Kentucky Fried Chicken is one of the largest fast food franchise concepts of today; it is

present in various countries around the world and it has been able to establish a renowned

International reputation in multiple continents. Starting in the United States in the 1930s, it

has grown to become a true multi-domestic company.

SWOT ANALYSIS-

STRENGTHS-

KFC continued to dominate the Chicken Segment, with sales of 4.4 billion in 1999.

Despite gain by Boston Market and Chick-fill A, KFC customer base remained loyal to the

KFC brand because of its unique taste.

KFC has continued to dominate the dinner and take out segment of the Industry.

Strong trademarks recipes.

Ranks highest among all chicken restaurant chains for its convenience and menu variety.

Generate $1B each year

WEAKNESSES-

KFC was losing market share as other Chicken chain increased sales at a faster rate.

KFC share of Chicken Segment sales fell from 71 percent 1989, to less than 56 percent in

1999, a 10-years drop of 15 percent.

KFC leadership in U.S market was so extensive that it had fewer opportunities to expand

its U.S restaurant base, which was only growing at about 1 percent per year.

Failed to rank in top 20 in growth in 2000.

Lack of knowledge about their customers.

Question of over franchising leads to loss of control and quality.

Lack of focus on R&D

OPPORTUNITIES-

McDonald’s accounted for 35 percent of the Sandwich Segment while Burger King ran a

distant Second, with a 16 percent market share.

Per store sale at Burger King remained flat and Hardee’s per store sale declined by 10

percent.

In family Segment, Friend’s and Shoney’s were forced to shut down restaurants because

of declining profits.

Within the Pizza Segment, Pizza Hat and Little Caesars Closed underperforming

restaurants.

Boston Market was a new restaurant chain that emphasized roasted rather than fried

chicken.

In 1999, Boston Market soon entered Bankruptcy proceedings.

Church’s broadened its menu to include buffalo chicken wings, macaroni and cheese,

beans and rice and collard greens.

Baby boomers aged 35 to 50 constituted the largest customer group for fast-food

restaurants.

THREATS-

McDonald’s with sales of more than 19 billion in 1999, accounted for 15 percent of the

sales of the nation’s top 100 restaurant chains.

McDonald’s generated per store sale 1.5 million per year.

Much of the growth in dinner houses came from new unit construction in suburban

market and small town.

In Family Segment, Steak n Shake and Cracker Barrel expend its restaurant by more

than 10 percent.

KFC nearest competitor Popeye ran a distant second with sales of 1.0 billion.

In early 1990s’ many industry analysts predict that Boston Market would challenge

KFC for market leadership.

Boston market and Chick-fil-A market share gains were achieved primarily by taking

customer away from KFC.

Popeye’s replaced Boston market as the second largest chicken chain in 1999.

FINDINGS-

KFC was trying to increase market share in other regions of South America beside

Maxico & Carabian. But financial constraints restricted KFC from doing so.

KFC focus on strengthening its position in Maxico & Carabian Only.

New Competitors like Habib’s and Wendy’s were establishing new restaurants in

Maxico.

KFC had largest market share of fast food chains in Maxico.

Devaluation of Peso does not effected KFC, because their production plants in Maxico

were utilizing local resources.

RECOMMENDATIONS-

If KFC could increase company own restaurants, which enables it to control quality,

services and restaurant cleanliness. Therefore more capital is needed.

On the other hand if company operated franchise based restaurants throughout Latin

America, its brand image could be build and its competitors will be loosing first more

advantage.

Latin American markets are developing markets, so its growth is high and entry barriers

are low.

KFC could make strategic alliances with key suppliers to gain advantage over

competitors in the market.

An a peeling business model and good strategy has golden opportunity to shape the

rules and establish itself as the recognize market leader.