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).
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Weaknesses:

  • KFC was acquired by PepsiCo from RJR Industries. Sweeping changes into the culture was initiated by the new management- this brings about demoralization to old KFC employees and even franchisees.
  • Several restructurings led to layoffs throughout KFC, replacement of KFC managers with PepsiCo managers
  • Conflicts between KFC and PepsiCo cultures- this is manifested with PepsiCo’s stronger emphasis on performance rather than loyalty expressed by Col. 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
  • ...

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