KFC SWOT Analysis

Length: 3 Pages 734 Words

Strengths KFC has a very long history and has the most recognizable brand in chicken. With over 50% of the market share it becomes very difficult for new companies who may want to enter the market. KFC has name recognition around the world and has been globally positioned for many years. KFC’s secret recipe of 11 herbs and spices has made it the leader in chicken for the last fifty years. KFC sells three recipes: Original recipe, Extra Crispy, and Tender Roast. Weaknesses The many sales of KFC during the 1970’s and 1980’s lead to a very confusing direction and took the focus of the company off of its original strategy. During the 1980’s and 1990’s KFC struggles were much do to the inability to bring new products to the market quickly and it’s innovation of new products. KFC fell behind the market in new products and was copying other fast food chains to stay competitive. KFC changed its strategy in the late 1990’s, which included adding items to its menu. KFC then in an effort to address its declining market share began building smaller restaurants in non-tra Continue...

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KFC really needs to take a long hard look at who their target market is and market towards that market. The loss of market share and slowing growth also was due to the many mergers they went through during a limited time period. KFC still is known best for its "fried" chicken, which would put them at a disadvantage in the health conscience market. The merger with PepsiCo was met with large cultural issues as the KFC employees were used to the previous strategy of a laid-back, self-governing environment, to an environment who demanded tighter control over operations. Opportunities Since Yum! Brands Inc. As we will address further in this report KFC is continuing to expand in foreign markets, which is one of Yum!s goals for growth. The consumer continues to have many choices when it comes to fast food restaurants. The dinner houses like Applebees and Red Lobster are gaining in popularity. KFC established units that sold both Taco Bell and KFC or KFC and Pizza Hut. ditional outlets, airports, shopping malls, and hospitals. After PepsiCo spinned off KFC and Tricon Global Restaurants took over, Tricon"tms top management recognized some of the problems with KFC and began to sell company-owned restaurants back to franchisees. They offered drive thru and carry out units only. Other segments of the industry are turning to new menu offerings. KFC"tms strategy for growth, KFC began expanding in foreign markets as far back as the 1950"tms and are currently the 3rd largest fast food chain as of 2000Threats The largest threat KFC is faced with is the restaurant industry as a whole.


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