SWOT ANALYSIS ON Yum! Brands, Inc

abhishreshthaa

Abhijeet S
Yum! Brands, Inc. or Yum! is a Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, Wingstreet, and Long John Silver's restaurants worldwide, and A&W Restaurants (excluding A&W in Canada).

Based in Louisville, Kentucky, it is the world's largest fast food restaurant company in terms of system units—over 36,000 restaurants around the world in more than 110 countries and territories.In 2008, Yum!'s global sales totaled more than US$11 billion.


Yum! was created on October 7, 1997, as Tricon Global Restaurants, Inc. an independent company, as a result of a spin-out from PepsiCo, which owned and franchised the KFC, Pizza Hut and Taco Bell brands worldwide. Because of the company's previous relationship with Pepsi, Yum! Brands has a lifetime contract with PepsiCo, with notable exceptions being the contract of A&W Restaurants with Dr Pepper Snapple Group to be the exclusive restaurant provider of A&W Root Beer, and the contracts of franchisees such as HMSHost and college-operated locations with Coca-Cola which override Yum's lifetime PepsiCo contract, along with some scattered KFC franchises across the United States which continue to maintain Coke fountain rights.

Yum! president David C. Novak is a director of J.P. Morgan Chase and became chief executive officer of Yum! Brands on January 1, 2000, and chairman of the board on January 1, 2001. He is also a member of the Yum! executive/finance committee.

Strengths

* Cost advantage
* Loyal customers
* Market share leadership
* Strong management team
* Strong brand equity
* Strong financial position
* Unique products
* High quality product

Weaknesses

* Bad communication
* Diseconomies to scale
* Over leveraged fiancial position
* Low R&D
* Low market share
* No online presence
* Not innovative
* Not diversified
* Poor supply chain
* Weak management team
* Weak real estate
* Weak, damaged brand
* Ubiquitiouegory, products, services

Opportunities

* Financial markets (raise money through debt, etc)
* Emerging markets and expansion abroad
* Online
* Product and services expansion
* Takeovers

Threats

* Competition
* Cheaper technology
* Lower cost competitors or imports
* Maturing categories, products, or services
* Price wars
* Product substitution
 
To formulate marketing strategy there is a need of swot analysis. Swot analysis provides the perfect picture about what are the market trends and what are the product people needed the most. Well, this is the long and lengthy process but effective and productive. Swot analysis also allows organisation to convert their weakness into strength .
 
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