Strategic Management Case – Chick-fil-A
Who are the major competitors and what is the company’s position relative to those competitors? Also, review the market of current and potential customers for the industry.
Chick-fil-A is among the top companies specializing in fast food. The main competitors are McDonald’s, Wendy’s, Taco Bell, and Fogo. The company has maintained a top position in the market and is ranked number one based on quality followed by McDonald’s, KFC, Fogo de Chao, Taco Bell, and Wendy’s. The company’s top position has enabled it to grow its customer share to over 1600 customers, thus enhancing its sustainability. However, the company could increase its market share by venturing into new markets dominated by competitors such as KFC and McDonald’s. For instance, it can adopt the franchise strategy used by McDonald’s to increase its market presence and reach many customers.
What is important for customers in this market?
` Chick-fil-A operates in the fast-food market that is characterized by constant changes in customer preference and consumption habits. One of the most important things for the customers is quality. Customers in the fast-food market prefer high-quality products that give them value for their money. The second important thing is the price. The fast-food market is dominated by many companies offering similar products that are distinguished by price and quality. In some instances, customers may have a preference for highly-priced fast food based on the assumption that quality dictates price, and in some instances, they may ignore quality as long as they can afford the food.
What appeals might be used to attract consumers within the market?
One of the appeals that might be used to attract customers within the market is quantity. The company may focus on packaging food in reasonable portions that customers to attract more customers and maintain customer loyalty. The second appeal is the packaging. The company can package its products in reusable and renewable materials to attract customers and demonstrate its concern for environmental sustainability.
Study the targeted customer base and strategies used to build customer relationships. What strategies are currently being used?
Chick-fil-A’s customer base is middle-class individuals, thus setting a friendly process to build customer relationships. The company also offers high-quality food to ensure that customer satisfaction is maintained. The current strategy being used is the integrated consumer-focused strategy which relies on high-quality products, and a great-tasting, value-centered and family-friendly environment.
What customer relationship strategies would you recommend
According to Kumar (2019), proper customer engagement practices require giving customers a chance to express their satisfaction or dissatisfaction with products and services. One of the customer relationship management strategies. This strategy could include creating online chat rooms that customers can use to share their concerns about the products being offered and recommend improvement areas (Ahmed, 20120). The second strategy is encouraging customers to review the company’s products to determine customer satisfaction levels.
References
Ahmed, A. M. (2012). Customer relationship management through communication strategy. Successful Customer Relationship Management Programs and Technologies, 145-155. https://doi.org/10.4018/978-1-4666-0288-5.ch011
Kumar, V. (2019). Customer engagement and marketing practice. Handbook of Research on Customer Engagement, 4-19. https://doi.org/10.4337/9781788114899.00006
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Strategic Management Case – Chick-fil-A
Identify the strategic groups within the industry market for Chick-fil-A.
Who are the major competitors and what is the company’s position relative to those competitors? Also, review the market of current and potential customers for the industry. What is important for customers in this market? What appeals might be used to attract consumers within the market? Study the targeted customer base and strategies used to build customer relationships. What strategies are currently being used? What customer relationship strategies would you recommend?
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