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SWOT Analysis of KFC

What does a SWOT analysis of KFC reveal, and which areas can be leveraged?

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Please see response attached, which is also presented below. I hope this helps and take care.


I take it that you have already completed a SWOT and want some input or discussion on the possible results and areas that can be leveraged. However, without your results, this information will be a general discussion.

By developing a SWOT analysis, a company can determine what its distinctive competencies are. This will help determine what the organization should be in business for, what its mission should be. A SWOT Analysis examines the companies:
· Strengths...Internal
· Weaknesses...Internal
· Opportunities...External
· Threats...External

Fundamental changes in overall fast food industry occurred, including KFC, in responses to the lifestyle changes of customers who desire more healthy products. For example, since 2000, fast food organizations have added so-called healthy alternatives to their menus to reflect societal trends. Some analysts believe KFC's slow or inadequate response to this trend cost it significant market share. Organizations can also overreact to apparent trends, however. By mid-2004 consumers seemed to be abandoning the low carbohydrate diets popular in 2002-3 and some organizations now had products that were expensive to develop and advertise that were no longer in demand (http://www.managementmag.com/index.cfm/ci_id/2072/la_id/1).

As well, high levels of competitive rivalry in the industry and the growth of the sandwich market, which poses a real and significant threat to KFC fast food outlets. However, an opportunity for leverage for KFC is to take market share from major burger companies as a result of the wider pressures of the global Fast Food Industry.

Many strategic changes that took place in Kentucky Fried Chicken Corporation (KFC) as it moved through a variety of ownership changes from the 1950s through the 1980s: (1) KFC's founding by "Colonel" Harland Sanders in 1954; (2) the sale of KFC to Jack Massey and John Young Brown, Jr., in 1964; (3) Heublein's acquisition of KFC in 1971; (4) the acquisition of Heublein by R. J. Reynolds in 1982; and (5) PepsiCo's acquisition of KFC in 1986. (http://www.ilstu.edu/~mhemmas/Case_Questions.htm#Kentucky%20Fried%20Chicken%20and%20the%20Global%20fast-food%20Industry for full discussion)

From file:///C:/Documents%20and%20Settings/Debbie/Local%20Settings/Temporary%20Internet%20Files/Content.IE5/IHJGP4RY/MBAIB7%5B1%5D.ppt#282,26, KFC's Latin ...

Solution Summary

This solution explains what a SWOT analysis of KFC reveals, and which areas can be leveraged.