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
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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
“Although many health authorities insist that there is no such thing as junk food, consumers find it a useful term for distinguishing nourishing food from products whose chief appeal is fun, convenience, and addictive taste; ‘bet you can't eat just one’ ”(Junk Food). Americans are spending about $4.6 billion a year on potato chips, and 23.5 billion a year on candy and gum. 46 Percent of adult Americans eat out on a typical day, and one third of them choose fast food. That is because the fast food industry has slowly become one of the symbols of American culture and is spreading to other cultures as well: McDonalds has 26,000 locations in 119 countries, Pizza Hut has more than 10,000 in 86 countries, and Subway has 14,500 in 75 countries. Commercials, signs, and huge advertisements are pushing junk food at us every day; people cannot even go to the grocery store without candy bars being lined up right by the checkout. The junk food industry realizes how appealing it can be. When a person is in a rush, they can easily eat a large meal without having to make a lot of decisions, work, dress up, or get out of their car. The speed and convenience fit Americans’ pressured lifestyles. It does not fit, however, to our health and wellness. A fast food meal, such as a Burger King Double Whopper with cheese, contains 965 calories, more than double the amount of fat, and as much as 750 grams too much sodium
With a company that has been around over a century the strategies it uses change an develop with the society. Since they had begun they have rapidly grown, within the first 30 years of their business
The company has used the element of networking with the prospective marketers and ambassadors to market their products. The company has also used direct sales through fundraising to increase prospect of gaining more market.
Today, we have easy access to fast food or take away restaurants all day and every day. People prefer buy food as it is convenient and less time consuming however junk food usually has lack of nutrition and contains too much fat or sodium.
Company have approximately 110600 employees globally. It has total assets of $103 billion which is more than Coca-cola and other dominant companies.
Junk food is convenient in the sense that it doesn’t take long to prepare and healthy food on the other hand is expensive as well as inconvenient. Mothers are more likely to fix unhealthy foods for dinner because not only do those foods cost less, but those meals are able to be served in no time. Many families don’t have extra money to spend so they are expected to buy more of the name brand foods or junk foods. Even though families are purchasing a abundant amount of junk food, that food is able to meet that families nutritional needs, even though they will evidently obtain the extra calories (Should junk food be sold 1). As much as healthy food may be inconvenient, it also doesn’t keep as long as junk foods do because of preservatives. Food made of semi-finished products contains various artificial additives that help keep the products color, odor and even sometimes the taste (Food Additives
a market share of 28.4% , it has stores in many countries like Hungary , Thailand , Malaysia , Ireland . Recently
In the article ‘‘Is Junk Food Really Cheaper?’’ by Mark Bittman and ‘’Gap in Diet Quality Between Wealthiest and Poorest Americans Doubles, Study Finds’’ by Tracie McMillan both state the problem of a gap in quality food in U.S. is causing obesity. Poorer people or low-income American Family believe junk is cheap to buy. Also buying fast food is more of a convenient than cooking at home, which is refer to as a job by most.
worldwide to serve the customers and is famous for the variety of products that it provides in the
A lot of studies tried to count how many calories that people consume through out the day. The study says that 11% the average American adult can consume comes from fast food. However, it is considered as good news because there had been research few years ago and the percentage was higher than it is now. Also in the study it says that people often think that more wealthy people can eat salads and healthy, but it is not. Also black people consume more fast food than Hispanic and white people. Younger adults from age twenty consumed more fast food than older people. Fast food covers on the healthy choices because it can sometimes taste better.
There was also a study that was published by the American Journal of Clinical Nutrition stating that it “found the average American gets 27 percent of his or her total daily energy from junk foods” (Chan). In addition, the Palo Alto Medical Foundation claims that “In fact, over 25 percent of Americans consume fast food every day” (Fast Food). Junk food is often associated medically by foods that have many, if not too many, calories with little to no nutritional value. The introducing of junk food instead of symbols of liberty serves to emphasize that Americans consuming these products more than often or these products are becoming resources to fuel their average day. Almost one third of daily calories provide little to no nutrition, and more than one fourth of Americans consume fast food every day. These statistics are fact, which are hard, and cold truths, and represent the main reason why Americans are becoming
Using SWOT analysis, it's possible to analyze a case study for identifying points of internal strengths and weaknesses in any given organization, as well as the external opportunities and threats facing this organization (Donohue, Adinolfi and Shrestha, 2009). In this short essay, the SWOT analysis framework is applied to the case about Wendy's International Inc.
a. Did you know that most Americans eat three burgers a week and that 81% of Americans consume junk food while driving? It comes as no surprise, since people spend more time on the road nowadays (Stefanov, Sebastien).
Kentucky Fried Chicken (KFC) is a popular fast food chicken restaurant chain around the world. (Bell, Shelman, 2011) It is one of the subsidiary of Yum Brand. This company also operates the Pizza Hut and Taco Bell. (Yum! Brands, Inc, 2016) KFC was founded by Harland Sanders in 1952. (Bell, Shelman, 2011) Sanders was successful in creating the brand, even the logo of KFC brand is the portrait of him. He became a notable figure in American history thanks to his great contribution on creating KFC brand. Nowadays, KFC becomes more and more popular, the sales ranking of KFC was the 11th among the worldwide restaurant brands. (The QSR 50, 2015) The sales of KFC in 2014 was 4200 million dollars. (Details in Appendix 1) It means KFC has a large quantities of consumption needs. Actually, KFC has 14,577 restaurants around the world and 70% of them are located outside America (Yum Brand Annual Report, 2015). The restaurant profit was increased year by year from 2013 to 2015. (Details in Appendix 2) Therefore, it is potential to enlarge the customer base by analyzing consumer behaviors.
Providing customers with the best of both worlds: west meets east. In addition to its radical strategic approach of localization with regard to its food, they extended that viewpoint when selecting their management team. By hiring Chinese executives, Yum! Brands is able to build relationships with the local suppliers more easily and quickly. It definitely helps with their competitive advantage that chicken is a staple meat in China. Given these factors, it is clear that KFC has a competitive advantage in this market. However, taking a closer look at the industry and thinking longer-term, the competitiveness is undesirable but there is still potential to improve profitability. See the analysis