abhishreshthaa
Abhijeet S
SWOT ANALYSIS ON KFC Corporation : KFC Corporation (KFC), founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand and operating segment, termed a concept[2] of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc.
KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare.
The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991.Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the U.S. as part of a new corporate re-branding program; newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. Additionally, Yum! continues to use the abbreviated name freely in its advertising.
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.
KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare.
The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991.Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the U.S. as part of a new corporate re-branding program; newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. Additionally, Yum! continues to use the abbreviated name freely in its advertising.
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.
Last edited by a moderator: