SWOT Analysis ÃÂ¡V KFC's Resource Strengths and Weaknesses and its External Opportunities and Threats
In evaluating how well a company's present strategy is working, a proper understanding of the company's resource capabilities and deficiencies, its market opportunities, and the external threats to its future is essential. The really valuable part of SWOT analysis is understanding and evaluating the strengths, weaknesses, opportunities, and threats and drawing conclusions whether a firm's business position is fundamentally healthy or unhealthy. In a nutshell, SWOT analysis is a basis for action.
KFC, being one of the world's most recognizable brands, has its own internal strengths and weaknesses and external opportunities and threats, which are identified and analyzed below.
'Kentucky Fried Chicken Corporation (KFC) was the world's largest chicken restaurant chain and the third largest fast-food chain in 2000' (Krug 2001, cited in Thompson and Strickland 2003, p. C-203). The statement suggests that the brand-name image or the company reputation of KFC is very strong.
Such buyer goodwill can be classified into valuable intangible assets, which is an internal strength itself giving KFC enhanced competitiveness. Also, KFC was one of the first fast-food chains to go international in the late 1950's and was one of the world's most recognizable brands. This means that KFC had a high degree of organizational agility in gaining wide geographic coverage and had a strong global distribution capability. Such competitive capability can be identified as KFC's internal strength. KFC's international strategy was to grow its company and franchise restaurant base through several high-growth markets. This suggests that the company was able to evaluate the right market opportunities available of serving additional customer groups or expanding into new geographic markets and market openings to extend the company's brand name or reputation to new geographic areas.
'According to the National Restaurant Association,