Competitive Strategy Analysis: Walmart and KFC Comparison Report

This report provides a comparative analysis of the competitive strategies employed by Walmart and KFC. It begins with an introduction to Walmart, highlighting its evolution from Sam Walton's customer-centric approach and its significant impact on the retail industry. The report delves into Walmart's use of the CAGE framework for international business, demonstrating how it identified profitable regions and adapted its strategies accordingly. It also examines Walmart's strategies, such as leveraging scale economies and building stores in small towns to create entry barriers. The report then shifts its focus to Kentucky Fried Chicken (KFC), examining its global presence and adaptation to local tastes. It discusses KFC's menu strategy and its success in China, where it has incorporated Chinese cultural elements into its business model. The report also highlights KFC's employee policies, including flexible working hours, recognition programs, and training opportunities. The conclusion summarizes the key differences and similarities in the competitive strategies of both companies.

Walmart and KFC Competitive Strategy 1
WALMART AND KFC COMPETITIVE STRATEGY
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Walmart and KFC Competitive Strategy 2
Introduction
It is required that one choses two organization for the purpose of development of this
paper. In further context one needs to make an effective analysis of this two organizations by
looking at some of the strategies and theories they apply. Therefore, in my case I choose
Walmart and Google.
Walmart Company
My first focus will be on Walmart. Walmart as it is popularly known evolved from
Sam Walton who had great goals and values about customer service. Mr. Walton had the
belief of leadership via service. The belief of genuine administration relies upon willing
administration which was enter rule in working of Walmart, this choice drove the
organization which made it go for more than 50 years (Corporate, 2011). The reason behind
me choosing Walmart is because it changed the face of retail business. Additionally, the
aspect of Sam Walmart doing the unexpected by building his business by offering low prices
and great service. The aspect of the strategies it applied is also one that made me focus on
Walmart.
Now let’s look at how Walmart was able to achieve its current standing in the retail
corporation system. First, let’s consider the CAGE for international business aspect. Scholars
such as (Pacelle, 2016) argued that Walmart would battle when they exited Arkansas and got
to places like Alabama which was 600 miles from Arkansas. They, we further discouraged
that their strategy would fail in New Jersey and New York. But, the management to the
organization believed that using the CAGE aspect their business model would perform well
both at home and overseas despite the sceptic’s back home. As of 2004, we observe that
Walmart was able to make high profits in countries that resemble United States along
administration, geography, culture and economic dimension, whereas in countries without

Walmart and KFC Competitive Strategy 3
these aspects became unprofitable. Therefore, the CAGE aspect enabled them in identifying
the regions that they should create investments in, as for those countries with different kind of
CAGE elements they had to look for other strategies. Hence, consideration of the CAGE
aspect has made them relevant in the retail business industry.
The company had also developed some strategies for running their business which has
made them very competitive in their industry. For instance, in acquiring Wal-Mart
acknowledged scale economies in getting on account of its more than 50 percent bit of the
general business position in discount retailing. Notwithstanding the way that Wal-Mart may
be the best customer for buyer thing creators, it deliberately did not end up being too much
dependent on any one shipper (no single vender constituted more than 4 percent of its general
purchase volume). Further, Wal-Mart had impacted its around 3,000 venders to have
electronic "catch ups" with stores to diminish general demand area and dealing with costs for
itself and its vendors (Casadesus-Masanell & Heilbron, 2015). This made them aggressive
contrasted with their adversary associations.
Another business innovation they had was that, in the early years, Wal-Mart's
procedure was to construct extensive rebate stores in little country towns. The areas brought
about lower working costs, particularly finance and lease. Contenders, for example, Kmart,
which were centred on extensive towns with populaces of more than 50,000, overlooked
Wal-Mart (Varadarajan, 2017). This fabricated powerful section hindrances as it turned out to
be exceedingly uneconomical for contenders to enter locales Wal-Mart had officially soaked.
Hence, this strategy made them to remain relevant till now the in the retail industry.

Walmart and KFC Competitive Strategy 4
Kentucky Fried Chicken (KFC)
Kentucky Fried Chicken (KFC) tends to be one of the remarkable fast food outlets
worldwide with the subject "It's finger lickin' unbelievable. It was established by Colonel
Harland. It has incomprehensible tasting chicken which has ended up being synonymous with
KFC and has been delighted in by individuals now and into the not all that far off
comprehensive. The piece of the having a framework which empowers them to work
comprehensive is the reason for me picking it as a logical examination affiliation.
Concerning the system being used. KFC applies the impediment structure while
plotting the menu in KFC as a strategy to deal with oversee consent to the district taste and
culture by other than offering meat based things, for instance, ground sirloin sandwiches or
kebabs, pork based things, for instance, ribs and other nearby fragment. On the other hand, in
light of the present market change in China, KFC have acclimatized the Chinese social parts
into its western affiliation style, thusly confining a between social affiliation mode. China's
advantageous cash related progress has opened its entryway for the fast-food industry and
draw in KFC to utilize avoidance framework to let Chinese to have the opportunity to
encounter western way of life with standard Chinese social implanted in it (Curtis and
McCluskey, 2007). At appear, there are more than 1,000 restaurants in China and they are
right now connecting at the rate of regular 200 stores for reliably. In 2010, Yum! Brand, the
parent relationship of KFC Corporation expects 36% of their general $2 billion working
central focuses from 3700 diners in China. The achievement of KFC in China has lead Yum!
Brand Inc to be the best remote relationship in China with 40% bit of the general business
beating contenders such as McDonalds (Turner, 2011). Hence, the affiliation mode applied
KFC has shown that the connection has the versatility to fit in with different social and
customary changes making them critical in the sustenance business.

Walmart and KFC Competitive Strategy 5
The company also has efficient business policies for their employees. To start with, in
regards to inspiration factors, KFC gives its representatives adaptable working hours which
may affect staff inspiration. In addition, KFC is so mindful about the significance of
acknowledgment which is viewed as one of the greatest desire of workers; subsequently,
KFC for the most part perceives its representatives by complimenting for better execution
joined by pay rises, welcoming them to decent places outside, sorting out festivals for
enormous accomplishments, and other group building exercises, and so forth. As to and
development, KFC additionally executes preparing programs for its workers and gives them
advancement openings (Hossain, 2012). Second, in connection to cleanliness factors, as
specified above, KFC offers advancement and improvement approaches for its staff.
Moreover, KFC dependably tries to make agreeable condition amongst supervisors and
representatives. Chief's criticism is likewise viewed as one of the powerful factors to the level
of worker inspiration.

Walmart and KFC Competitive Strategy 6
References
Bell, D.E. and Shelman, M.L., 2011. KFC's radical approach to China.
Hossain, E., Han, Z. and Poor, H.V. eds., 2012. Smart grid communications and networking.
Cambridge University Press.
Turner, M., 2011. Diploma in Business and Administrative Management.
Curtis, K.R. and McCluskey, J.J., 2007. Consumer preferences for western-style convenience
foods in China. China Economic Review, 18(1), pp.1-14.
Casadesus-Masanell, R. and Heilbron, J., 2015. The business model: Nature and benefits.
In Business models and modelling (pp. 3-30). Emerald Group Publishing Limited.
Pacelle, W., 2016. Humane Economy. HarperCollins Publishers.
Varadarajan, R., 2017. Innovating for sustainability: a framework for sustainable innovations
and a model of sustainable innovations orientation. Journal of the Academy of Marketing
Science, 45(1), pp.14-36.
Corporate, W., 2011. History timeline.