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KFC Swot Analysis

KFC SWOT ANALYSIS The document analyzes the strengths, weaknesses, opportunities, and threats for KFC. The key strengths are its strong brand equity as the 2nd largest foreign sales of any restaurant and strong cash flows. Opportunities include growth in target demographics and expanding international markets. Weaknesses include recent declines in sales and same store sales. Threats include increasing wages negatively impacting prices and competition from supermarkets and new fast food competitors.

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rizalstarz
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71K views

KFC Swot Analysis

KFC SWOT ANALYSIS The document analyzes the strengths, weaknesses, opportunities, and threats for KFC. The key strengths are its strong brand equity as the 2nd largest foreign sales of any restaurant and strong cash flows. Opportunities include growth in target demographics and expanding international markets. Weaknesses include recent declines in sales and same store sales. Threats include increasing wages negatively impacting prices and competition from supermarkets and new fast food competitors.

Uploaded by

rizalstarz
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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KFC SWOT ANALYSIS

Strengths
Opportunities
 Brand Equity
 2nd Only to McDonald’s in Foreign Sales  Growth of 18-24 age demographic
$550M  Increase in U.S. median income
 Strong Cash Flows  International beef scare from mad-cow
 Generate $1B each year and hoof and mouth disease
 Very strong Internationally  Home Meal Replacement Market will
UK, Middle East, Thailand, China, Japan, exceed an estimated $577 billion by
Korea, Mexico 2020
 Strong Franchise and License Fee revenues  Targeting to growing ethnic markets –
for cash flow. Asian American and Hispanic
 Interactive relationship marketing  New Leadership
 Strong trademarks recipes  Domestic markets
 Ranks highest among all chicken restaurant  Updating restaurants
chains for its convenience and menu variety.  Balanced menu
 Largest multibranded restaurant in the world  Customer focus
100 KFC and Pizza Hut combos 600 KFC  Increase delivery service
and Taco Bell combos

Weaknesses
Threats
 Recent drop in sales for KFC
 Failed to rank in top 20 in growth in  Rated 83 out of 100 in terms of
2000. competitiveness
 Same Store sales declined  Increasing wage rates directly affect
 Lack of point of scale scanning system menu prices
 Admitted inability to provide quality  85% annual employee turnover for fast
service –food market
 Lack of knowledge abut their customers  Supermarkets and new competitors
 Lack of relationship building with threaten HMR market
employees, customers and suppliers i.e.  International Exchange Rates
Chick-fil-a  Health Trend away from fried foods
 Question of over franchising leads to  Changing customer demands
loss of control and quality  Quality of Service Focus
 Lack of focus on R&D

Finger licking good!

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