The need for strategy, in order to expand its existing product in very promising markets for
KFC is very essential. KFC, along with McDonalds, and other major fast food chains have
dominated the American continent as well as else where. Since the 1950s when the founder
of KFC had a dream, of building an empire in the fast food market, the company has
undergone lots of changes. The company has changed ownership, it has taken over from
Pepsi and passed over to Tricon, which owns Pizza hut, Taco bell and others. Nowadays,
KFC, still dominates the chicken fast food industry while has stores in more than 100
countries operating vast profits. (De Witt et al.2004a) 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. One of the most significant locations for expansion is considered
the Latin American countries, which the geographical proximity to U.S.A., along with their
development rate, and amount of population seem to be very attractive for many
companies. ( Washington Times, The (DC), Aug 09, 2005Item: 4KB20050809110639 a)
Countries like Mexico, Brazil, and Argentina have a sum of 3 hundred million population,
amount equal to the United States. Such resources, regarding population and natural
benefits couldnt miss the attention of any company, while the demographics shown very
suitable conditions for development. ( Chesterton Blumenauer (Binswager)by Steve
Bergsman )
Those countries after difficult times, struggling to establish an economic and governmental
stability, seem to find their way and create favourable conditions for progress.
( Washington Times, The (DC b), Aug 09, 2005Item: 4KB20050809110639) So far KFC,
is well established in Mexico, but doesnt do so well in the rest of the countries coming
third in total restaurants in Latin America. (De Witt et al 2004 b) KFC Company has to
make the analogous research in the markets of these countries, in order to identify the most
suitable ones, to establish its brand among the biggest fast food chains.
Using the B.C.G. matrix and S.W.O.T. analysis we will try to analyse what is the current
position of the company and identify the potentials that the company has in the market.
B.C.G. is a tool that analyse the position of the business in the market at some moment in
time, and reveals the potential market share and market growth that the company holds.
