Kfc Swot Analysis

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KFC SWOT ANALYSIS Strengths  Brand Equity  2nd Only to McDonald’s in Foreign Sales $550M  Strong Cash Flows  Generate $1B each year  Very strong Internationally UK, Middle East, Thailand, China, Japan,

Korea, Mexico

 Strong Franchise and License Fee revenues for cash flow.  Interactive relationship marketing  Strong trademarks recipes  Ranks highest among all chicken restaurant chains for its convenience and menu variety.  Largest multibranded restaurant in the world 100 KFC and Pizza Hut combos 600 KFC

and Taco Bell combos

Weaknesses  Recent drop in sales for KFC  Failed to rank in top 20 in growth in 2000.  Same Store sales declined  Lack of point of scale scanning system  Admitted inability to provide quality service  Lack of knowledge abut their customers  Lack of relationship building with employees, customers and suppliers i.e.


 Question of over franchising leads to loss of control and quality  Lack of focus on R&D Opportunities  Growth of 18-24 age demographic  Increase in U.S. median income  International beef scare from mad-cow and hoof and mouth disease  Home Meal Replacement Market will exceed an estimated $577 billion by


 Targeting to growing ethnic markets – Asian American and Hispanic  New Leadership  Domestic markets  Updating restaurants  Balanced menu  Customer focus  Increase delivery service Threats  Rated 83 out of 100 in terms of competitiveness  Increasing wage rates directly affect menu prices  85% annual employee turnover for fast –food market  Supermarkets and new competitors threaten HMR market  International Exchange Rates  Health Trend away from fried foods  Changing customer demands  Quality of Service Focus Finger licking good!
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