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Kentucky Fried Chicken
History
Colonel Harland D. Sanders from Corbin Kentucky founded Kentucky Fried Chicken. ... His secret recipe consisted of a secret blend of spices and herbs that made his chicken famous throughout the world. Kentucky Fried Chicken now serves nearly 6 billion pieces of chicken annually in more than 84 countries around the world. ... The new company was based out of KFC’s headquarters, which was located in Louisville, Kentucky. ... KFC has grown to become the largest chicken restaurant chain in the world, but due to its frequent changing of ownership KFC has become vulnerable to intense competition from other leaders in the fast food industry. ... KFC is the global leader in chicken. ... ) Cash generated after capital spending
• Operating margin
• Return on invested capital
Kentucky Fried Chicken
Strengths/Weaknesses/Treats/Opportunities
Strength Weakness
Long history To slow to bring new products to market
Easy and recognizable brand in chicken No innovation of new products
Leader in chicken market Only a chicken store
Globally positioned Repositioned too many times
Secret recipe Declining market share
Name recognition and reputation
Treats Opportunities
Restaurant industry Focused strategies throughYUM! Brands
Other chicken chains Foreign markets
Dinner houses
Saturation of fast food market
Health Conscious Consumers
Changing demographics Changing demographics
Rising sales of substitute products
No defined target market
Strengths
KFC has a very long history and has the most recognizable brand in chicken. ... KFC’s secret recipe of 11 herbs and spices has made it the leader in chicken for the last fifty years. ...
KFC’s market share from 1989 – 1999 declined from 71% of the fast food chicken market share to 56% of the market share. ... The cultural differences took the focus away from the chicken business. ...
KFC still faces challenges from other restaurants in the area of offering choices other than chicken. Many fast food chains have expanded their menu’s, such as MacDonald’s not only offers hamburgers they offer chicken sandwiches, and fish sandwiches. ... The second largest threat would be other chicken chains that are now adding other types of food to their product lines. ... Jack in the Box has added chicken and teriyaki with rice, Domino’s has introduced chicken wings and Pizza Hut has offered rotisserie-cooked chicken. ... KFC still is known best for it’s “fried” chicken, which would put them at a disadvantage in the health conscience market. ...
Porter’s Five-Force Model of Industry Attractiveness
Kentucky Fried Chicken is a leader in the chicken segment of the fast food industry. As of 2000, they were number 1 in the fast food chicken segment and number 3 overall in the general fast food industry (SMSU 1999). Doing business over the last 50 years, KFC has evolved form a small chicken store founded by one man into a global enterprise with hundreds of franchisees located across the globe. ... Locally, KFC has the other chicken fast food restaurants like Church’s and Boston Market to deal with in addition to other fast food restaurants like McDonald’s and Burger King that expand their menus to include some chicken items. ... Over the last few years, the chicken industry has seen an exponential rise in demand due to the increase in health conscious consumers. ... Ten years ago, KFC drew a large proportion of customers in families looking for the large bucket of chicken, while, now, the typical consumer may be stopping in for a quick lunch consisting of a small combo meal or a chicken salad/sandwich combo. ... The early 1990’s saw an introduction of Rotisserie Chicken, Chunky Chicken Pot Pie, and the Colonel’s Crispy Strips (SMSU 1999). To address the healthy part of their menu, KFC has advertised its high content of white meat chicken in its products. This is important to the healthier eaters as the white meat is the leanest part of the chicken and, therefore, lowest in fat. ... Locally they deal with other fast food restaurants that include chicken items on their menu to take advantage of brand loyalty to keep their customers. KFC also deals with a few traditional chicken fast food restaurants like Church’s and Boston Market, which offer just as many chicken products, but may not have the number of stores to compete overall in the national market. Competition also comes from traditional sit down restaurants like Max & Erma’ and Chili’s which include chicken meals and sandwiches on their menu. This appeals to the consumer that is not looking for convenience and quick service, instead just a quality chicken meal. ... Globally the only brand name restaurants that may compete are the fast food restaurants like McDonald’s and Burger King, that are not necessarily primary competitors in the chicken segment, but do draw sales away nonetheless.
Potential Entry of New Competitors – Low
To enter the market of providing chicken to consumers, an existing restaurant only needs to expand their menu. ...
