1、KFC SWOT analysisStrengths:1. Second best global brand in fast food industry in terms of value ($ 6 billion).KFC is known by many and is a trustworthy brand in many countries mainly due to its early franchising and international expansion.2. Original 11 herbs and spices recipe.KFC original chicken r
2、ecipe is a trade secret and a source of comparative advantage against firms competitors.3. Strong position in emerging China.KFC receives half of its revenue from China, where it operates more than 4,000 outlets. KFC position in China is one of its main strengths as Chinas fast food market is growin
3、g steadily.4. Combination of KFC Pizza Hut and KFC Taco Bell.KFC partnership with other Yum! Brands yields some advantage as the restaurant can offer items from its partners it doesnt have itself and satisfy more customers needs.5. KFC is the market leader in the world among companies featuring chic
4、ken as their primary product offering.KFC has positioned itself clearly among other fast food chains bearing its famous slogan and trademark chicken products.Weaknesses:1. Untrustworthy suppliers.Over the years, KFC has been contracting suppliers, which supplied contaminated poultry to KFC or were m
5、istreating chicken, thus resulting in falling sales and damaged reputation.2. Negative publicity.KFC receives much criticism from PETA over the conditions chickens have been raised. Furthermore, it received bad publicity for selling chicken wing with kidney. There are many more or less bad news from
6、 KFC, which damage firms reputation significantly.3. Unhealthy food menu.KFC menu is largely formed of high calorie, salt and fat meals and drinks. Such menu offering prompts protests by organizations that fight obesity and hence, decreases KFC popularity. Consumers also often opt out for healthier
7、choices.4. High employee turnover.Employment in KFC is a low paid and low skilled job. It results in low performance and high employee turnover, which increases training costs and add to overall costs of KFC.Opportunities:1. Increasing demand for healthier food.While demand for healthier food increa
8、ses, KFC could introduce more healthy food choices in its menu and reverse its weakness into strength.2. Home meal delivery.KFC could fully exploit (it test deliver services now) this opportunity and reach more customers.3. Introducing new products to its only chicken range.KFC could introduce new m
9、eals to its menu and offer pork, beef or only vegetarian meals, which would target wider consumer group and would result in more costumers.Threats:1. Saturated fast food markets in the developed economies.The fast food market in the developed countries is already overcrowded by so many fast food res
10、taurant chains and this already proves to be a threat to KFC as it finds it hard to grow in the developed economies.2. Trend towards healthy eating.Due to government and various organizations attempts to fight obesity, people are becoming more conscious of eating healthy food rather than what KFC ha
11、s mainly to offer in its menu.3. Local fast food restaurant chains.Local fast food restaurants can often offer a more local approach to serving food and menu that exactly represents local tastes. Although KFC does a great job in adapting its own menu to local tastes, the rising number of local fast
12、food chains and their lower meal prices is a threat to KFC.4. Currency fluctuations.KFC receives part of its income from foreign operations. That income has to be converted into dollars and may affect the business profits, especially when the dollar is appreciating against other currencies.5. Lawsuits against KFC.KFC has already been sued for many times and lost quite a few lawsuits. Lawsuits are expensive as they require time and money. As KFC continues to operate more or less the same way, there is high probability for more expensive lawsuits to come.
