BCG Matrix of KFC
The need for strategy, in order to expand its existing product in very promising markets for KFC is very essential. KFC, along with McDonalds, and other major fast food chains have dominated the American continent as well as else where. Since the1950’s when the founder of KFC had a dream, of building an empire in the fast foodmarket, the company has undergone lots of changes. The company has changedownership; it has taken over from Pepsi and passed over to Tricon, which owns Pizza hut,Taco bell and others. Nowadays, KFC, still dominates the chicken fast food industry while has stores inmore than 100 countries operating vast profits. (De Witt 'et al.2004a) Although, due toincreased conditions of life, and differentiation of the life style of the population aroundthe world, there is still a lots of room for expansion, especially in countries with large population, and high development rate. KFC using the BCG matrix and SWOT analysisto analyze what is the current position of the company and identify that the company hasthe potentials to growth in fast food market.In the late 1960s the Boston Consulting Group, a leading management consultingcompany, designed a four-cell matrix known as BCG Growth/Share Matrix. This tool wasdeveloped to aid companies in the measurement of all their company businessesaccording to relative market share and market growth.The BCG Matrix made a significant contribution to strategic management andcontinues to be an important strategic tool used by companies today. The matrix providesa composite picture of the strategic position of each separate business within a companyso that the management can determine the strengths and the needs of all sectors of thefirm. The development of the matrix requires the assessment of a business portfolio,which include an organization’s autonomous divisions ( activities, or profit centers).The BCG or growth- share matrix...
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