Preview

SWOT Analysis of KFC

Good Essays
Open Document
Open Document
1836 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
SWOT Analysis of KFC
Strengths
Strengths can be found internally in a company and can be used to the company’s advantage. The strengths identified are as follows:
1. KFC's secret recipe.
The secret recipe has long been a source of advertising, and allowed KFC to set itself apart. Also, KFC was the first chain to enter the fast-food industry, just before McDonald's, which opened its first store a year later, and the "secret recipe" was the initial home replacement strategy.
2. Name recognition and reputation.
KFC's early entrance into the fast-food industry in 1954 allowed KFC to develop strong brand name recognition and a strong foothold in the industry. The Colonel is KFC's original owner and a very recognizable figure, both in the U.S. and internationally, in their new logo. In fact, in the fourth annual LogoValue Survey, done by The Schecter Group, the KFC logo was the only one which significantly enhance the brand's image (Logos add…1).
3. PepsiCo's success with the management of fast food chains. PepsiCo acquired Pizza Hut in 1977, and Taco Bell in 1978. PepsiCo used many of the same promotional strategies that it has used to market soft drinks and snack food. By the time PepsiCo bought KFC in 1986, the company already dominated two of the four largest and fastest-growing segments of the fast food industry (Wright, p.424-426).
4. Traditional employee loyalty.
"KFC's culture was built largely on Colonel Sanders' laid back approach to management" (Wright, p.433). Before the acquisition of KFC by PepsiCo, employees at KFC enjoyed good benefits, a pension, and could receive help with other non-income needs. This kind of "personal" human resources management makes for a loyal workforce (Wright, p.434).
5. Improving operating efficiencies by reducing overhead and other operating costs can directly affect operating profit.
Due to the strong competition in the US, the fast-food chains are reluctant to raise prices to increase profit. Many of the chains are turning to

You May Also Find These Documents Helpful

  • Good Essays

    KFC (Kentucky Fried Chicken) is a chain of fast food restaurants which primarily focuses on the selling of original recipe fried chicken and other foods such as burgers, wraps, potato & gravy and coleslaw. The company was originally founded in 1952 by Colonel Harland Sanders, and since then it has expanded to over 9,000 stores in 86 countries. It first opened in Australia in Guilford, Sydney in 1968, there are now over 600 stores Australia wide. Since 1997 KFC became part of the YUM!Brands Corporation which owns other fast food stores such as Pizza Hut and Taco Bell.…

    • 689 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Kfc Research Methodology

    • 1740 Words
    • 7 Pages

    The first and foremost objective of this research is to find out the strategies adopted by KFC in India and what were the various reasons that influced them.It can also be related to their failure during the entrance .KFC's survival in a huge multi-cultural market will also be discussed when other fast food giants such as Mc Donalds , Pizza Hut and Nirulas were dominant in the Indian market.After finding out the reaons and analysing the data related to the reaons for success in the Indian fast food market for KFC.…

    • 1740 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Marketing Mix KFC

    • 1009 Words
    • 3 Pages

    KFC (Kentucky Fried Chicken) is a chain fast food restaurant based in Louisville, Kentucky in the United States of America. KFC was founded by Colonel Harland Sanders in 1952. He became a well-known personality throughout thousands of KFC restaurants or outlets worldwide. Quality, service and cleanliness represent the most critical success factors to the KFC’S global success. Food, fun and festivity are the success and what is KFC all about. Leading the market since the inception, KFC provides the ultimate chicken meal for the chicken lovers all over the world. KFC has more than 11,000 restaurants or outlets more than 80 countries and territories around the world.…

    • 1009 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    kfc analysis

    • 310 Words
    • 2 Pages

    •They would insure that KFC stays hygienic and the image of the company is good.…

    • 310 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    KFC which comes under Yum Brands has the second best global brand in the fast food industry. They stand strong till today for many reasons like their trade secret of original chicken recipe with 11 herbs and spices, they have over 4,000 outlets in China itself where they get maximum of their revenues from, they offer more products from the other Yum brands and satisfy more customers. KFC gained a lot of negative publicity because of the criticism received from PETA over the conditions of raising chicken; they were serving chicken wings with kidney and also got into the news for untrustworthy suppliers. More and more people are opting for a healthy living but KFC foods are high on calories. They lack menu innovation and thus losing a lot of customers.…

