SWOT ANALYSIS

STRENGTHS
KFC continued to dominate the Chicken Segment, with sales of 4.4
billion in 1999.
Despite gain by Boston Market and Chick-fill A, KFC customer base
remained loyal to the KFC brand because of its unique taste.
KFC has continued to dominate the dinner and take out segment of
the Industry.
Strong trademarks recipes.
Ranks highest among all chicken restaurant chains for its
convenience and menu variety.
Generate $1B each year
 WEAKNESSES
KFC was loosing market share as other Chicken chain increased
sales at a faster rate.
KFC share of Chicken Segment sales fell from 71 percent 1989, to
less than 56 percent in 1999, a 10-years drop of 15 percent.
KFC leadership in U.S market was so extensive that it had fewer
opportunities to expand its U.S restaurant base, which was only
growing at about 1 percent per year.
Failed to rank in top 20 in growth in 2000.
Lack of knowledge about their customers.
Question of over franchising leads to loss of control and quality.
Lack of focus on R&D.
 OPPORTUNITIES
McDonald’s accounted for 35 percent of the Sandwich Segment while
Burger King ran a distant Second, with a 16 percent market share.
Per store sale at Burger King remained flat and Hardee’s per store sale
declined by 10 percent.
In family Segment, Friend’s and Shoney’s were forced to shut down
restaurants because of declining profits.
Within the Pizza Segment, Pizza Hat and Little Caesars Closed
underperforming restaurants.
Boston Market was a new restaurant chain that emphasized roasted rather
than fried chicken.
In 1999, Boston Market soon entered Bankruptcy proceedings.
Church’s broadened its menu to include buffalo chicken wings, macaroni
and cheese, beans and rice and collard greens.
Baby boomers aged 35 to 50 constituted the largest customer group for
fast-food restaurants.
 THREATS
McDonald’s with sales of more than 19 billion in 1999, accounted for 15
percent of the sales of the nation’s top 100 restaurant chains.
McDonald’s generated per store sale 1.5 million per year.
Much of the growth in dinner houses came from new unit construction in
suburban market and small town.
In Family Segment, Steak n Shake and Cracker Barrel expend its
restaurant by more than 10 percent.
KFC nearest competitor Popeye, ran a distant second with sales of 1.0
billion.
In early 1990s’ many industry analysts predict that Boston Market would
challenge KFC for market leadership.
Boston market and Chick-fil-A market share gains were achieved primarily
by taking customer away from KFC.
Popeye’s replaced Boston market as the second largest chicken chain in
1999.