Academic Master

Business and Finance

KFC Company Analysis

There are numerous products in the consumer market that are being used by people on daily basis. KFC burgers are consumed in America as the main food item on daily basis. It has a very extensive market in America and is also operating internationally. Due to its established brand worth in America, it has been considered as good food company by consumers. There are different factors in the market that affect its demand and supply. This paper will discuss the market of KFC burger; factors that influence its current and future demand and supply as well as related effects of demand and supply of burgers on its equilibrium price.

There are different factors that affect the demand and supply of product and these include consumer income levels, technology, advertisement, the trend towards healthy eating, availability of substitute, quality of food as well as bargaining power of suppliers. During economic downturns, there is less demand for these KFC burgers. Technology is an important factor in the increase and decrease of the demand of burgers as now with the use of technology now consumers have an access to lots of information related to the company; location, prices, free delivery as well as a comparison of product with other available products.

Moreover, with the enhancement of effective advertising, the demand for burgers can also be increased. Use of social media for advertising purpose can be an effective strategy. Now in the current world, people have gone more health conscious and there is a trend towards healthy eating. If there is more information related to the burgers indicates that these are healthy for eating then demand will increase and in case there is a negative image of the product in public, then demand will decrease(Bassett et al., 2008). Demand can also be an increase or decrease if there is an increase in the availability of substitution for KFC burgers. If people are more health-conscious, then they may switch towards more healthy food. Similarly, competitors may take it as new product idea and may develop a product that can replace KLFC burger in context of healthy food.

Also, high quality of burgers increase demand and low quality will not retain the customers in the long run. Also, the supply of KFC burger is affected by changes in prices of resources as well as increasing bargaining power of suppliers. If there are fewer suppliers in the market then there have more power with respect to the availability of recourses and raw material. In case more competitors enter the market, supply of burgers will also affect. The availability of resources become less and business face problems in managing the supply of products.

Changes in demand and supply affect equilibrium price of KFC burger. If there is a decrease in demand or there is an increase in supply then equilibrium price will fall. There will be more products in the market in comparison to demand and this will lead to decrease in the price of the product. Similarly, if there is an increase in demand or there is a decrease in supply then equilibrium price will increase. In this case, there is a requirement for more products but this is not available in required quantity and this has led to the increase in price. Moreover, in near future, there can be more changes in demand and supply of the product. Technology is the main factor that can increase the demand as well as the supply of product. With the technology, access to more and more customers as possible and also it’s easy to deliver them product thus increasing the demand and supply of product in future. Also, use of social media in advertising can change the demand and supply of product considerably.


Bassett, M. T., Dumanovsky, T., Huang, C., Silver, L. D., Young, C., Nonas, C., … & Frieden, T. R. (2008). Purchasing behavior and calorie information at fast-food chains in New York City, 2007. American Journal of Public Health98(8), 1457-1459.



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