SWOT Analysis for KFC, BFC, WALTON-

SWOT Analysis

The acronomy stands for strength, weakness, opportunities and threat

of an organization the SWOT analysis of KFC is given below-

 Strengths

Strengths can be found internally in a company and can be used to the

company’s advantage. The strengths identified are as follows:

1. KFC’s secret recipe

The secret recipe has long been a source of advertising and allowed
KFC to set itself apart from other food brands.

2. Recognition and reputation

KFC’s early entrance into the fast-food industry in 1954 allowed KFC to
develop strong brand name recognition and a strong foothold in the
industry. The Colonel is KFC’s original owner and a very recognizable
figure, both in the U.S. and internationally, in their new logo.

3. Traditional employee loyalty

As it is a renowned food brand, it has maintained a long and strong

network with their employees. In return they get a very strong
employee loyalty which is known as their unique company asset. They
provide their employees with various types of facilities other than
salary (long term contract, recognition, management training.) etc.

4. Improving operating efficiencies by reducing overhead and other

operating costs can directly affect operating profit

Due to the strong competition in the food market, the fast-food chains
are reluctant to raise prices to increase profit. Many of the chains are
turning to operating efficiencies to increase profit. For many
companies, operating efficiencies are achieved through improvements
in customer service, cleaner restaurants, faster and friendlier service,
and continued high-quality products.

5. Emotional benefit because of recognition

As KFC is a very well known food brand in the market, it was able to
create a very loyal group of customers who rely on their food quality.
This group of regular customers serves as an asset for the company.

6. Strong and experienced management

As KFC in BD is a franchise company, so it follows a systematic

management system. They are bound to follow a specific system. They
can not change it whenever they want. It has been followed
successfully for couple of years.

7. High quality and 100% pure product

As it follows a very systematic and secret recipe, they are able to

maintain a high quality in their food. As it is a franchise company, so
they are not allowed to change or share the recipe.  They are bound to
maintain a specific quality level in food making.

Weaknesses

1. KFC has a long time to market with new products

Because of the nature of the chicken segment of the fast food

industry, innovation was never a primary strategy for KFC. However,
during the late 1980’s, other fast food chains began to offer chicken as
a menu option.

2. High production cost comparing to the competitors companies

KFC has to maintain a quality level in food making. So their production

cost is higher then their competitors. To gain their production cost
they ask for a pretty much higher price for their fast food.

3. Lack of branch

KFC have only a few branches in the Dhaka city. They do not have
their branch in shopping mall like Bashudhara city like other fast food
brands like BFC or FFC.  As they have only few branches in the
renowned area, so they loss a huge number of customers residing in
other parts of Dhaka.

Opportunities

1. Increasing demand

The demand for fast food is increasing day by day. Formerly, people
used to have it occasionally. Now they like to have it regularly. Even in
occasions or party, they prefer fast food to desi food. So, it is a very
good opportunity for the fast food companies to sell their products to
customers.

2. Fondness of youth

Today’s youth are getting westernized. They are following all of latest
western fashion. They are following their food habit too.  Now they like
fast food very much. All of the fast food companies are using this
opportunity very intelligently.

3. Daily needed product

Now the children as well as their parents are passing a quality time of
the day outside their home. All of the food companies can take
advantage of this opportunity. As now people love fast food more, so
the fast food companies are enjoying the most benefits of this
opportunity.

Threats

1. Increasing competition and rising sales of substitute products

Faced by slowed sales growth in the fast-food industry, other

segments of the industry have turned to new menu offerings while KFC
still offers its limited choice of chickens.

2. Changing preferences of consumers

During the 1980s, consumers began to demand healthier foods and

KFC was faced with a limited menu consisting mainly of fried foods. In
order to reduce KFC’s image as a fried chicken chain, it changed its
logo from Kentucky Fried Chicken to KFC in 1991.

3. Inflation in local market

When the real value of money decreases it creates inflation in the

economy. During inflation, people have less money to spend as well as
the price of raw materials also rises. It creates threat for the overall
economy. As a result, the food market also gets affected by it.

4. Sharp rise in the production cost

Rise in the price of raw materials increases the total production cost.
So when the price of raw materials increases, KFC needs to increases
its price. As a result, consumers become less interested to spend a
huge amount of money on fast food.

5. Instability of the price of raw materials

In our country the price of chicken is not stable. So the fast food brand
like KFC faces a problem in setting their menu. The price of raw
materials changes almost everyday, but they can not change their
price list everyday.

BFC SWOT Analysis-

Strength-

1. BFC is the most popular an identifiable brand in fried chicken.

2. It has strong location, store management and motivated

workforce,

3. Maintaining their quality and recipe for customer satisfaction

4. Price is reasonable compare to other brand like KFC, Pizza hut.

Weakness-
 1. Lack of knowledge about their customers, need more marketing
and strategy to attract more customers

2. Need to increase more Brand value

3. BFC isn’t more innovative they are more focus on Chicken

products. It doesn’t offer new products

4. Need to more focus on their order placement area and indoor

decoration, need more space for customers, as well as need a
space for children playground.

