KFC SWOT in China
SWOT Analysis: Market
Internal:
Strengths:
the company owns and franchises more than 15,500 outlets in more than 100 countries (great diversification, expanding rapidly in high growth areas (i.e. China)
By 2006, KFC had 1,700 restaurants in China, more than tripling in five years. Profit and sales figures saw increases of over 25 percent for some quarters, while comparable figures domestically were 1 and 2 percent. KFC significantly outsold McDonald's in China, and by 2006, KFC was opening a new Chinese outlet every 22 hours. Yum!'s boss David Novak told Business Week (October 30, 2006) that he hoped to eventually have as many KFC restaurants in China as in the United States. "There is no one else in China expanding at this level with the returns we are generating," he told the magazine. Thus while the U.S. market had continued to slumber for KFC in the years it had been run by Tricon/Yum!, overseas KFC was a powerful force.
300 new outlets opening over the next three to five years.
The chicken chain, which already has 760 outlets in the UK, says it is doing good business during the recession as people are drawn to cheaper food
successful innovations instituted in the company's international operations, was seen as a way for KFC to enter new markets. Delivery, drive-through, carryout, and supermarket kiosks were up and running. Other outlets in testing were mall and office-building snack shops, mobile trailer units, satellite units, and self-contained kiosks designed for universities, stadiums, airports, and amusement parks (KFC growing into more contemporary role)
By 2002, Tricon had developed 1,375 multibrand stores. Tricon changed its name in 2002 to Yum! Brands, and it acquired two more restaurant chains, the seafood restaurants Long John Silver's, and the hamburger and root-beer chain A&W. This opened up some more possibilities for multibranded stores.
OLD FAVORITES, SAME LOCATIONS - The use of "multiple-branding" - whereby several restaurant
Internal:
Strengths:
the company owns and franchises more than 15,500 outlets in more than 100 countries (great diversification, expanding rapidly in high growth areas (i.e. China)
By 2006, KFC had 1,700 restaurants in China, more than tripling in five years. Profit and sales figures saw increases of over 25 percent for some quarters, while comparable figures domestically were 1 and 2 percent. KFC significantly outsold McDonald's in China, and by 2006, KFC was opening a new Chinese outlet every 22 hours. Yum!'s boss David Novak told Business Week (October 30, 2006) that he hoped to eventually have as many KFC restaurants in China as in the United States. "There is no one else in China expanding at this level with the returns we are generating," he told the magazine. Thus while the U.S. market had continued to slumber for KFC in the years it had been run by Tricon/Yum!, overseas KFC was a powerful force.
300 new outlets opening over the next three to five years.
The chicken chain, which already has 760 outlets in the UK, says it is doing good business during the recession as people are drawn to cheaper food
successful innovations instituted in the company's international operations, was seen as a way for KFC to enter new markets. Delivery, drive-through, carryout, and supermarket kiosks were up and running. Other outlets in testing were mall and office-building snack shops, mobile trailer units, satellite units, and self-contained kiosks designed for universities, stadiums, airports, and amusement parks (KFC growing into more contemporary role)
By 2002, Tricon had developed 1,375 multibrand stores. Tricon changed its name in 2002 to Yum! Brands, and it acquired two more restaurant chains, the seafood restaurants Long John Silver's, and the hamburger and root-beer chain A&W. This opened up some more possibilities for multibranded stores.
OLD FAVORITES, SAME LOCATIONS - The use of "multiple-branding" - whereby several restaurant