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THECONTINUEDDOMINANCEOFKENTUCKYFRIEDCHICKEN
CORPORATION
1.Cageframeworktheory:Driversofinternationalization(YIPframework)
KentuckyFriedChickenCorporationconsideredthefollowing
internationalizationdrivers;
Tradeliberalization-Thisleadstoinsignificanttradebarriers,significant
investmentopportunitieswhichfacilitatedcross-borderoperations(Banalieva&Sarathy,
2011p.593).
Thedevelopmentoftechnology-Technologyhasturnedtheworldintoaglobal
village,forinstancecommunication/informationtechnologiesfacilitatesworkingata
distanceforinstancewithemployeesfromdifferentcountries(Jones,2019p.15).
Profitadvantage-Corporationsprefertradinginforeigncountries,because
internationaloperationsarewaymoreprofitableasopposedtodomesticbusiness
operations.Internationalmarketingissubjecttocompetitivedrivers,marketdrivers,cost
drivers,andgovernmentdriversasdefinedbyProf.GeorgeYip.Inmarketdriversfor
instanceKentuckyFriedChickenCorporationhastheavailabilityforglobalcustomers
thattheyserveandincostdrivers,somecountriesoffercheaplaborforthem(Dopuch,
2017p.615).Governmentdriversinthiscontextofferlowertariffsandsometimesnon-
tariffbarriers.Incompetitivedrivers,thecompetitorshavetheopportunitytocross-
subsidizetheirbusinessoperations
Localcompetition-Tradeandeconomicliberalizationcausesanincreasein
competitionfromdomesticcorporationsandforeigncorporations,tocounterthis
competitionthesecorporationsdecidestocarryouttheiroperationsinternationallyto
evadecompetitions.Incompetitivedrivers,thecompetitorshavetheopportunitytocross-
subsidizetheirbusinessoperations(Pitts&Lagnevik,2016p.2-3).
Governmentregulationsandpolicies-Governmentdriversinthiscontextoffer
lowertariffsandsometimesnon-tariffbarrierstoforeigncorporations.Corporationsmay
alsomigratetoforeigncountriesduetoregulationssuchastheenvironmentallaws.
Politicalstability-Corporationslikestocarryouttheiroperationsinpolitically
stablecountries.
2.Disruptiveinnovationmodel
Thisistheemploymentoftechnologiesandinnovationstomakeexpensiveand
complicateditemslesscheapandavailabletobiggerspectraofthemarket(Krotov&
Junglas,2018p.44-45).Theemploymenthasmadeiteasyfornewentrantstoenterthe
casualdiningmarket;thisissobecausecurrentlytheinternetisanindispensabletoolfor
lotsofpeopleglobally.Newentrantscanusetheirsmartphonedeliveryappstoaccessthe
internettoorderfoodandhavethemdeliveredattheirdoorsteps.Thechannelusedto
attractcustomersisrewardingthemwhenevertheymakeanorderviatheirsmartphone
apps(Ganesh&Malavika,2020p.6-7).
Technologyandinnovationmakesoperationsmoreefficientwhenever
corporationsprovideacashlessenvironmentforcustomers;thisisbecausemany
customerspreferpurchasingitemsinacashlessenvironment(Stephens&Barbier,2021
p.366-377).Inaddition,thisistheapplicationoftechnologyandinnovationsthatare
employedtomakeexpensiveandcomplicateditemslesscheapandavailabletobigger
spectraofthemarket(Krotov&Junglas,2018p.44-45).Thisapplicationhasallowed
newentrantstoenterthecasualdiningmarket.Thechannelusedtoattractcustomersis
rewardingthemwhenevertheymakeanorderviatheirsmartphoneapps(Ganesh&
Malavika,2020p.6-7).Theoperationswillbemoreefficientwhenevercorporations
provideacashlessenvironmentforcustomers;thisisbecausemanycustomersprefer
purchasingitemsinacashlessenvironment(Stephens&Barbier,2021p.366-377).
References
Banalieva,E.R.andSarathy,R.,2011.Acontingencytheoryofinternationalization.
ManagementInternationalReview,51(5),p.593.
Ganesh,K.S.andMalavika,J.,2020.AnEmpiricalResearchonCustomerExperienceand
SatisfactiontowardsOnlineFoodOrderingSystemandFoodAggregatorsServices.AMBER
ABBSManagementBusinessandEntrepreneurshipReview,11(1),pp.6-7.
Jones,M.V.,2019.Theinternationalizationofsmallhigh-technologyfirms.Journalof
Internationalmarketing,7(4),pp.15.
Krotov,V.andJunglas,I.,2018.RFIDasadisruptiveinnovation.Journaloftheoreticaland
appliedelectroniccommerceresearch,3(2),pp.44-45.
Pitts,E.andLagnevik,M.,2016.Whatdeterminesfoodindustrycompetitiveness.
Competitivenessinfoodindustry.London,pp.2-3.
Stephens,R.andBarbier,M.,2021.Digitalfooding,cashlessmarketplacesandreconnectionin
intermediatedthirdplaces:Conceptualizingmetropolitanfoodprovisionintheageof
prosumption.JournalofRuralStudies,82,pp.366-377.
Dopuch,N.,2017.Aperspectiveoncostdrivers.AccountingReview,pp.615.