Comprehensive SWOT Analysis Report: KFC's Market Position and Strategy

This report provides a comprehensive SWOT analysis of KFC, examining the company's internal and external factors impacting its operations, with a specific focus on both global and Middle East regions. The analysis details KFC's strengths, such as its global presence and brand recognition, including its secret recipe and growing vegetarian options. Weaknesses include franchise management issues and concerns about unhealthy food offerings. Opportunities involve market expansion and menu diversification, particularly with vegetarian options. Threats include intense competition, changing consumer habits, and rising raw material costs. The report references several academic sources to support its findings, offering a detailed overview of KFC's market position and strategic challenges.

Running Head: SWOT Analysis
Management

SWOT Analysis 1
Contents
SWOT Analysis...............................................................................................................................1
Strength........................................................................................................................................1
Weakness.....................................................................................................................................2
Opportunity..................................................................................................................................2
Threats.........................................................................................................................................3
References........................................................................................................................................4

SWOT Analysis 2
SWOT Analysis
The SWOT analysis includes the factors that help the company to analyze the internal and the
external factors that can impact the working of the KFC. The SWOT analysis of the KFC is
discussed below and includes the Global as well Middle East regions perspective. The Middle
East regions consist of Cyrus, Turkey, Egypt, and various territories and states of Arabia
(Hollensen, 2015).
Strength
Global perspective- The Company is having the global presence as KFC is the world’s 2nd
largest restaurant chain. The company is having approximately 18,000 KFC outlets in 120
countries and the territories across the world. KFC brand is well known for the fried chicken
across the world, but now along with the Non-veg offering company is proving the Veg
Category. The company is leading in the world because of their secret recipe that contains 11
SWOT
Analysis
Strength
Weakness
Opportunity
Threats

SWOT Analysis 3
herbs and species. This recipe became the strength of the company and helped the KFC to
become the successful food chain across the world (Shuailing, & Zhi, 2015).
Middle East Regions- Middle East regions are considered as the strong markets of the KFC.
The company is earning huge amount of revenue from the franchises and the licensee’s fees that
are established in Middle East regions. This is the reason company is having the strong brand
reputation along with the visibility and accessibility in Middle East regions. The accessibility of
the KFC outlets is more in the east regions which enhances the goodwill of the company.
Weakness
Global perspective- The management of the franchises across the world is bringing trouble for
the KFC. The KFC found that they closed many outlets because they found the conflicting
operational issues among the KFC and its franchisees. The food provided by the KFC includes
the unhygienic calories and unhealthy fats, which affects the business of the KFC because
nowadays the people are becoming health conscious (Hollensen, 2015).
Middle East Regions- KFC Company is least interested to bring any development and
innovation in the Middle East regions and this is becoming a weakness for the company. The
company also faces problems related to the management of the franchises across the eastern
regions.
Opportunity
Global perspective- The KFC brand stills have the market expansion options that can be used
by the company as the lifestyle of the customer is changing. The company has the opportunity to
get the specialty in the vegetarian menu; this will leads to the growth and success of the

SWOT Analysis 4
company. Penetration can be adopted by the company which will help the company in enhancing
the growth and becoming the leading player in the food chain industry (Zhuang, & Jiang, 2016).
Middle East Regions- Company has the opportunity to open many more outlets in East regions.
Opening new outlets will enhance the growth and profit of KFC. The company has the
opportunity to bring more of the vegetarian's dishes as most of the people like to have the
vegetarian dishes instead of the non-veg.
Threats
Global perspective- The company has to compete with different competitors across the world,
this is the reason KFC is not a leader in the industry. The change in the eating habits of the
customers is leading and become a threat, the habits are changing due to the awareness of the
healthy products. The increase in the prices of the raw material is one of the threats. The closure
of the franchises might create the impact on the brand image of the company which is again a
threat.
Middle East Regions- The leading competitor McDonald is giving competition to the KFC in
the Middle East regions as well. The threat of the competition is increasing and it is becoming
the threat to the company. The prices of the raw material are also increasing which made the
KFC think that if they increase the price they will not be able to compete in the market (Mahidin,
Othman, & Saifudin, 2016).

SWOT Analysis 5
References
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Mahidin, N., Othman, S. N., & Saifudin, A. M. (2016). Halal logistics issues among the food
industry companies: A preliminary study.
Shuailing, L. I., & Zhi, Y. U. (2015). KFC development in Chinese market–based on the social
responsibility and ethics. International Business and Management, 10(3), 142-146.
Zhuang, K., & Jiang, Y. (2016). An analysis of the development of the Chinese fast food
industry. Journal of Asian Business Strategy, 6(5), 85.