    • 467 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Krispy Kreme Swot Analysis

    • 2014 Words
    • 9 Pages

    Strengths are characteristics of the business or project that give it an advantage over other competitors. As a global…

    • 2014 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    The history of KFC came about due to a very innovative and driven man named Harland Sanders, the creator of KFC in 1952. In order for Harland Sanders to gain prospective franchisees he traveled across the United States to find the potential buyers. In the 1960’s KFC became the first fast food chain to go international. “Colonel Sanders” began to franchise and took over two hundred restaurants and home retail outlets across the US. In 1963, the number of KFC franchises rose from 200 to 300 franchises that created a profit of $500 million. In 1964 the Colonel sold the business to Jack Massey and John Brown Jr. for $2 million with a per year share salary of $40,000 and as the times changed this salary later rose to $200,000. The Colonel still had a say in KFC’s public relations aspect of the company. In 1966, KFC was listed on the New York Stock Exchange and is still to this day found on the New York Stock exchange under the ticker symbol and branded company named YUM!. In 1969, KFC signed a joint venture with Japan, which helped in the expansion of KFC internationally. By 1971, KFC had 2,450 franchises and 600 company owned. KFC began operating in forty-eight countries and formed a merger with Heublein. Heublein did not have much experience in the restaurant business, so they left KFC manager’s in charge of restaurant management. In 1977, the opening of new KFC operations slowed down to twenty franchisees per year. In 1982, the new slogan “We do Chicken Right” came about. This slogan was created in an attempt to make KFC successful. New buildings were being created in order to show off KFC’s new image to lure customers and prospective buyers back into the Kentucky Fried Chicken Corporation. Along with the new slogan, RJ Reynold’s merged with Heublein. RJ Reynold’s was a larger industry that could help KFC’s success, but RJ Reynold’s quickly sold their portion of KFC to Pepsi Co. for $841 million, making them the leading market share in…

    • 1271 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Introduction of Kfc

    • 352 Words
    • 2 Pages

    Today there are more than 500 KFC Restaurants nationally and still counting. It is one of the largest fast food corporations in the world. Great tasting chicken has become identical with KFC and Malaysian has enjoyed from the time when. The Original Recipe of 11 Herbs and Spices is one of the biggest secrets in the world until now - “the Finger Lickin Taste” like a mark for KFC.…

    • 352 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Marketing Analysis - KFC

    • 9178 Words
    • 47 Pages

    KFC operates in 74 countries and territories throughout the world. It was founded in Corbin, Kentucky by Colonel Harland D. Sanders. y 1964, the Colonel decided to sell the business to two Louisville businessmen. In 1966 they took KFC public and the company was listed on the New York Stock Exchange. In 1971, Heublein, Inc. acquired KFC, soon after, conflicts erupted between the Colonel (which was working as a public relations and goodwill ambassador) and Heublein management over quality control issues and restaurant cleanliness. In 1977 a "back-to-the-basics" strategy was successfully implemented. By the time KFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600 units in 55 countries and territories. Due to strategic reasons, in 1997 PepsiCo spun off its restaurant businesses (Pizza Hut, Taco Bell and KFC) into a new company called Tricon Global Restaurants, Inc.…

    • 9178 Words
    • 47 Pages
    Good Essays
  • Satisfactory Essays

    Kfc Swot

    • 303 Words
    • 2 Pages

    KFC started to fear competitors like Mc donald’s who nowadays offer more healthier food which make customers more focused on more healthier food rather than fried…

