Kfc Pest Analysis
Kentucky Fried Chicken, better known as KFC, was founded in 1930 by Harland Sanders and has quickly become the second largest fast food franchise worldwide. It owns majority of the market share in South Africa with around 840 stores, mainly due to chicken being the largest market share in fast food. KFC is under ownership of YUM! Brands. It is responsible for 23.5% of its remuneration and therefore is very successful. Despite this success, KFC is faces with many challenges in the micro, market and macro environments, these challenges will be further discussed in this task though a PESTLE analysis, Porter six model and a SWOT analysis. When faced with these challenged KFC must develop strategies to maintain or gain a competitive advantage. …show more content…
This means that KFC owns most of the market share and therefore is at a competitive advantage. PESTLE Analysis Political South Africa has a varying political stability. Ove the past few years there has been great political instability causing investors to pull out and South Africa being downgraded to junk status. This has a negative impact on the economy which causes increase in unemployment which in turn results in a decrease in sales which negatively impacts KFC. Also with political unrest, it causes people to fear and often immigrate or move. This could result in less sales for KFC in that area however by placing more KFCs on by petrol stations, people will pass these while moving. This could increase turnover. Economical In the 2018 budget speech it was announced that VAT (value added tax) is to be increased from 14% to 15%. This will in turn force KFC to increase the prices of its products which will negatively impact sales (therefore negatively influencing turnover) as the price of most items will have increased and customers may not have the money to spend on KFC or they may not want to pay the increased amount for KFC’s
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