KFC SWOT Analysis
One of the major strengths of KFC is that it has a wide reach in the market. Check out EdrawMax's SWOT analysis of KFC, where we analyze the brand by its strengths, weaknesses, opportunities & threats.
1. Lead-in
SWOT analysis is a powerful marketing tool widely used by the management to know about the company's internal factors like strengths and weaknesses. It also gives an idea about their market potential, future opportunities, and threats. The management can use SWOt analysis to strategize their plans. KFC is one of the dominating names in the fast food market. It has its restaurants scattered all over the world.
Multiple internal factors have impacted the growth of the business. KFC SWOT Analysis can analyze the strengths, weaknesses, opportunities, and threats responsible for their present status in the market. In this article, to understand the importance of SWOT analysis, we will help you create a SWOT analysis using the free templates and components by EdrawMax Online.
2. About KFC
2.1 Introduction of KFC
KFC is one of the leading fast food chains in the world. It has its headquarters in the US. Though many fast-food chains have fried chicken on their menu, KFC is known for providing quality service and earning customer satisfaction. According to the American Customer Satisfaction Index, KFC earned a 79 score, with the fourth rank among fast-food restaurants. They have successfully maintained this score over the years. The company operates globally and is available in more than 26,900 locations in 146 countries. Based on YUM brand's 2020 report, KFC has 84% of restaurants in the international market, while their franchises manage 99% of locations. KFC SWOT Analysis can offer insight into their future growth and favorable or adverse market conditions. It is essential to know the basic details of KFC to do a thorough KFC SWOT Analysis:
2.2 Overview of KFC
| Name | KFC (Kentucky Fried Chicken) |
| Founded | 20th March 1930 |
| Industries served: | Fast food |
| Geographical areas served: | Worldwide |
| Headquarters: | Louisville, Kentucky, United States |
| Current CEO: | Sabir Sami |
| Revenue (US$): | 31.365 billion (in 2021) |
| Employees: | 820,000 |
| Main competitors: | McDonald's, Subway, Wendy's, Burger King Worldwide Inc. |
2.3 History of KFC
| 1930 | KFC started its journey in the USA. |
| 1937 | Restaurant expansion to 142 seats. |
| 1940 | Sanders finalized his original recipe of chicken. |
| 1963 | KFC was the first fast-food chain to open in Mexico. |
| 1965 | KFC opened its first overseas branch in Lancashire. |
| 1987 | KFC became the first Western fast-food chain to open in China. |
| 1990s | Hot wings, popcorn chicken, and Zinger are launched in the market. |
| 1994 | KFC has more than 5000 outlets in the US and more than 9400 in the world in total. |
| 2002 | KFC has more than 5000 outlets in the US and more than 9400 in the world in total. |
| 2016 | Company became the largest fast-food chain in Malaysia. |
| 2019 | KFC opened in Finland operated by franchises. |
| 2020 | Finland's first KFC restaurant was opened at the Itis shopping center in Itäkeskus, Helsinki. |
| 2022 | Came under the scrutiny of Animal rights activists who found birds in poor condition in one of the chicken farms. |
3. SWOT Analysis of KFC
Strengths
- Brand Recognition: KFC is one of the well-known fast food chains. They have customers worldwide, and their marketing strategies have helped them increase KFC's brand recognition. Their delicious fried chicken has helped them garner a customer base. Besides their meat menus, some visitors enjoy non-meat dishes. KFC has franchises, and the company's relationship with the franchises helps them expand their business.
- Secret Recipe: The brand claims its fried chicken is unique because of the spices. They use 11 secret spices and herbs in their recipe, which makes them different from others. They bring the items from multiple suppliers to maintain secrecy. This 'secret recipe' has captivated customers all over the world. It also works as a marketing gimmick for promoting their fried chicken.
- Global Presence: KFC is an international brand and is available in 26,934 locations across the globe. They are not only popular in the US, but the company has also successfully penetrated some emerging markets and increased its sales. Their expansion in China shows their experience with the non-US market. Their idea about the target markets has helped them with consistent growth. They have also added menus according to the local taste to ensure ultimate customer satisfaction.
- Efficient in Production: KFC is one of the most valuable brands, with 5.4 billion worth. They have a loyal customer base, which reflects in their sales because they have the resources to invest in multiple departments. As a leading company, they have arranged their production unit to produce perfect quality products within a short time. It has increased its efficiency to serve the maximum number of people at a time.
Weaknesses
- Unhealthy Menu: KFC's menu has a large number of items that has fat, salt, or sugar, making them high-calorie and unhealthy dishes. Many customers are choosing healthy alternatives as people are becoming health conscious. Organizations working on health and obesity are also protesting against KFC. These have negatively impacted the business of the brand.
