Fast Food Industry Analysis: KFC

This assignment delves into a comprehensive analysis of KFC's position within the global fast food industry. It examines their marketing strategies, focusing on elements like branding, pricing, and distribution. The analysis also explores KFC's competitive advantages, leveraging frameworks such as Porter's Five Forces and VRIN, to understand their strengths in the market. Additionally, the assignment investigates KFC's operational strategies, considering factors such as supply chain management and food safety practices.

Running head: STRATEGY ANALYSIS OF KFC COMPANY
Strategy Analysis of KFC Company
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1STRATEGY ANALYSIS OF KFC COMPANY
Table of Contents
1. Company Description..................................................................................................................2
2. PESTEL Analysis of KFC Singapore..........................................................................................2
3. Porter’s Five Forces Analysis of KFC Singapore.......................................................................5
4. Recommendations........................................................................................................................7
5. Conclusion...................................................................................................................................8
References......................................................................................................................................10

2STRATEGY ANALYSIS OF KFC COMPANY
1. Company Description
KFC (Kentucky’s Fried Chicken) was founded in the year 1929 and was a restaurant that
served fast foods to the customers (Hawkes et al., 2013). The company was founded in
Louisville, Kentucky and positioned itself as the world’s common chicken restaurant chain that
only focuses on its original recipe for preparing food for its consumers. The food offerings of the
company includes Kentucky grilled chicken, extra chicken, original recipe strips, honey BBQ
wings and home-style side dishes along with freshly prepared chicken sandwiches (Chhabra &
Kiran, 2015). In the recent years, more than 12 million consumers are served by KFC. Moreover,
the restaurant has more than 5000 food chains in US and Singapore. The company also has more
than 15000 business units all over the world. The secret blend having 11 spices and herbs made
the original recipe of KFC fried chicken renowned all through the world. Consumers all through
the world and in Singapore enjoy more than 300 food items from KFC (Dey, 2016). Moreover,
Singapore KFC is recognized from NCSS’s disability campaign to be among the Singapore’s
leading employers of people with disabilities. KFC Singapore has opened its 60th restaurant in
Singapore. The company offers best ingredients from sustainable suppliers along with adopting
strict along with maintaining stringent quality control measures (Hawkes et al., 2013).
2. PESTEL Analysis of KFC Singapore
KFC conducted PESTEL analysis which can alter their global business strategy. PESTEL
analysis for the company is explained under:
Political  KFC Singapore offers an effective fast
food service to its target consumers. In

3STRATEGY ANALYSIS OF KFC COMPANY
order to attain their business goals the
company has prepared a political
system which guides them or can be
considered as guides’ service (Fung,
2014)
 The company makes a contract with
their staff along with making a pension
fee. The company also provides the
alternative in purchasing KFC (Hawkes
et al., 2013)
 The consumers feel better when KFC
Company offers them superior services.
KFC Cafeterias offers better food in
comparison to its competitors.
Economical  Considering the economic factors, it
can be stated that KFC has set low
prices for all its products.
 The company offers food in packets
and provides people with the
opportunity to attain discounts that
motivates the consumers to purchase
from KFC.

4STRATEGY ANALYSIS OF KFC COMPANY
 The company has the capability to
success in Singapore market with lower
price and highly satisfying service
(Hawkes et al., 2013).
Social  KFC is positioned as one of the
renowned global company that has
initiated its business operations a long
time ago and in the recent years has
positioned itself among the largest
companies in the world.
 The company has successfully
developed its social connection all over
the world along with Singapore with
other companies (Heinz, 2013).
 KFC also supported several events and
sponsored them for social causes along
with providing donations to poor
people
Technological  In an attempt of globalizing their
business KFC focuses on using modern
technology for advertising its products
(Johnson et al., 2013).

5STRATEGY ANALYSIS OF KFC COMPANY
 The company has developed its own
website to make its consumers just find
their desired products for ordering it
online and can also attain all the
relevant information on KFC through
online medium (Hawkes et al., 2013).
 In Singapore the consumers can order
their food through ordering over phone.
Environmental  Environmental factor analysis serves as
most important evaluation that can be
conducted by a company (Kang, 2015).
 Devoid of analyzing environment, KFC
cannot successfully operate its business
as this aspect includes consumers from
where they can attain their profit
through selling their food products.
 The restaurant uses highly sustainable
products for preparing their food items
and offers it’s to consumers through
maintaining health and safety
standards.

6STRATEGY ANALYSIS OF KFC COMPANY
Legal  KFC is positioned all over the world as
a legal company. The company has its
business under Yum Brands
 For maintaining the law and order
situation KFC operates its international
business in compliance to local laws of
the nation (Rijal, 2015).
3. Porter’s Five Forces Analysis of KFC Singapore
Porters’ five forces analysis id carried out for KFC for this is aimed at analyzing the
competitive position of the company align with evaluating the most effective manner in which it
can enhance its products and services for thriving within an increasing competitive international
market (Ruiet al., 2016). The aspects of porters five forces for KFC is explained below:
 Threat of new entrants: Fast food market chain is observed to be difficult to penetrate
because of several competitors. Products of KFC are observed to face tough competition
from Radix fried chicken that is new restaurant. This restaurant has attained popularity as
it offers fresh menu that is appealing for a huge consumer base (Shuailing & Zhi, 2015).
However, KFC has attained high advantages of being a renowned international fast food
brand. Due to its increased international presence, it is easier for the consumers of the
restaurant to go for KFC rather than other fast food chains unless new entrants offers any
innovative menu in comparison to KFC (Hawkes et al., 2013).

