not actually sold for the information provided on the site.
However, the information provided will lead to business in the restaurant being sold to
customers personally. The reason I choose this business was because I enjoyed the food of
this company and could speak to a director who was allowed to talk to me. There are three
forms for e-commerce, but the enterprise has many ways of dealing with it.. B2C can lead to
online sales as the consumer's enterprise, also known as the customer. But it can also be
online information, because it concerns certain businesses, to help drive sales. For customer,
there is C2C, which can also result in personal sales, such as yards sales in Grieg's list. Sales
for customers are possible. With the B2B, the main companies only decide to sell their
products to other companies to the consumers. For example, major industries are selling their
goods to retail outlets. This method eliminates the small item sales for the larger industries
and allows them to focus on sales of production verse.
Strengths and Weaknesses
The global franchise and electronic commerce business model of KFC is well managed. A
major force of the brand is the worldwide presence of the KFC website. In modern times,
people expect that order is now available for them if they go to branded websites.
Technological strategies of KFC go far beyond the capacity of the website to order food.
Thanks to Yum Brands' parent company investment in third-party provider Grubhub, the
company is increasing delivery. And the company has tested to increase its driving
efficiency, including the potential use of artificial intelligence to order. Technology is a major
front in the ongoing struggle between restaurant chains to improve comfort.. Particularly
important for taking and delivery. Technomic and the Association for National Restaurants
have just said that almost 60 percent of the transactions involve taking over. In addition to
convenience, this services have other advantages. For example, online ordering comes with

an average 60% check, which is "highly incremental," so that consumers can most probably
order a meal online. Online ordering.
Delivery also includes a higher average control. In about 2.600 of its 4,000 locations, KFC
operates the service. By improving the website services, this service would be improved and
increased. The company should plan to test digital menu panels with artificial intelligence to
adapt the process. That would help keep the Chain pace with larger fast-food chains like
McDonald's, which were aggressive when digital menu boards were added to their drive. All
this supply provides information for online ordering and more technology. KFC should do
more along the road.
Competitive strategies
According to the Porter Generic Strategy model, organisations can gain competitive
advantage by providing three fundamental strategic options. Cost management,
differentiation, and focus are the main ones.
In order to deal with the competitive pressure, it has adopted a combination of cost
leadership, differentiation and focus strategies. The growth targets for customer base and
sales growth are reached by concentrating on three broad strategy streams with the most
appropriate intensive development strategies (cost, differentiation and focus). KFC's intensive
strategies for growth include market penetration, product development, market development,
and diversification to reach its objectives.
Cost Leadership
Cost management strategy means that costs are reduced to a competitive advantage. The main
generic strategy KFC employs is cost leadership in different consumer markets. The main
objective of this strategy is to maintain market leadership through the efficient management
of the value chain. This approach allows KFC to expand its market share by focusing on the
middle class, which represents the largest part of the overall consumption mix in most
countries. Middle-class consumer prices generally matter, and the best way to meet the needs
of this consumer segment is by management of costs. KFC focuses on accessible and
affordable products around the world which contribute to brand awareness and high sales
growth and a strong competitive advantage. Apart from charging low prices, KFC often
offers discounts and coupons, which aim to achieve the sales objectives and deal with
competitive pressures by its closest rival. The company also offers a high performance price.
The aim of this discount and promotional campaigns is to enhance brand popularity and
promote consumption.
Differentiation
Another generic approach that is most often used in building a competitive advantage is
differentiation. To achieve growth targets, KFC uses differentiation in conjunction with cost
management strategy. The adoption of differentiation as a generic secondary strategy permits
KFC to extend its client base by emphasising the unique product characteristics. The strategy
of KFC is intended to differentiate and address the growing health concerns of consumers, by
introducing innovation. After studying the changing interests of the consumer, KFC has

extended its range of products to distinguish itself from competitors and broaden the scope of
the opportunities in the industry. The combination of differentiation and cost management
helped KFC create a strong and loyal base for its customers. KFC positions its product
offerings in a way that stands out and differs from the alternatives available through
differentiation generic strategy. As a strongly based, experienced brand, it uses distinguishing
as a tool to reduce the stress of other brands.. Heavy investment is made to distinguish KFC
and others in marketing, advertising and celebrity support. Extensive experience, the oldest
brand and strong presence throughout the world are several factors which are highlighted in
the marketing and communication strategies of the company. Apart from these, the brand
logo also serves as the basis for differentiation. The unique brand logo has established a
strong consumer brand image. Although the brand underwent numerous revisions, the
essence was the same and also a major differentiating factor.
Focus
Focus is the third generic competitive strategic that encourages firms to expand the narrowly
targeted segments to focus on resources. If companies adopt the focus strategy, they serve
specific markets and build on niche marketing in order to achieve their competitive
advantage. KFC adopts the focus strategy in both low-cost and high-value terms. The
cheapest approach is adopted by meeting the needs of a market segment in the niche at the
lowest prices possible. While this approach is the best value focus, the emphasis is on the
taste, the size and design of the product that best meets the needs and requirements of
customers. KFC revises their branding strategies and continues to change the product design
and packaging in accordance with the psychological expectations and maximise value for
money by focusing on product qualities.
Digital Business strategies
Digital strategy focuses on technology to improve business efficiency, be it new products, or
re-imagining processes. It sets the direction an organisation will take to create new
technological competitive advantages and tactics to achieve these modifications. In particular,
KFC has used a push and pull strategy whereby customers can be drawn into their products.
It's known for 'finger laughing well' in his company jingle. They are using it to influence and
inform their customers of the product they sell. KFC platforms are the business strategy:
●Email marketing
●SMS marketing
●Social media marketing
●Content Marketing
●Print and Outdoor Marketing
KFC should focus on extending healthier choices to customers by including further veg
articles and calorie-free products. This would help to increase the target market, thereby
increasing the business' sales.
Digital Marketing strategies