Not to Kfc swot analysis location in china, the possibility of establishing the first Western style fast-food operation in China as a historic opportunity for the company.
Local fast food restaurant chains. Having experienced the initial surprises brought by a never-seen western lifestyle, Chinese consumers have gradually calmed down and their consumption attitudes towards foreign products are getting more reasonable.
This means can satisfy young consumers who are more open and acceptable to the foreign flavors. Quality of Government Threat A communist government with strict foreign investment laws rules China.
Furthermore, supplies of poultry are readily available. It also involves high financial risk and little country-level flexibility and responsiveness. Should KFC be pursuing the Chinese market at the present time?
Franchising, Wholly owned subsidiary and Joint venture. Wide audience reach does not only help the company to target more customers and increase brand awareness, but also to introduce new services, such as home delivery. Such an international business strategy will attempt to solve many logistics problems such as access to good quality chicken and other supplies, ease the access to Chinese market, share risk with a local entity, utilize ways to cut bureaucratic red-tape and finally, serve as a sign of commitment to the host government increasing goodwill.
KFC receives part of its income from foreign operations. Availability of Supply Strength There is ready access of quality poultry in the major metropolitan areas such as Shanghai, Guangzhou and Beijing.
Should KFC be pursuing the Chinese market at the present time? The changing demographics are also creating new pressures on the fast food brands.
Availability of Supply Strength There is ready access of quality poultry in the major metropolitan areas such as Shanghai, Guangzhou and Beijing. In Shanghai and Beijing for example there are a number of spicy food options available.
Product Consumption Strength Chicken has long been regarded as a kind of nutritious food, which is especially good for the patients, the elders and children. KFC could introduce new meals to its menu and offer pork, beef or only vegetarian meals, which would target wider consumer group and would result in more costumers.
Over the years, KFC has been contracting suppliers, which supplied contaminated poultry to KFC or were mistreating chicken, thus resulting in falling sales and damaged reputation.
Usually, the more valuable a brand is the better it is recognized worldwide. Such menu offering prompts protests by organizations that fight obesity and hence, decreases KFC popularity.
Beijing is the center for most political activities and provides the necessary access to government agencies and business regulatory bodies. Rising operational, labor and raw material costs The costs of operation, labor and raw material are rising globally.
It was also the first Quick Service Restaurant brand to have entered China in Given how tough this industry is, fast food companies must think of ways to differentiate themselves to gain an edge over the competition and be clearly recognized by the market.
They are looking for products cooked in safe and hygienic oils without any trans-fats.
Moreover, chicken is a more popular meal than hamburgers in most Asian countries and KFC has the opportunity to offer an American style experience that is different from most other food establishments.
Moreover, chicken is a more popular meal than hamburgers in most Asian countries and KFC has the opportunity to offer an American style experience that is different from most other food establishments. The risk of domestication measures may be imposed by the host government, often leading to major financial losses for the foreign investor.
The company is able to deliver interesting new products and services, including the McCafe which offers a sit-in and drive-thru cafeteria service.
In order to serve large numbers of customers due to the sheer size of the population, the right cultural fit of the business restaurants must be highly functional and effective. Also, it has a large population of nearly 9 million inhabitants.
Franchisee operations related issues are also common across quick service restaurant brands. Such an international business strategy will attempt to solve many logistics problems such as access to good quality chicken and other supplies, ease the access to Chinese market, share risk with a local entity, utilize ways to cut bureaucratic red-tape and finally, serve as a sign of commitment to the host government increasing goodwill.
Moreover, the brand has innovated its menu to add variety and freshness. Companies conduct a SWOT before they embark on a new strategy or before they make an important business move like investing in a new project] Sources: As KFC continues to operate more or less the same way, there is high probability for more expensive lawsuits to come.
Brand awareness also helps to introduce new products or sell the current ones faster as the company needs to spend less money on advertising.
Due to government and various organizations attempts to fight obesity, people are becoming more conscious of eating healthy food rather than what KFC has mainly to offer in its menu. Furthermore, it received bad publicity for selling chicken wing with kidney.No matter considering the number of restaurants, profit or market shares, KFC dominants the Chinese food market with branches over China and a speed of new branches annually, unmatched by its arch rival and world market leader McDonald (John, ).
This McDonald’s SWOT analysis reveals how the most successful fast-food chain company of all time uses its competitive advantages to continue dominating fast-food industry.
It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Transcript of SWOT Analysis Of KFC.
SWOT Analysis Of KFC Company Introduction Strength KFC is not as large a restaurant chain in North America. However, in China, KFC established itself earlier than McDonalds.
In that case, KFC won the market of this country which has a huge population. Swot Analysis Of. Untitled Prezi. More prezis by.
Is Tony Wang correct in assuming that China is an ideal market for KFC? Should KFC be pursuing the Chinese market at the present time?
Considering China as a strategic location was based from a SWOT analysis. SWOT Analysis of KFC. • It has the well-built location, motivated staff, store management and franchises. • It has a first-class image all over the world and is globally located for many years.
SWOT Analysis of ADIDAS 32 views; Pestle Analysis of Nissan 30 views. SWOT Analysis of KFC (Kentucky Fried Chicken) KFC has seen a lot of growth in the past few years in the Asian markets. China has remained at the centre of this growth story.