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KFC SWOT case study

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Introduction

Kentucky Fried Chicken And The Global Fast-Food Industry Kushal Rakshit (ID - 02774170) SWOT analysis: Strengths: * KFC is a market leader. KFC is world's largest chicken restaurant chain. So, it's easy for them to grow the company on international level and open franchises all over the world. * They focused on building shopping malls, universities and hospitals to get the popularity. * KFC continued to experiment with home delivery. * KFC established "2 in 1" units that sold KFC and Taco bell or KFC and pizza hut. * Competitive marketing strategy: Developed three types of chicken: Original recipe(pressure cooked), Extra crispy (fried), Tender roast (roasted). ...read more.

Middle

Sanders to KFC employees over the years. Opportunities: * US market maturity- many restaurants expand to international markets as strategy for growing sales. * Expansion program for the Mexican market/Latin American markets * NAFTA advantage * Demographic trends (demand for food eaten outside of the home) Threats: * Consumer health food trend. * Saturated fast food industry in the U.S. market Generic strategies: * Low cost: If the products are very similar the switching cost of customers is low then price competition is common. KFC uses an integrated low cost/differentiation leadership, since it can count on its brand name and original taste and recipes to be unique while at the same time compete on price using the benefits of cost savings from economies of scale. ...read more.

Conclusion

These success techniques will lower costs and increase profits in the industry. Grand strategies: * Joint venture: In 1969, a joint venture was signed with Mitsuoishi Shoji Kaisha, Ltd., in Japan, and the rights to operate 14 existing KFC franchises in England were acquired. Subsidiaries also were established in Hong Kong, South Africa, Australia, New Zealand, and Mexico. * Product development: KFC withdrew its rotisserie chicken in 1996 and introduced a new line of roasted chicken called Tender Roast, which could be sold by the piece and mixed with its Original Recipe and Extra Crispy Chicken. * Market development: KFC will introduce their present and new products and services into new geographic/demographic areas. ...read more.

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