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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 675 |
Essay's paper body
The maturation of the restaurant industry increases competition making it difficult of a company to control cost. Therefore, customers are not sensitive to price because of the amount of substitutes available to them. It would be difficult for KFC (or any other restaurant) to justify higher price. There are virtually no switching costs for the customers...
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There are virtually no switching costs for the customers. This hurts profitability because of customer demands can increase a company’s cost. Restaurants would not be able to pass the cost to the customer, again because of intense competition and substitutes. For instance, KFC was forced to develop awareness for its chicken sandwich when McDonald’s introduction of the sandwich...
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General points of the essay
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