BCG Matrix of KFC
BCG Matrix of KFC
KFC's parent company is Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 37,000 locations in more than 120 countries and territories and employing more than one million associates. Yum! is ranked number 239 on the Fortune 500 List, with revenues exceeding $11 billion in 2008. Therefore, KFC is well-known in the world; the market growth of KFC is low which mean the market would hard to grow anymore.
KFC is in the ‘Cash Cows’ area. Cash Cows is where company has high market share. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a “mature” market, and every corporation would be thrilled to own as many as possible. They are to be “milked” continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Nowadays, KFC still dominates the chicken fast food industry while has stores in more than 100 countries operating vast profits. Although, due to increased conditions of life, and differentiation of the life style of the population around the world, there is still a lots of room for expansion, especially in countries with large population, and high development rate. KFC using the BCG matrix and SWOT analysis to analyze what is the current position of the company and identify that the company has the potentials to growth in fast food market. The BCG Matrix made a significant contribution to strategic management and continues to be an important strategic tool used by companies today. The matrix provides a composite picture of the strategic position of each separate business within a company so that the management can determine the strengths and the needs of all sectors of the firm. The development of the matrix requires the assessment of a business portfolio, which include an organization’s autonomous divisions (activities, or profit centers).
KFC's parent company is Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 37,000 locations in more than 120 countries and territories and employing more than one million associates. Yum! is ranked number 239 on the Fortune 500 List, with revenues exceeding $11 billion in 2008. Therefore, KFC is well-known in the world; the market growth of KFC is low which mean the market would hard to grow anymore.
KFC is in the ‘Cash Cows’ area. Cash Cows is where company has high market share. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a “mature” market, and every corporation would be thrilled to own as many as possible. They are to be “milked” continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Nowadays, KFC still dominates the chicken fast food industry while has stores in more than 100 countries operating vast profits. Although, due to increased conditions of life, and differentiation of the life style of the population around the world, there is still a lots of room for expansion, especially in countries with large population, and high development rate. KFC using the BCG matrix and SWOT analysis to analyze what is the current position of the company and identify that the company has the potentials to growth in fast food market. The BCG Matrix made a significant contribution to strategic management and continues to be an important strategic tool used by companies today. The matrix provides a composite picture of the strategic position of each separate business within a company so that the management can determine the strengths and the needs of all sectors of the firm. The development of the matrix requires the assessment of a business portfolio, which include an organization’s autonomous divisions (activities, or profit centers).