Development of Substitute Products – High
Within the chicken industry, the ability of restaurants to develop products that compete with the traditional KFC chicken meals is very high. ... Many restaurants have different variations of the traditional chicken meal, including, but not limited to, chicken strips, sandwiches, salads, as well as, rotisserie and BBQ flavors. Also, an altogether different product family such as beef, pork, or fish, is already introduced and has an established industry that is just as easily accessed by consumers as the chicken industry. KFC recognizes this and has chosen to focus on the competition in the chicken market. ... By definition a substitute product should be an alternative to the chosen product, but, in the chicken industry, the only substitute products are still chicken based, which KFC feels is capable of providing to all consumers across the globe.
Bargaining Power of Suppliers – Low
In the US, the supply and demand of chicken restaurants and poultry producing farms is not really an issue. The introduction of technology has allowed suppliers to provide more chicken while using less chicken feed and at a lower cost. ... 7 million pieces of chicken annually (SMSU 1999), with the remainder being spread across all other segments and competitors. ...
Bargaining Power of Customers – High
The ability of customers to choose their preferred supplier of a chicken meal is as easy as ever. Depending on their location throughout the US or the world, the choices of restaurants that can provide a chicken sandwich or a chicken meal are in the hundreds. ... With the numerous choices available to consumers, the availability of chicken is very high, thus making the ability of consumers to choose different providers very easy. To the average consumer, various products ranging from a full meal to a sandwich or a salad can satisfy the craving for chicken. ... Brands restaurants, 12,095 (6,656 International) and (5,439 Domestic), as of September 7, 2002, are Kentucky Fried Chicken, KFC. ...
Market Share Breakdown:
Based on the text, KFC held 55% of the market share (2000) in the United States for the chicken restaurant market. ...
Recommendations
Since its creation KFC has established itself as a market leader in the chicken segment of the fast food industry. ... In closing, KFC has built a strong and loyal following in the chicken segment since the 1950’s. ... In addition, many of the emerging markets where KFC is deciding on whether to expand chicken is a major part of the local cultures diet. So for KFC to ignore many of these emerging markets for their shear potential growth, falling behind in the global fast food expansion and for the already prevalent local preferences toward chicken would be a mistake and not in the best interests of Yum! ...
References
Kentucky Fried Chicken Group Case Analysis. ... 2
Kentucky Fried Chicken
History
Colonel Harland D. Sanders from Corbin Kentucky founded Kentucky Fried Chicken. ... His secret recipe consisted of a secret blend of spices and herbs that made his chicken famous throughout the world. Kentucky Fried Chicken now serves nearly 6 billion pieces of chicken annually in more than 84 countries around the world. ... The new company was based out of KFC’s headquarters, which was located in Louisville, Kentucky. ... KFC has grown to become the largest chicken restaurant chain in the world, but due to its frequent changing of ownership KFC has become vulnerable to intense competition from other leaders in the fast food industry. ... KFC is the global leader in chicken. ... ) Cash generated after capital spending
• Operating margin
• Return on invested capital
Kentucky Fried Chicken
Strengths/Weaknesses/Treats/Opportunities
Strength Weakness
Long history To slow to bring new products to market
Easy and recognizable brand in chicken No innovation of new products
Leader in chicken market Only a chicken store
Globally positioned Repositioned too many times
Secret recipe Declining market share
Name recognition and reputation
Treats Opportunities
Restaurant industry Focused strategies throughYUM! Brands
Other chicken chains Foreign markets
Dinner houses
Saturation of fast food market
Health Conscious Consumers
Changing demographics Changing demographics
Rising sales of substitute products
No defined target market
Strengths
KFC has a very long history and has the most recognizable brand in chicken. ... KFC’s secret recipe of 11 herbs and spices has made it the leader in chicken for the last fifty years. ...
KFC’s market share from 1989 – 1999 declined from 71% of the fast food chicken market share to 56% of the market share. ... The cultural differences took the focus away from the chicken business. ...
KFC still faces challenges from other restaurants in the area of offering choices other than chicken. Many fast food chains have expanded their menu’s, such as MacDonald’s not only offers hamburgers they offer chicken sandwiches, and fish sandwiches. ... The second largest threat would be other chicken chains that are now adding other types of food to their product lines. ... Jack in the Box has added chicken and teriyaki with rice, Domino’s has introduced chicken wings and Pizza Hut has offered rotisserie-cooked chicken. ... KFC still is known best for it’s “fried” chicken, which would put them at a disadvantage in the health conscience market. ...
