Kinetic advantage can be regarded as added value with distinguishable attributes that a franchise business has gained through strategic movement in its industry or market. This added value should also be difficult for other businesses to duplicate in order to be considered as a kinetic advantage.
The advantages are not limited in number, in fact the more kinetic advantages a franchise business has, the more competitive the franchise becomes. This important factor to highlight with kinetic advantage, is that these factors cannot be considered static. Just because your business has a kinetic advantage today, does not mean that it will always be there. So the emphasis has to be placed on continuous development, as this is the difference between a business that is successful for a single moment in time, and a business that builds a legacy.
The kinetic advantages you aim to foster should be decided based on giving motivation to the market on why they should choose you over the other competitive franchise businesses.
Successful franchise and business brands such as KFC, McDonald’s, Coca Cola, BMW, Nike, Apple, Amazon, Google, Oros did not grow overnight. It took years of trial and error, learning from mistakes, and correcting approaches, trying to discover and build the right kinetic advantages that would be able to sustain their brand for the next 20 to 50 years. How do these companies manage to run their franchise or business models so successfully for so many years, yet remain competitive in an ever changing market?
- Effective monitoring of the market trends and understanding what the market needs, when, where, why and how
- An open relationship with the customer
- Investment in customer research
- Effective study and analysis on the lifetime value of the customer
- Building a careful communication strategy using this information
- Have a thorough and clear understanding of own brand identity, brand capabilities, weaknesses and strengths
- A focus on innovation
- Building a level of consistency in the minds of their customers
- Delivering on brand promises
- Constant performance evaluation of all departments contributing to the marketing efforts such as operations, sales, client service, and product development.
Kinetic advantage is also considered as a unique selling proposition, which will be able to be built, created and even developed with clear consideration of the above listed factors. It is critical to note that, areas with a great need from the market, are the better areas to prioritise.
The journey of a franchise is not one of perfection by any means, but it is a journey of staying flexible, being open to change, and staying sensitive to the requirements of your customers. There are no failures on this journey, only lessons. As an example; if customers switch over to competitive franchises due to lack of credible quality customer service, then there must be extra priority given by coming up with efficient problem solving methods, better retention strategies, delivery on promises, offering lessons to staff on customer engagement skills and knowledge expertise that your competitor cannot easily offer.
With more than 66 years of trading, KFC has not encountered any franchise business that has successfully duplicated its chicken secret spice approach to business. The secret spice is one of KFC’s kinetic advantages that has not been successfully copied, and resultantly has significantly set it apart from its competitors. It’s careful development of a strongly recognisable brand, together with a franchise model that has been developed to the smallest detail and makes it easy for new shop owners to operate has lead to the great success they enjoy today. Since the first franchise was opened in 1952, KFC remains relevant within the South African market and is still opening more franchises to this day.
When franchise businesses begin offering significant value that is sustainable, then loyal customers emerge.