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Strengths And Poaknesses Of Kfc's Market Environment

1404 Words6 Pages

Rationale

The aim of this research task is to analyse and investigate various aspect of the Yum! Brand subsidiary, Kentucky Fried Chicken, colloquially referred to as KFC. KFC will be analysed through websites, brochures, journal articles and an interview with an assistant manager, Evidence, of the Van Riebeeck franchise in Edenvale. The intention of the task is to use these sources of information to determine the strengths and weaknesses of KFC, as well as opportunities and threats to KFC. With these sources, a PESTLE analysis will be conducted to thoroughly determine where KFC could improve and where it holds a competitive advantage in its market environment. Porter’s model will be used to analyse the challenges facing KFC in the market environment. Finally, strategies of how KFC has maintained a competitive advantage will be reviewed, and furthermore, new strategies that could be useful to the company’s future will be discussed.

Background
KFC was founded in the USA in 1930 by Colonel Harland Sanders. KFC was introduced to the South African market in 1971, making it the oldest fast-food outlet in the country. KFC Africa’s CEO is Doug Smith, who is South African. The franchise currently has 800 branches open nationwide, which is far more than any other franchise. This means that KFC has good consumer loyalty, prices are reasonable and franchises are abundant, therefore accessible for all classes of people in the country. Due to South AFrica’s high Gini Coefficient,

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