7STRATEGY ANALYSIS OF KFC COMPANY
 Threat of substitute products: There are several other fast food restaurants that provide
identical products those are offered by KFC and this is offering them the advantages to
operate its business successfully. For example, Popeye’s Louisiana Kitchen has
positioned itself as one of the major competitors of KFC (Sohn, 2015). This is for the
reason that this restaurant offers innovative side dishes like Cajun Gravy, mashed
potatoes and rice along with offering the customers with mild spicy chicken dishes. This
has made this fast food restaurant popular enough. Considering the same, KFC has
developed a strategy of offering Wi-Fi services along with offering morning services.
 Bargaining power of suppliers: KFC has attained great access to several suppliers of
their major product that is fried chicken. This offers the restaurant with flexibility to work
efficiently with its best suppliers (Trematerra, 2013). For examples over the past few
years, the company has terminated the agreement with one of their chicken suppliers
because of crude slaughtering of the chicken.
 Bargaining power of buyers: The purchasers of the KFC Company have attained
increased access to identical products in outlets that includes Subway, McDonalds and
Pizza Hut. This makes it highly complex for the KFC for increasing prices as there is
increasing competition in comparison to its business rivals (Hawkes et al., 2013).
 Intensity of competitive rivalry: The fast food market is increasingly competitive.
There is an increased competition that the KFC faces increased competition from fast
food chains particularly the Mc Donald’s (Xin, 2015). This has taken place because of the
reason that KFC to develop certain mechanisms that makes sure it competes in the market
in a better manner. Among the most effective methods that was used by KFC has used to
retain all its consumers through introducing the smart card for the children that provides

8STRATEGY ANALYSIS OF KFC COMPANY
them with discounts in KFC along with other renowned outlets which includes Sunway
Lagoon, MPH Bookstore and Zoo Melaka (Hawkes et al., 2013).
Porters five forces analysis of KFC concluded the fact that the company is not well prepared
for its strong competitors that was observed through evaluation of bargaining power of
consumers and suppliers to that great extent (Wang, 2014). Rivalry among the competitors of
KFC that is not impacting in any way and the company implements strategic leadership for such
purpose and for fully understanding the strategy in consideration to the opportunity (Hawkes et
al., 2013).
4. Recommendations
After conducting the PESTEL and Porters five forces analysis of KFC it is gathered that the
company has dealt with several challenges that can be faced by the company in maintaining its
strategic position. Such recommendations are explained under:
 Focusing on healthy food: In the recent years, the consumers are observed to be highly
health conscious all over the world. For this reason, these consumers have stopped having
the fast food items that includes KFC fried chicken that can result the company to lose
their business. Considering the same, KFC must consider including healthier food items
in their menu that will be made of vegetables.
 Expanding the business within all divisional cities: It is observed that products of KFC
are in high demand in the large cities of Singapore and in Bangladesh. Considering the
same, the company can make attempts in establishing business units in these divisional
cities for expanding their business.

9STRATEGY ANALYSIS OF KFC COMPANY
 Set highly convenient pricing menu: Considering the environment analysis, it is
recommended that KFC Company must introduce a highly convenient pricing menu in
order to attract all its new consumers specially the students.
 Improving employee motivation: KFC is recommended to develop and include their
improved motivational strategy towards their employees that can further decrease the
turnover rate of the company. Such strategy can facilitate the company in offering better
services that can further boost the satisfaction rate of all its consumers all over the world.
 To deal with the problem of decreasing market share and business efficiency that has
resulted from PepsiCo Company’s centralization strategy that gradually decentralized the
company to become semi-autonomy. The managers of KFC can spend more time on
making effective corporate strategic decisions. Decentralization can facilitate KFC in
attaining ease to deal with the diversity of local situations along with responding to
market fluctuations. This strategy implementation can also motivate the employees of
KFC along with increasing their efficiency, productivity and performance.
5. Conclusion
The objective of the paper was to conduct strategic analysis of KFC Company and
analyze its competitive environment. Such analysis was conducted to provide the company will
effective strategic recommendations that can facilitate the company in improving its position in
the international market. From analysis conducted in the paper it was gathered that KFC
Singapore offers an effective fast food service to its target consumers. In order to attain their
business goals the company has prepared a political system which guides them or can be
considered as guide’s service. In an attempt of globalizing their business KFC focuses on using
modern technology for advertising its products. Environmental factor analysis serves as most

10STRATEGY ANALYSIS OF KFC COMPANY
important evaluation that can be conducted by a company. The paper also revealed that Products
of KFC are observed to face tough competition from Radix fried chicken that is new restaurant.
This restaurant has attained popularity as it offers fresh menu that is appealing for a huge
consumer base. However, KFC has attained high advantages of being a renowned international
fast food brand. KFC is recommended to develop and include their improved motivational
strategy towards their employees that can further decrease the turnover rate of the company.
Such strategy can facilitate the company in offering better services that can further boost the
satisfaction rate of all its consumers all over the world.