KFC SWOT Analysis

{ Posted on May 06 2010 by adam | 26,491 views}

Strengths

Kentucky Fried Chicken is a very famous chain of fast food outlets that started from Louisville, Kentucky. The company is became a sub-brand of Yum Brands in the year 2002 and benefitted greatly from the position and brand value of Yum foods. In the past the KFC chain of restaurants grew at a very fast pace and has become today one of the largest chicken restaurants chain in the world.

KFC has been known to be a leader in the chicken restaurant segment with an annual sale of more than a billion dollars. The KFC as a brand is well established in the dining out as well as delivery service provider in the fast food industry.

Despite the entrance and presence of many competitors in the fast food industry the company was able to retain its large loyal customer base because of its unique offering. Due to this reason the KFC ranks highest when it comes to chicken restaurant chains, convenience restaurants and variety food provider.

KFC currently has more than fifty percent of the market share in fast food industry and the new entrants are finding it very difficult to capture any of its share.

Over the years KFC has gained enormous recognition as a reputable brand for fast food and has globally positioned itself well in the industry.

Weaknesses

When other companies in the chicken industry were trying to increase its market share and were not able to compete well in the market or retain its customers.

Also the special paper buckets that is now used by the KFC for delivering large sized orders was originally introduced by Wendy’s restaurant

The company has entered so many markets in the past in the United States that its growth rate was about only one percent an year.

The company is said to not to pay attention to its resource and development.

Opportunities

KFC has been trying to enter new markets and position itself in some of the hard to enter markets like the South America. With more investments the company can definitely make its position stronger in the food industry.

More spending on the resources and development as well as introducing new food items and products the company can increase its market share and profits.

Threats

The competitors of KFC have successfully captured a large market share. According to findings McDonalds has about 35 percent of the share in Sandwich Segment whereas the Burger King owns about sixteen percent of the market share in fast food industry. The local restaurants in different countries where KFC has presence pose a threat to the company.

The baby boomers formed the major part of the loyal customers of the company that now have ages between 35 to 50 years and are likely to move towards healthier foods.

The other entrants in the industry are continuously improving and trying to enter new markets and increase their market share and sales.

With the lifestyle of people changing due to growing awareness about healthier food people now look for something healthy, low calories and delicious at the same time.

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