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KFC SWOT in China

Satisfactory Essays

SWOT Analysis: Market

Internal:
Strengths:
the company owns and franchises more than 15,500 outlets in more than 100 countries (great diversification, expanding rapidly in high growth areas (i.e. China)
By 2006, KFC had 1,700 restaurants in China, more than tripling in five years. Profit and sales figures saw increases of over 25 percent for some quarters, while comparable figures domestically were 1 and 2 percent. KFC significantly outsold McDonald's in China, and by 2006, KFC was opening a new Chinese outlet every 22 hours. Yum!'s boss David Novak told Business Week (October 30, 2006) that he hoped to eventually have as many KFC restaurants in China as in the United States. "There is no one else in China expanding at this level …show more content…

market research survey)
(Americans) 73% of Americans say they eat junk food because it is due to convenience (more locations, easier for consumers to access) (U.S.Market research Survey)
The commodity analysis hold rating indicates that chicken should stay the same price over the short term

Threats: overall, fast-food chicken was no longer an expanding area, and at home (North America), KFC was stuck in flat or 2 to 3 percent sales growth
While the financial services industries are fairly robust in many emerging market economies, bankers remain reluctant to lend (recent economic recession, financial industry hurting)
Emerging Market Context: “However, this doesn’t necessarily translate

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