KFC Company Analysis
KFC(Kentucky Fried Chicken) is one of the leading fast food chains inthe world. Its main product is fried chicken. The company owns andfranchises over 17,000 outlets in more than 115 countries, about5,100 being located in the United States. In 2012, the company’srevenue was $9.5 billion (Hoovers, N.D). Its main competition comesfrom McDonalds Corporation, Wendy’s Company, Burger King, andSubway.
“Ourpassion, as a restaurant company, is to put a YUM on people`s facesaround the world, satisfying customers every time they eat our foodand doing it better than any other restaurant company”
Thecompany’s key ambition is to increase and maintain high quality inthe fast food industry. Its aim is to control the fast food market.
KFCis the second best global brand in the fast food domain in terms ofvalue, amounting to $6 billion. It is a trustworthy brand globallyconsider mainly because of its early franchising. It has unique 11herbs and spices recipe, which is its greatest trade secret and asource of comparative benefit against its competitors (Liu, 2008). Ithas a strong franchise of KFC Taco Bell and Pizza Hut. Amongcompanies serving chicken as their main product, KFC is the marketleader. This partnership with renowned Yum! Brands have an advantage.
KFCis threatened by negative publicity concerning the way chicken arehandled. Its unhealthy food menu in an era when fast foods are beingdiscouraged brings a lot of challenges for the business’s future.Besides, the company suffers high employee turnover due to poor payand working condition. Lack of comprehensive marketing efforts, whichdoes not position it for competition
Thereis growing demand for healthy foods that the company can invest in.They can thus introduce new products to their existing menu and turnits weakness into strength. In addition they can start home deliveryservices, to fully exploit its pilot delivery service, reaching morecustomers.
Thethreats that face KFC include the rising trend towards healthyeating. Through government and other organization’s sensitizationagainst obesity and its risks puts the fast food business at risk.The saturation of the food market in developed countries makes itdifficult for KFC to expand in these economies (Rudolph, 2012).Lawsuits against the company have been rampant with the companylosing in several suits. These lawsuits are expensive and dent theimage of the company (Scott,2012).Currency fluctuations are another threat as KFC relies on foreignmarkets for some of its income.
KFCremains a strong market player despite the various challenges andthreats facing the company. It has opportunities to diversify inhealthy foods to meet the current market demands. Advertisement cangreatly help market and improve sales in the company.
KentuckyFried Chicken (KFC) is a fast food chain with over 17,000 outletsglobally. Its revenue was $ 9.5 billion in 2012. The company is theleader in global market share followed by McDonalds. Among othercompetitors include Subway, Burger King, and Wendy’s Company.
Itsvision and mission statement are very clear in being the world leaderin the fast food industry. Quality is at the heart of KFC mission.
KFCis the second best global brand in the fast food domain in terms ofvalue, amounting to $6 billion. It has unique 11 herbs and spicesrecipe. In addition, it has strong franchise of KFC Taco Bell andPizza Hut. Among companies serving chicken as their main product, KFCis the market leader.
KFCis threatened by negative publicity and unhealthy food menu in an erawhen fast foods are being discouraged. Besides the company suffershigh employee turnover and lacks comprehensive marketing efforts.
Thereis growing demand for healthy foods that the company can invest in.They can thus introduce new products to their existing chickenvariety. In addition they can start home delivery services.
Thethreats that face KFC include the rising trend towards healthyeating, saturation of the food market in developed countries,competition from local fast food stores, lawsuits against the companyas well as currency fluctuations.
Hoovers(no date). KFCCorporation Company Information.Retrievedhttp://www.hoovers.com/company-information/cs/company-profile.KFC_Corporation.d0b2ed89897712c2.html(Accessed April 28, 2014).
Liu,W. (2008). KFC in China : secret recipe for success.Singapore Hoboken, NJ: John Wiley & Sons (Asia.
Principlesof Management (2012 August, 5). CompanyProfile Case – KFC.Retrievedhttp://nitieim19pomb071.blogspot.com/2012/08/company-profile-case-kfc.html(Accessed April 28, 2014).
Rudolph,T. (2012). Diversity in European marketing text and cases.Wiesbaden: Springer Gabler.
Scott,N. (2012). Saving Us from Ourselves: The Government`s Role in Obesityand Personal Responsibility. DrakeJ. Agric. L.,17,211.