Porter’s Five-Force Model of Industry Attractiveness
Kentucky Fried Chicken is a leader in the chicken segment of the fast food industry. As of 2000, they were number 1 in the fast food chicken segment and number 3 overall in the general fast food industry (SMSU 1999). Doing business over the last 50 years, KFC has evolved form a small chicken store founded by one man into a global enterprise with hundreds of franchisees located across the globe. ... Locally, KFC has the other chicken fast food restaurants like Church’s and Boston Market to deal with in addition to other fast food restaurants like McDonald’s and Burger King that expand their menus to include some chicken items. ... Over the last few years, the chicken industry has seen an exponential rise in demand due to the increase in health conscious consumers. ... Ten years ago, KFC drew a large proportion of customers in families looking for the large bucket of chicken, while, now, the typical consumer may be stopping in for a quick lunch consisting of a small combo meal or a chicken salad/sandwich combo. ... The early 1990’s saw an introduction of Rotisserie Chicken, Chunky Chicken Pot Pie, and the Colonel’s Crispy Strips (SMSU 1999). To address the healthy part of their menu, KFC has advertised its high content of white meat chicken in its products. This is important to the healthier eaters as the white meat is the leanest part of the chicken and, therefore, lowest in fat. ... Locally they deal with other fast food restaurants that include chicken items on their menu to take advantage of brand loyalty to keep their customers. KFC also deals with a few traditional chicken fast food restaurants like Church’s and Boston Market, which offer just as many chicken products, but may not have the number of stores to compete overall in the national market. Competition also comes from traditional sit down restaurants like Max & Erma’ and Chili’s which include chicken meals and sandwiches on their menu. This appeals to the consumer that is not looking for convenience and quick service, instead just a quality chicken meal. ... Globally the only brand name restaurants that may compete are the fast food restaurants like McDonald’s and Burger King, that are not necessarily primary competitors in the chicken segment, but do draw sales away nonetheless.
Potential Entry of New Competitors – Low
To enter the market of providing chicken to consumers, an existing restaurant only needs to expand their menu. ...
Development of Substitute Products – High
Within the chicken industry, the ability of restaurants to develop products that compete with the traditional KFC chicken meals is very high. ... Many restaurants have different variations of the traditional chicken meal, including, but not limited to, chicken strips, sandwiches, salads, as well as, rotisserie and BBQ flavors. Also, an altogether different product family such as beef, pork, or fish, is already introduced and has an established industry that is just as easily accessed by consumers as the chicken industry. KFC recognizes this and has chosen to focus on the competition in the chicken market. ... By definition a substitute product should be an alternative to the chosen product, but, in the chicken industry, the only substitute products are still chicken based, which KFC feels is capable of providing to all consumers across the globe.
Bargaining Power of Suppliers – Low
In the US, the supply and demand of chicken restaurants and poultry producing farms is not really an issue. The introduction of technology has allowed suppliers to provide more chicken while using less chicken feed and at a lower cost. ... 7 million pieces of chicken annually (SMSU 1999), with the remainder being spread across all other segments and competitors. ...
Bargaining Power of Customers – High
The ability of customers to choose their preferred supplier of a chicken meal is as easy as ever. Depending on their location throughout the US or the world, the choices of restaurants that can provide a chicken sandwich or a chicken meal are in the hundreds. ... With the numerous choices available to consumers, the availability of chicken is very high, thus making the ability of consumers to choose different providers very easy. To the average consumer, various products ranging from a full meal to a sandwich or a salad can satisfy the craving for chicken. ... Brands restaurants, 12,095 (6,656 International) and (5,439 Domestic), as of September 7, 2002, are Kentucky Fried Chicken, KFC. ...
Market Share Breakdown:
Based on the text, KFC held 55% of the market share (2000) in the United States for the chicken restaurant market. ...
Recommendations
Since its creation KFC has established itself as a market leader in the chicken segment of the fast food industry. ... In closing, KFC has built a strong and loyal following in the chicken segment since the 1950’s. ... In addition, many of the emerging markets where KFC is deciding on whether to expand chicken is a major part of the local cultures diet. So for KFC to ignore many of these emerging markets for their shear potential growth, falling behind in the global fast food expansion and for the already prevalent local preferences toward chicken would be a mistake and not in the best interests of Yum! ...
