Kentucky Fried Chicken (KFC)

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 b

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s the company at a competitive disadvantage with consumers who may need to satisfy several different tastes in a family, or who may be looking for a change of pace themselves. The method of preparation is also a drawback in an increasingly health conscious American market. Opportunities Among the opportunities that KFC faces is the opportunity to expand its international operations. The domestic market is largely saturated with fast food operations, but the international market is just beginning to provide significant opportunity to American fast food. The company already operates in more than 50 countries, and its international marketing effort has been remarkably successful. Mexico, in particular, represents a strong market where new franchising laws have made investment an attractive opportunity, and where several of KFC's competitors have already made overtures to local operators. KFC has successfully entered this market, and is in a strong position to expand its presence. Asia, with its cultural bias toward chicken, also represents an attractive expansion opportunity. Because of PepsiCo's backing, the company could expand its operations in Mexico and Asia without significantly hurting other investment opportunities

Category: Business - K