Maintaining Cross-Border Competitiveness

Maintaining Cross-border Competitiveness

        There are numerous methods of maintaining competitive advantages in quick service restaurants across the globe that have differentiations in preferences from their customers. One of the major techniques that Tricon has been practicing to sustain a competitive advantage in international markets is allowing restaurants to modify menu items that pertain to the local culture and demand. This customization of menu items in various countries across the globe includes eliminating pork in Muslim countries, having chicken spicier/crispier in Asian countries, etc. According to Stern (2010), localized customization has been recognized as a crucial strategy in the global fast-food business. These modifications to menu items ensure that every customer will have a dish that they can enjoy more thoroughly. When KFC expanded into the Chinese marketplace, the company had to change its recipes to suit the regions of particular locations in order to maintain a competitive advantage (Bell & Shelman, 2011). In all of the countries worldwide, there is some degree of local customization to better serve customers and gain greater market share.

        Another technique of having a competitive advantage in QSR in the global market is by providing superior service to customers. Tricon developed a “mystery guest” program that evaluates restaurants for how they deliver their core products to the day-to-day customer. The mystery guest evaluations had to be modified in selective countries due to their religions and societal norms. For example, in Asia, making eye contact is viewed as being rude and intruding. The executives at Tricon had to modify how they evaluated certain aspects of their operations for them to maintain and gain a competitive advantage in the global marketplace. According to Bell & Shelman (2011), “many other companies have followed KFC’s example in customer service, but KFC’s training program functions exceptionally well, churning out a continual stream of new managers”.

The technique of improving customer service has collectively contributed to differentiating Tricon from their competitors to gain a competitive edge internationally.

        Marketing is also another critical method of maintaining competitiveness on a cross-border platform. Getting the image of a North American brand to customers across the globe can be an enormous task. According to Ghemawat & Khanna (2009), animated cartoons were Tricon’s best prospect for marketing because they can be used across a wide spectrum of countries with voice-overs that can be modified to suit local languages. Marketing Tricon’s restaurants throughout countries worldwide to gain a competitive edge can be difficult due to different religious views, quality of advertising and cost. In the end, Tricon needs to communicate to the public the same message all over the entire world within their restaurants while also customizing marketing for certain areas. This can display to the customers on a cross-border basis on how the restaurants share the same standards/practices while also adapting to local cultural values.

...