KFC SWOT ANALYSIS Strengths ? Brand Equity ? 2nd Only to McDonald’s in Foreign Sales $550M ? Strong Cash Flows ? Generate $1B each year ? Very strong Internationally UK, Middle East, Thailand, China, Japan, Korea, Mexico ? Strong Franchise and License Fee revenues for cash flow. ? Interactive relationship marketing ? Strong trademarks recipes ? Ranks highest among all chicken restaurant chains for its convenience and menu variety. ? Largest multibranded restaurant in the world 100 KFC and Pizza Hut combos 600 KFC and Taco Bell combos Weaknesses ? Recent drop in sales for KFC ?
Failed to rank in top 20 in growth in 2000. ? Same Store sales declined ? Lack of point of scale scanning system ? Admitted inability to provide quality service ? Lack of knowledge abut their customers ? Lack of relationship building with employees, customers and suppliers i. e. Chick-fil-a ? Question of over franchising leads to loss of control and quality ? Lack of focus on R&D Opportunities ? Growth of 18-24 age demographic ? Increase in U. S. median income ? International beef scare from mad-cow and hoof and mouth disease ? Home Meal Replacement Market will exceed an estimated $577 billion by 020 ? Targeting to growing ethnic markets – Asian American and Hispanic ? New Leadership ? Domestic markets ? Updating restaurants ? Balanced menu ? Customer focus ? Increase delivery service Threats ? Rated 83 out of 100 in terms of competitiveness ? Increasing wage rates directly affect menu prices ? 85% annual employee turnover for fast –food market ? Supermarkets and new competitors threaten HMR market ? International Exchange Rates ? Health Trend away from fried foods ? Changing customer demands ? Quality of Service Focus Finger licking good!