While KFC focuses on international markets, its competitor, Chick-fil-A, focuses on the domestic U.S. market. What is the reason behind this strategic difference?
A) KFC has more financial resources than Chick-fil-A since it is a publicly traded stock company.
B) Chick-fil-A has a larger customer base and number of outlets in the U.S. market than its competitor KFC.
C) KFC wants to follow a differentiation strategy, and Chick-fil-A wants to pursue a cost-leadership strategy.
D) Chick-fil-A is part of a large conglomerate, whereas KFC has more flexibility to pursue a geographic diversification strategy.

Question

Quizplus · Accepted Answer

KFC is a publicly traded stock company, as part of Yum Brands; Chick-fil-A is privately owned. Public companies are often expected by shareholders to achieve profitable growth as fast as possible to result in an appreciation of the stock price and thus an increase in shareholder value. In contrast, private companies generally grow slower than public companies because their growth is mostly financed through retained earnings and debt rather than equity.

While KFC Focuses on International Markets, Its Competitor, Chick-Fil-A, Focuses