IntroductionKentucky Fried Chicken (KFC) is one of the nation's most successful fast food organizations. It has operations throughout the world, and has grown significantly both in the number of franchisees and company-owned stores since its inception. KFC currently faces a wide range of challenges and opportunities which can determine how successfully the company will enter the next century. This research examines the current situation at KFC and steps that might be taken to ensure the continued growth and profitability of the company.
The company's primary strength is its reputation for providing high-quality chicken meals both for take-out and dining in. The company also has a strong product identification, and consumers are becoming increasingly health conscious, with the result that chicken has become a popular food choice, although the health benefits are mitigated somewhat by the frying preparation at KFC. Another of the company's strengths is its strong international presence. KFC enjoys an international market that is rivaled only by McDonald's in the fast food industry (Hume & Fisher, September 4, 1989, p. 1). This means that the company can offset some of the market saturation in the United States with continued expansion and increased sales in the international arena.
PepsiCo's affiliation with KFC is also a strength. PepsiCo can bring significant resources to bear with regard to KFC's future, and can help offset investment opportunities both domestically and abroad through its other operations. There are also advertising and marketing tie-ins that are available through the alliance that would otherwise not be part of KFC's marketing plan (for example, KFC sells Pepsi products at its outlets, thus providing a symbiotic relationship for the corporation as a whole).
At the heart of KFC's weaknesses is its frequent change of ownership. The company has gone through a number of management changes which have ...