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KFC SWOT ANALYSIS

Strengths
Opportunities
 Brand Equity
 2nd Only to McDonald’s in Foreign Sales  Growth of 18-24 age demographic
$550M  Increase in U.S. median income
 Strong Cash Flows  International beef scare from mad-cow
 Generate $1B each year and hoof and mouth disease
 Very strong Internationally  Home Meal Replacement Market will
UK, Middle East, Thailand, China, Japan, exceed an estimated $577 billion by
Korea, Mexico 2020
 Strong Franchise and License Fee revenues  Targeting to growing ethnic markets –
for cash flow. Asian American and Hispanic
 Interactive relationship marketing  New Leadership
 Strong trademarks recipes  Domestic markets
 Ranks highest among all chicken restaurant  Updating restaurants
chains for its convenience and menu variety.  Balanced menu
 Largest multibranded restaurant in the world  Customer focus
100 KFC and Pizza Hut combos 600 KFC  Increase delivery service
and Taco Bell combos

Weaknesses
Threats
 Recent drop in sales for KFC
 Failed to rank in top 20 in growth in  Rated 83 out of 100 in terms of
2000. competitiveness
 Same Store sales declined  Increasing wage rates directly affect
 Lack of point of scale scanning system menu prices
 Admitted inability to provide quality  85% annual employee turnover for fast
service –food market
 Lack of knowledge abut their customers  Supermarkets and new competitors
 Lack of relationship building with threaten HMR market
employees, customers and suppliers i.e.  International Exchange Rates
Chick-fil-a  Health Trend away from fried foods
 Question of over franchising leads to  Changing customer demands
loss of control and quality  Quality of Service Focus
 Lack of focus on R&D

Finger licking good!