ut lags far behind KFC. This dominant position is supported by a strong commitment to quality standards which ensure that customers who purchase KFC goods in one geographic area are likely to receive the same quality of goods in a different area. This was not always the situation at the company; during one period in the company's history, it was unable to maintain sanitation and quality standards to the point that Harland Sanders expressed concern about the long-term relationship he had with the company at that point.
In addition to the quality of the goods that KFC sells, the company also has regained strong loyalty among customers. This has been achieved not only through its commitment to quality, but also through strong brand recognition. The company has moved farther from its identification with Sanders and built a strong brand around the KFC name (including changing its corporate identification from Kentucky Fried Chicken to the initials).
Another strength of the company is its ownership by PepsiCo, which has a background in fast food through its Taco Bell operation, and which has vast financial resources which can be used to support its various strategic business units. PepsiCo also has a strong international presence, which can be used to gain synergistic benefit for KFC and related companies. This financial backing means that KFC can undertake expansion in terms of stores, or that it can conduct extensive market research designed to develop new menu items in order to increase its revenues. PepsiCo also has a strong market presence in the various food segments in which it participates as illustrated by the following chart:
KFC's primary weakness comes from new management which is not familiar with the culture at KFC, but which is familiar with the PepsiCo culture. While this is in keeping with PepsiCo
...