- Untrustworthy suppliers: For a business, having a smooth supply chain is very important. The customers prefer high-quality livestock raised in good condition. However, the suppliers often fail to keep up with this, and KFC has to experience backlash. KFAC had to temporarily close its operation in 2018 because the supplier delayed the delivery.
- Problems with Franchises: The operations of KFC are highly dependent on the franchises. It makes it difficult for the brand to control the quality of food and service. Poor franchise management can decrease brand sales, and it may also hamper the brand's image.
- Negative publicity: KFC has often suffered due to negative publicity; the organizations working on health have protested against their food quality and menu. Apart from that, criticism regarding unethical business practices, poor treatment of the employees, dangerous food handling, inhuman condition of the livestock, etcetera. These scandals have harmed the business of KFC. It has also decreased its profit.
Opportunities
- Adding Healthy Alternatives: KFC needs to add healthy dishes to its menu to attract the health-conscious young generations. Many individuals are interested in consuming gluten-free and sugar-free items. KFC can use organic products and have items without gluten and sugar, thus, increasing the number of customers.
- Automation: Fast food chains depend heavily on the supply chain to conduct their operations smoothly. Therefore any problem in the supply chain can disrupt their business. KFC can invest in automation to increase the pace of the production process. They can use technology to create a streamline between the supply chain, production unit, and franchise distributors.
- Solving Franchise problem: KFC, as a business, massively depends on franchises. The management must use strategies and codes of conduct to control the food quality and management of the franchises. They can solve those problems that the franchises face to ensure premium service levels and food quality.
- Innovative Marketing: Since KFC has high brand recognition, it can reach a large audience. The brand can use creative campaigns to show its social responsibilities. It can improve the brand image, and its campaign might interest potential customers.
Threats
- Health Activism: KFC has earned its success by selling fast food, but many activists are voicing their thoughts against the harmful sides of fast food consumption. It may negatively impact the business of KFC.
- Economic conditions: The world economy is not stable yet, and since KFC is a global brand, economic conditions may harm their business. Inflation, unemployment, and foreign currency exchange rate are some of the problems that might reflect on their profit.
- Lawsuits: For brands like KFC, even small slips can result in legal problems. These lawsuits can ruin the positive brand image of the company. At the same time, the compensation and cost of legal proceedings may drain out a good portion of their resources.
- Competition: Multiple giant fast-food chains can emerge as strong competitors to KFC. The government often promotes local shops. Moreover, these local shops are also aware of the tastes locales prefer. Therefore, these local fast food brands can also take away some of the customers from KFC.
KFC SWOT Analysis Diagram
As you have seen here, the organization's SWOT analysis helps us understand its multiple opportunities and threats and how it can utilize its strengths and overcome its weaknesses. In order to understand the SWOT analysis better, we will create a KFC SWOT analysis diagram using the free templates and components offered by EdrawMax.
4. Free SWOT Analysis Diagram Creator
When it comes to creating a SWOT analysis, EdrawMax is your go-to tool. Unlike other SWOT analysis creators, this is a free tool that comes with templates and several customization options. Some of the great features of this free SWOT analysis diagram software are:
- With this free SWOT analysis creator, you can share your diagrams on social media platforms like Facebook, Twitter, Pinterest, and Line.
- With EdrawMax Online, you can access your remotely stored file and create SWOT analysis diagrams on the go.
- In EdrawMax, all information and file transfers are safeguarded with the highest level of SSL encryption.
- In EdrawMax, you can select the target shape before printing and custom print the chosen shapes.
- In EdrawMax, you can now replace photos by dragging and uploading files all in one click while making different charts.
- This free SWOT analysis creator is powerful in presenting ideas with the help of a graphic illustration.
EdrawMax Online
5. Key Takeaways
As a fast food chain, KFC may face challenges due to current economic conditions. Moreover, if people's lifestyles and food habits change, things will become challenging for KFC. The brand can invest in marketing and new healthy options to attract more customers. KFC SWOT Analysis shows that emerging markets have an immense possibility of growth for the company. KFC can properly strategize and unify the management of their franchises to offer a smooth and best quality service to their customers.
EdrawMax is one such tool that offers a wide range of customization offers to your SWOT analysis templates. This free SWOT analysis creator comes for all the major operating systems, and you can even check out EdrawMax Online if you are planning to access your remote files. Download EdrawMax today and create some amazing SWOT analysis diagrams for your organization or company.
Reference
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DMR. 2022. Interesting KFC Statistics and Facts., [online]. Available at: https://expandedramblings.com/index.php/kfc-statistics-facts/ (Accessed 9 September 2022).
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Zippia.com. 2022. KFC Revenue: Annual, Historic, And Peak Revenue., [online] Available at: https://www.zippia.com/kfc-careers-28614/revenue/ (Accessed 9 September 2022).
