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... External Analysis Pages 3 - 9
A. ... Five Force Analysis Page 5
C. ... Internal Analysis Pages 10-18
A. ... SWOT Analysis Page 11
C. Financial Analysis Page 13
D. Competitor Analysis Page 14
E. ... Group Map Diagram Appendix A
SWOT Analysis Chart Appendix B
Sales Projections and Internet Update Appendix C
I. External Analysis
A. ...
KFC: = ( They are growing at a slightly lower number than the entire industry. ... KFC’s leadership in the U. ... KFC’s scope has increased globally as well. ... Since their early expansion abroad, McDonald’s, KFC, Burger King, and Pizza Hut have all developed strong brand names and managerial expertise in international markets. ...
KFC: =I KFC ranks third on the list of global coverage, with stores in 85 countries. In 1999 KFC held 55. ... Due to an increasing number of immigrants chains such as KFC may be losing customers that want a variety of food.
KFC: =) KFC’s customer base remained loyal to KFC brand because of its unique taste. KFC attempted to increase consumer traffic through discounting, by accepting coupons from competitors, by offering two-for-one specials, and by making limited-time offerings.
Ease of Entry/Exit
In/Out: =) With competitor such as McDonalds, KFC, and Burger King it is difficult to break into the fast-food industry. ...
In/Out: =) Computers could be used to improve labor scheduling, accounting, payroll, sales analysis, and inventory control. ...
KFC: =) Continues to dominate the dinner and take-out segments of the industry. ... KFC’s early experiences operating abroad put it in a strong position to take advantage of the growing trend toward international expansion. ... Five Force Analysis
The Rivalry among Competitive Sellers (Weak)
The closest competitors in the chicken chain include Popeye’s, Chick-fil-A, Boston Market and Church’s. ... Boston Market in the early 1990s was predicted to challenge KFC for market leadership emphasizing its roasted rather than fried chicken. ... But Boston Market rather then drawing customers away from KFC, appealed primarily to consumers who did not regularly go to KFC. KFC still has 55. ... At the same time KFC doesn’t have the capacity or knowledge to make all of their food in-house, so suppliers do have some authority in this way. ...
CONCLUSION
• The rivalry among competitive sellers ----- Weak
• Potential entry of new competitors ----- Weak
• Competitive pressures from substitute products ----- Strong
• Competitive pressures stemming from supplier/seller collaboration and bargaining ----- Moderate
• Competitive pressures stemming from supplier/buyer collaboration and bargaining ----- Moderate
Overall Grade: C
While KFC dominants the chicken chain industry, the market of other fast- food industries is overwhelming, and very saturated. ... For example, KFC had trouble breaking into the German market during the 1970s and 1980s because Germans were not accustomed to buying take-out or ordering food over the counter. ... In Asia and Latin America KFC has been successful there because chicken is their traditional dish and it fits their culture.
Customer Service (Attractive)
As KFC continues to growth they are planning to focus on the company-owned restaurants in some areas. Giving KFC greater control over product quality, service, and restaurant cleanliness. This is along with franchises in other international markets which are operated by local business people who understand the local market better than KFC. As long as KFC continues to give their customers what they want they will continue to be successful. ... KFC is losing market share as other chicken chains increase sales at a faster rate. ... Sandwich chains make up the largest segment of the fast food market so KFC should consider going into that market some more. ... Computers also have been used to improve labor scheduling, accounting, payroll, and sales analysis. ... KFC controls 55. ...
CONCLUSION
In 1999, KFC is doing well in the chicken market industry having top sales and 55. ... Listed below are the key success factors for KFC:
• Development of the Internet
• Developing a successful marketing plan
- Menu variety
- Building smaller restaurants in nontraditional outlets
- Experimentation with home delivery
- Establishing 2-in-1 stores
• Globalization
• Product quality
• Building image/reputation with customers
• NAFTA
• Franchises and company-owned stores
CONCLUSION
There are many key factors in the market that could make KFC successful in the fast-food restaurant business. ... Globalization has helped KFC sustain position in Mexico and the Caribbean. ... Building a brand image has prevented competitors from taking a large amount of market share from KFC. ... Last, Franchises and company-owned stores have given KFC greater control over product quality, service, and restaurant cleanliness. In conclusion, KFC has been fairly successful in implementing the key success factors that they have set for themselves. ... Internal Analysis
A. ... Below is a list of the strategies that KFC is implementing:
• Sustaining KFC’s position in Mexico and the Caribbean. ...
• Initiate a three-pronged distribution strategy that helps raise sales:
- Building smaller restaurants
- Experimentation with home delivery
- Establish 2-in-1 units that sell a combination of KFC, Taco Bell, and or Pizza Hut
• Adding new items to the menu:
- Original Recipe
- Extra Crispy
- Tender Roast
- Colonel’s Crispy Strips
- Five new boneless chicken sandwiches
Identification of a Business model
A business model is more narrowly focused than the company’s business strategy. ... Below is a list of the key elements in KFC’s business model:
• Expanding restaurants into international fast-food market. ...
CONCLUSION
In conclusion, KFC has a successful looking business model. ... KFC has been successful in expanding restaurants into international markets; they have been focused on Latin America because they have opened 438 restaurants. KFC has also continued domination in the chicken segment. They have not allowed their competitors to take a large market share away from KFC. KFC also is interested in refranchising the company back to franchisees that know how to run the business. KFC has also taken advantage of merging with PepsiCo because they are now able to open 2-in-1 stores that will make the company more efficient and profitable. ... SWOT Analysis
Strengths
• World’s largest chicken restaurant chain, third largest fast food chain
• One of the first fast food chains to go international
• Bases much of its growth on company owned restaurants
• Unique taste
• Customer loyalty
• NAFTA
Weaknesses
• Limited menu
• Losing market share as other chicken restaurants’ sales increases
• Changes within the company
• Increase in Ethnic foods
• As baby boomers get older their preferences change to dinner houses
• Market is saturated
Opportunities
• Increase globalization
• Expansion into Latin America
• Invest more capital into larger markets to challenge existing competitors
• Differentiation of products
• Building smaller restaurants in nontraditional outlets
• Offering drive through and home delivery
• Establishing 2-in-1 units
Threats
• Overcapacity in U.
Approximate Word count = 5407
Approximate Pages = 21.6
(250 words per page double spaced)
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