Opportunities-

1. Increasing demand to all aged customers like Teenagers, middle

aged persons.

2. More focus on online food delivery to grab more customers

3. Need to focus more corporate order and build a good relationship

with corporate clients

4. Diversity into other fast food and meals

Threats-

1. BFC have strong competition in market with KFC, CFC, FFC,

Shorma House.

2. Increasing number of health-conscious consumers

3. Customers are more focus on ordering online where get

attractive promotional offers.

4. Changing the taste and preferences of customers, not

predictable.

WALTON SWOT Analysis-

Strength-
 1. Country wide retail sales store at suitable locations

2. Wide range and all varieties of consumer products.

3. Strong local presence

4. Low price quality, low-cost competitive advantages to customers

5. Strong knowledge about the market and customer’s demand

6. Usage of Advanced technology

7. Local brand loyalty

8. Own Manufacturing plant near the capital

9. Only company to manufacture Motorbikes

10. Affordability to all level customers

Weakness-

1. Unable to capture high class people as their customers

2. Relatively new in market compare to their brand

3. Production halted by lack of power

4. Lack of reliability and trust

5. Lack of skilled manpower

6. Proper monitoring problem

7. Low quality of software, hardware

8. Lack of customer service

Opportunities-

1. Wide Variety of products

2. Achievement of sales growth through new products

 3. More attracted job place for new talented people who newly
come to job market

4. Increasing sales in major cities

5. Using different strategies to reach Global

6. Only company to export electronics

7. Tax break on import of parts

8. New innovation and technology

Threats-

1. Unethical competition in market

2. Political conflict hampers the sales

3. More competitors in market like LG, Butter Fly, Singers etc

4. Change of customer demands

5. Consumers are more concern about international brand

6. Market share dominated by foreign company

7. Price inflation.

Porter Fiver Forces Analysis for KFC-

1. Threat of new entrants – KFC has medium level of Threat of new

entrants. Local brand are easily enter into market compare to
international brand, while international brand need to maintain rules
regulation and others things. KFC has strong brand value and well
recognized in worldwide that’s why who are brand conscious more focus
on quality, brand not in price. They maintain the product taste,
 restaurant ambience, and excellent customer service in worldwide has
made further raised the entry barriers to this industry. Thus, the threats
of new entrants for KFC is medium.
2. Threat of substitute products or services- Substitutes products for
KFC is high. There are lot of restaurants that are offering similar types of
products. Like Burger king, BFC, CFC all brands offer same types of
products to customers.
3. Bargaining power of suppliers- The main raw materials of KFC
include chickens, pepsi, coke, potatoes. Due to very frequent and bulk
order, there are large number of suppliers who agreed with KFC’s term
and condition and supply of required low materials. Because of large
number of orders and raw materials supply, suppliers are not able to
raise price and bargaining power of suppliers are low.
4. Bargaining power of buyers- Customers have now lot of similar
choices and substitute brand, so they have high and strong bargaining
power. Customers have many choices like BFC, CFC, Burger king, Herfy,
Shorma House, that’s why KFC also not able to raise their price. Because
of customers have number of choices, the bargaining power of buyers
are high.
5. Intensity of competitive rivalry- The fast-food business are more
competitive in market. KFC is also facing intense completion in local and
international market. International market KFC’s main competition with
McDonalds. To compete with intense market KFC come out with different
strategies like online order, quick delivery, differentiation in menu etc.

Porter Five forces Analysis for WALTON-

1. The intensity of industry competition: There are many
number of competitors for Walton brand like Singer, LG, Gree
etc , Local brand and international brand has strong footprint
in market, their sales growth also high, people are more brand
conscious. The intensity of industry competition is high.

2. The bargaining power of buyers: There are lot of Buyers in

market for Walton brand and as well as more similar brands
are available in market. Buyers have more choices, more price
sensitive, availability of substitute products, that’s why the
bargaining power of buyers are high.
3. The bargaining power of suppliers: The degree of
differentiation of inputs, presence of substitute inputs, supplier
concentration to firm concentration ratio, cost of inputs
relative to selling price of the product, importance of volume to
supplier, existing laws and regulations to protect local
suppliers. Others suppliers are in market to serve others brand
as well, that’s why the bargaining power of suppliers here
medium.
4. The threat of new entrants: There has medium the threat
of new entrants. Bangladesh Govt rules and regulation,
international brand easily come and take the market share,
people are more concern about trust and reliability that’s why
the threat of new entrants here medium to high.
5. The threat of substitute products: The buyer propensity to
substitute, relative price performance of substitutes, buyer
switching costs, have level of differentiation products on
different brands, that’s why the threat of substitute products
are high.