References
Kentucky Fried Chicken Group Case Analysis. ... 2
Kentucky Fried Chicken
History
Colonel Harland D. Sanders from Corbin Kentucky founded Kentucky Fried Chicken. ... His secret recipe consisted of a secret blend of spices and herbs that made his chicken famous throughout the world. Kentucky Fried Chicken now serves nearly 6 billion pieces of chicken annually in more than 84 countries around the world. ... The new company was based out of KFC’s headquarters, which was located in Louisville, Kentucky. ... KFC has grown to become the largest chicken restaurant chain in the world, but due to its frequent changing of ownership KFC has become vulnerable to intense competition from other leaders in the fast food industry. ... KFC is the global leader in chicken. ... ) Cash generated after capital spending
• Operating margin
• Return on invested capital
Kentucky Fried Chicken
Strengths/Weaknesses/Treats/Opportunities
Strength Weakness
Long history To slow to bring new products to market
Easy and recognizable brand in chicken No innovation of new products
Leader in chicken market Only a chicken store
Globally positioned Repositioned too many times
Secret recipe Declining market share
Name recognition and reputation
Treats Opportunities
Restaurant industry Focused strategies throughYUM! Brands
Other chicken chains Foreign markets
Dinner houses
Saturation of fast food market
Health Conscious Consumers
Changing demographics Changing demographics
Rising sales of substitute products
No defined target market
Strengths
KFC has a very long history and has the most recognizable brand in chicken. ... KFC’s secret recipe of 11 herbs and spices has made it the leader in chicken for the last fifty years. ...
KFC’s market share from 1989 – 1999 declined from 71% of the fast food chicken market share to 56% of the market share. ... The cultural differences took the focus away from the chicken business. ...
KFC still faces challenges from other restaurants in the area of offering choices other than chicken. Many fast food chains have expanded their menu’s, such as MacDonald’s not only offers hamburgers they offer chicken sandwiches, and fish sandwiches. ... The second largest threat would be other chicken chains that are now adding other types of food to their product lines. ... Jack in the Box has added chicken and teriyaki with rice, Domino’s has introduced chicken wings and Pizza Hut has offered rotisserie-cooked chicken. ... KFC still is known best for it’s “fried” chicken, which would put them at a disadvantage in the health conscience market. ...
Porter’s Five-Force Model of Industry Attractiveness
Kentucky Fried Chicken is a leader in the chicken segment of the fast food industry. As of 2000, they were number 1 in the fast food chicken segment and number 3 overall in the general fast food industry (SMSU 1999). Doing business over the last 50 years, KFC has evolved form a small chicken store founded by one man into a global enterprise with hundreds of franchisees located across the globe. ... Locally, KFC has the other chicken fast food restaurants like Church’s and Boston Market to deal with in addition to other fast food restaurants like McDonald’s and Burger King that expand their menus to include some chicken items. ... Over the last few years, the chicken industry has seen an exponential rise in demand due to the increase in health conscious consumers. ... Ten years ago, KFC drew a large proportion of customers in families looking for the large bucket of chicken, while, now, the typical consumer may be stopping in for a quick lunch consisting of a small combo meal or a chicken salad/sandwich combo. ... The early 1990’s saw an introduction of Rotisserie Chicken, Chunky Chicken Pot Pie, and the Colonel’s Crispy Strips (SMSU 1999). To address the healthy part of their menu, KFC has advertised its high content of white meat chicken in its products. This is important to the healthier eaters as the white meat is the leanest part of the chicken and, therefore, lowest in fat. ... Locally they deal with other fast food restaurants that include chicken items on their menu to take advantage of brand loyalty to keep their customers. KFC also deals with a few traditional chicken fast food restaurants like Church’s and Boston Market, which offer just as many chicken products, but may not have the number of stores to compete overall in the national market. Competition also comes from traditional sit down restaurants like Max & Erma’ and Chili’s which include chicken meals and sandwiches on their menu. This appeals to the consumer that is not looking for convenience and quick service, instead just a quality chicken meal. ... Globally the only brand name restaurants that may compete are the fast food restaurants like McDonald’s and Burger King, that are not necessarily primary competitors in the chicken segment, but do draw sales away nonetheless.
Potential Entry of New Competitors – Low
To enter the market of providing chicken to consumers, an existing restaurant only needs to expand their menu. ...
