Kfc Case Study
History Kentucky Fried Chicken was founded by Harland Sanders in 1955. However, the idea about KFC's fried chicken actually goes back to 1930 when Sanders developed a secret recipe for cooking chicken under pressure. Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. Its primary focus is fried chicken but it also offers roasted chicken and chicken in form of wraps, salads and sandwiches.
Point of view Tony Wang – KFC’s vice president of Southeast Asia
Time Context 1930s Sanders developed a secret recipe for cooking chicken. Sanders developed a secret recipe for cooking chicken.
2008 The Colonel has a new look. KFC updates one of the most recognized, respected and beloved brand icons with a new logo.
2009 KFC introduces Kentucky Grilled Chicken™ - a better-for-you option for health conscious consumers who love the flavor of KFC.
Statement of the Problem Should KFC penetrate the Chinese market and established its first ever restaurant in mainland China, the world’s most populous country?
Facts of the Case SWOT Analysis
Strengths
Very strong internationally.
Strong cash flow.
Strong trademarks recipes
Pioneer among chicken restaurants.
Market leader.
Distribution strategy
Weaknesses
Question of over franchising leads to loss of control and quality.
Management shift.
Lack focus on research and development.
Plagued with international operating problems.
Opportunities
International beef scare from mad-cow and hoof and mouth disease.
Earn big profits as the population grows.
Threats
Health trend.
The market is already highly saturated.
Alternative Courses of Action
1. Enter the Chinese market now.
Advantages
China, being the world’s largest populated country, offers great business opportunities due to its rapid economic growth and huge market.
Lesser competition
Disadvantages
Risky
Government intervention and incompatibility of culture.
2. Hold off for the present from China
Point of view Tony Wang – KFC’s vice president of Southeast Asia
Time Context 1930s Sanders developed a secret recipe for cooking chicken. Sanders developed a secret recipe for cooking chicken.
2008 The Colonel has a new look. KFC updates one of the most recognized, respected and beloved brand icons with a new logo.
2009 KFC introduces Kentucky Grilled Chicken™ - a better-for-you option for health conscious consumers who love the flavor of KFC.
Statement of the Problem Should KFC penetrate the Chinese market and established its first ever restaurant in mainland China, the world’s most populous country?
Facts of the Case SWOT Analysis
Strengths
Very strong internationally.
Strong cash flow.
Strong trademarks recipes
Pioneer among chicken restaurants.
Market leader.
Distribution strategy
Weaknesses
Question of over franchising leads to loss of control and quality.
Management shift.
Lack focus on research and development.
Plagued with international operating problems.
Opportunities
International beef scare from mad-cow and hoof and mouth disease.
Earn big profits as the population grows.
Threats
Health trend.
The market is already highly saturated.
Alternative Courses of Action
1. Enter the Chinese market now.
Advantages
China, being the world’s largest populated country, offers great business opportunities due to its rapid economic growth and huge market.
Lesser competition
Disadvantages
Risky
Government intervention and incompatibility of culture.
2. Hold off for the present from China