    • 303 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Kfc--Swot

    • 1599 Words
    • 7 Pages

    I am going to talk about KFC as I worked before. Kentucky Fried Chicken, also known as KFC, a famous chicken chains restaurant, was introduced to Britain in 1965 and the first store was in Preston. Many more followed in 1986, following the worldwide acquisition of KFC by PepsiCo, it was announced that the British operation, KFC GB Ltd had become a joint venture – a company owned by Trust house Forte and PepsiCo. In January 1997, Tricon Global Restaurants and Tricon Restaurants International were founded and KFC became part of its group which is the world’s largest restaurant group with restaurants in nearly 100 countries in the world. If we combined with Pizza Hut and Taco Bell, there are nearly 30,000 restaurants worldwide. In 2002 Tricon changed its name to YUM! Brand Inc. Despite these changes in ownership, the strength of the KFC brand has seen the expansion of the UK & Ireland restaurant network to its current level of over 700 locations, some company operated and some franchised. The excellent growth of KFC in UK had also become a model for the KFC in Europe. (KFC1 )(Yum!)…

    • 1599 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    business strategies of kfc

    • 1731 Words
    • 6 Pages

    4.1. General Introduction Of KFC KFC Corporation, based in Louisville, Kentucky, is the chicken restaurant chain specializing in the worlds most popular, especially in Recipe Original, Extra Crispy, Kentucky Grilled Chicken and Original Recipe Each day,. more than 12 million customers are served at KFC restaurants in 109 countries and territories around the world. Take more than 5,200 KFC restaurants in the United States and more than 15,000 units worldwide operations. KFC is world famous for fried chicken recipe Original Recipe - is made with a secret recipe blend of 11 herbs and spices Colonel Harland different from Sanders perfected more than a half-century ago. Customers around the globe also enjoy more than 300 other products - from Kentucky Grilled Chicken dish in the United States to a salmon sandwich in Japan. KFC is part of Yum Brands, Inc., the largest company in the field of restaurant business with more than 36,000 branches worldwide. The company is ranked 239 in the Fortune 500 list, with revenues of more than 11 billion in 2008. History Of KFC From the 1950 KFC has marked his dramatic leap from a restaurant on a highway restaurant chain specializing in the worlds biggest chicken. But this will not happen if not for the persistence of a tenacious man - Colonel Harland D. Sanders. Colonel Sanders was born in Henryville 09/09/1890 suburban, Indiana. His father died when he was just six years old so his mother had to strive to feed the whole family. 1930 When at the age of 40, to the position of manager of a service cave in Corbin, Kentucky, Colonel turned his love into cooking and embarked on processing, providing food for the guests mainly those who go long distances on the highway. Harland Sanders opened his first restaurant in a small room in front of a gas station in Corbin, Kentucky. Here Sanders worked as a station operator, chef, cashier and manager dining area Sanders Court Caf. When the number of customers increased and began to make…

    • 1731 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Swot Analysis of Mcdonald

    • 1130 Words
    • 5 Pages

    This is a McDonalds Corporation SWOT analysis for 2013. For more information on how to…

    • 1130 Words
    • 5 Pages
    Good Essays
  • Better Essays

    KMC is among the world’s largest fast-food chicken chain. Owning or franchising more than 12000 outlets in about 90 countries 60 % of them outside U.S.A. KFC had a number of obstacles to overcome when entering the Japanese market, Japanese do not trust this brand To build trust in the KFC brand, advertising showing scenes depicting Colonel Sander’s beginnings in Kentucky that conveyed southern hospitality, old American tradition, and authentic home cooking. The campaign was hugely successful and in less than 8 years, KFC expanded its presence from KFC expanded its presence from 4000 locations to 1000 locations.…

    • 1226 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Operatiom Process of Kfc

    • 1742 Words
    • 7 Pages

    Throughout the industry of fast-food, there were so many organisations which gained power and title for them, such as McDonald, Pizza Hut, Burger King, Pizza Domino, etc. In the list of these successful fast-food organisations, KFC is also one of the best organisation which gained their title and power for more than 80 years. KFC is a chain of fast food restaurants and first established known as Yum! Brands. However, the organisation name has been change since 1952. Until now, KFC – Kentucky Fried Chicken is the third largest fast-food organisation in the world. KFC has more than 14,000 outlets and in more than 80 countries around the world, serving about 12 million customers each day. (KFC Franchise Opportunity, 2007)…

    • 1742 Words
    • 7 Pages
    Powerful Essays