Kfc Strengths & Weaknesses

Topics: Fast food, KFC, Hamburger Pages: 3 (822 words) Published: August 25, 2013
STRENGTHS- A key strength for KFC is the very fact that customers are loyal to the brand. This is evident as KFC held a worldwide market share of over 70 percent in both sales and restaurant. This naturally leads to KFC having gained strong customer awareness and to be the market share leader. Also apart from having been in the fast food industry since 154, has enable them to have proprietary recipes and technology. KFC also has strong marketing expertise foundation within the U.S, fast food industry which foreign fast food companies will face difficulty in developing. WEAKNESSES.- Many of the KFC outlets are aged, small, have limited seating and cater for take out diners only. KFC also lacks product innovation beyond chicken. KFC has a reputation for poor service and lack of cleanliness. AACSB Case Report

Kentucky Fried Chicken Corporation is player in a leveled-off fast-food industry. With the maturation of this industry in the United States, the restaurants involved face increased intense competition for customers. I find interesting how difficult it is for KFC and other restaurants in other segments of the industry to maintain market share control price because of the amount of competition and rivalry. The restaurants face competition within their segment and with the other segments in the industry. This, along with the NAFTA agreement, has given opportunity for industry leaders, including KFC, to expand more aggressively in Latin America. Threat of New Entrants- This force is weak. KFC has economies of scale holding the largest percentage of market share in the chicken segment of the fast food industry (50.7% in 2002). This allows KFC to spread their costs over the thousands of company-owned and franchised restaurants. Additionally, KFC was bought by PepsiCo, one of the largest consumer products companies in the United States, in which further supports its cost advantage of large production volume and input discounts not accessible to new...
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