Development of Substitute Products – High
Within the chicken industry, the ability of restaurants to develop products that compete with the traditional KFC chicken meals is very high. ... Many restaurants have different variations of the traditional chicken meal, including, but not limited to, chicken strips, sandwiches, salads, as well as, rotisserie and BBQ flavors. Also, an altogether different product family such as beef, pork, or fish, is already introduced and has an established industry that is just as easily accessed by consumers as the chicken industry. KFC recognizes this and has chosen to focus on the competition in the chicken market. ... By definition a substitute product should be an alternative to the chosen product, but, in the chicken industry, the only substitute products are still chicken based, which KFC feels is capable of providing to all consumers across the globe.
Bargaining Power of Suppliers – Low
In the US, the supply and demand of chicken restaurants and poultry producing farms is not really an issue. The introduction of technology has allowed suppliers to provide more chicken while using less chicken feed and at a lower cost. ... 7 million pieces of chicken annually (SMSU 1999), with the remainder being spread across all other segments and competitors. ...
Bargaining Power of Customers – High
The ability of customers to choose their preferred supplier of a chicken meal is as easy as ever. Depending on their location throughout the US or the world, the choices of restaurants that can provide a chicken sandwich or a chicken meal are in the hundreds. ... With the numerous choices available to consumers, the availability of chicken is very high, thus making the ability of consumers to choose different providers very easy. To the average consumer, various products ranging from a full meal to a sandwich or a salad can satisfy the craving for chicken. ... Brands restaurants, 12,095 (6,656 International) and (5,439 Domestic), as of September 7, 2002, are Kentucky Fried Chicken, KFC. ...
Market Share Breakdown:
Based on the text, KFC held 55% of the market share (2000) in the United States for the chicken restaurant market. ...
Recommendations
Since its creation KFC has established itself as a market leader in the chicken segment of the fast food industry. ... In closing, KFC has built a strong and loyal following in the chicken segment since the 1950’s. ... In addition, many of the emerging markets where KFC is deciding on whether to expand chicken is a major part of the local cultures diet. So for KFC to ignore many of these emerging markets for their shear potential growth, falling behind in the global fast food expansion and for the already prevalent local preferences toward chicken would be a mistake and not in the best interests of Yum! ...
References
Kentucky Fried Chicken Group Case Analysis. ... 2
Kentucky Fried Chicken
History
Colonel Harland D. Sanders from Corbin Kentucky founded Kentucky Fried Chicken. ... His secret recipe consisted of a secret blend of spices and herbs that made his chicken famous throughout the world. Kentucky Fried Chicken now serves nearly 6 billion pieces of chicken annually in more than 84 countries around the world. ... The new company was based out of KFC’s headquarters, which was located in Louisville, Kentucky. ... KFC has grown to become the largest chicken restaurant chain in the world, but due to its frequent changing of ownership KFC has become vulnerable to intense competition from other leaders in the fast food industry. ... KFC is the global leader in chicken. ... ) Cash generated after capital spending
• Operating margin
• Return on invested capital
Kentucky Fried Chicken
Strengths/Weaknesses/Treats/Opportunities
Strength Weakness
Long history To slow to bring new products to market
Easy and recognizable brand in chicken No innovation of new products
Leader in chicken market Only a chicken store
Globally positioned Repositioned too many times
Secret recipe Declining market share
Name recognition and reputation
Treats Opportunities
Restaurant industry Focused strategies throughYUM! Brands
Other chicken chains Foreign markets
Dinner houses
Saturation of fast food market
Health Conscious Consumers
Changing demographics Changing demographics
Rising sales of substitute products
No defined target market
Strengths
KFC has a very long history and has the most recognizable brand in chicken. ... KFC’s secret recipe of 11 herbs and spices has made it the leader in chicken for the last fifty years. ...
KFC’s market share from 1989 – 1999 declined from 71% of the fast food chicken market share to 56% of the market share. ... The cultural differences took the focus away from the chicken business. ...
KFC still faces challenges from other restaurants in the area of offering choices other than chicken. Many fast food chains have expanded their menu’s, such as MacDonald’s not only offers hamburgers they offer chicken sandwiches, and fish sandwiches. ... The second largest threat would be other chicken chains that are now adding other types of food to their product lines.
Approximate Word count = 20844
Approximate Pages = 83.4
(250 words per page double spaced)
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