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McDonald’s
versus

KFC
By: Mohammadreza Fallah, Yawei He,
Kanat Kairatov, Archie Nelson
History

KFC(Kentucky Fried Chicken):
• Founded in 1930
• By Colonel Harland Sanders in Kentucky
• Franchises restuarant
• A brand of Yum! Brands (original PepsiCo)
History
McDonald’s:
• Founded in 1940
• By Dick and Mac
MacDonald in California
• Target market is children
and young people
Worldwide Market Share in the
fast food industry
2%
19%

Mc
Do
n
9% KFC

9%
1%
1%
2%

ald
’

s
57%

O her s
t
Bur ger Ki ng
C SI
O
Paner a Br ead
Subw
ay
KFC
M onal d' s
cD
W
endy' s
Comparison
How many countries they entered into?
140
120

120
90

100
80
60
40
20
0
KFC

M
cDonal d' s
Comparison
Restaurant numbers worldwide
35000

31,000

30000
25000
20000
15000
10000

11,000

5000
0
KFC

M
cDonal d' s
Comparison
Company’s market value
45
40
35

$40.6bn

30
25
20
15

系列1

$11.2bn

10
5
0
KFC(Yum )
!

M
cDonal d' s
Internal

evti s op
i

Weakness

Opportunities

Threats

negative

Strengths

external
SWOT Analysis
Common Strengths:
• Fast
• Good location
• Good services
• Good environment
• Globalization
• Brand
SWOT Analysis
• Strengths of McDonald’s :
• Higher income and more capital

McDonald’s

Yum!
(KFC, Pizza Hut
and Taco Bell)
SWOT Analysis
• High-quality raw material (SQI)
• Standard products
• Welcomed by children
SWOT Analysis
Strengths of KFC:
• Localization
• Various products
• Large products portfolio & long product
life cycle
• Larger target market 6-65
SWOT Analysis
Weaknesses
KFC
Unhealthy

McDonald’s
Unhealthy

Poor food quality

Changeless on menu
worldwide

Lack of focus on R&D
(research & development)

Product failure

Slow speed of growth

Taste of food is not good
The taste of hamburgers
SWOT Analysis
Opportunities:
• International markets:
Developing countries
• Small middle size cities
• Order online or by telephone
• New products
• Business alliance
SWOT Analysis
Key Threats : Competition
• Restaurants are increasingly advertising low
cost burgers on their menus …If you're not in a
hurry, which one would you choose? (for
example The Wilmslow Arms opposite my
university halls offers a great burger for five
pounds)
• Burger King is increasingly competing with both
McDonald's and KFC with a market share of 9%.
SWOT Analysis
Key Threats: Change of consumers’ lifestyle:
• Social changes - Government, consumer groups
encouraging balanced meals, 5 a day fruit and
vegetables
• Health professionals and consumer activists accuse
McDonald's of contributing to the country’s health issue
of high cholesterol, heart attacks, diabetes, and obesity
• The film “Super-size Me” highlighted the dangers that
excessive fast food consumption can have on a persons
health
Solutions
For McDonald’s:
Improve the taste of food
Enlarge the narrow product portfolio
Increase target market
For KFC:
Improve the quality of food
Increase the restaurant numbers
Reference
•
•
•

•

•

•

•

KFC (2012) History [Online]< http://www.kfc.co.uk/about-kfc/kfc-history >, [Date accessed
25/04/2012]
McDonald’s (2012) History[Online]
<http://www.mcdonalds.co.uk/ukhome/Aboutus/Development.html >, [Date accessed 25/04/2012]
Markets.ft (2012) markets data of McDonald’s [Online] <
http://markets.ft.com/Research/Markets/Tearsheets/Financials?s=MCD:NYQ >, [Date accessed
27/04/2012]
Markets.ft (2012) markets data of KFC [Online] <
http://markets.ft.com/Research/Markets/Tearsheets/Financials?s=YUM:NYQ >, [Date accessed
27/04/2012]
Yahoo (2012) Consumers reports of burgers [Online] <
http://shopping.yahoo.com/articles/yshoppingarticles/428/best-burgers/ >, [Date accessed
27/04/2012]
Newscn (2005) KFC dressing contains “”Tonyred 1 [Online] <
http://newscn.biz/Export/News6482.pdf >, [Date accessed 25/04/2012]
MSN (2012) McDonald's meets expectations as profit jumps [Online] <
http://www.msnbc.msn.com/id/47114485/ns/business-us_business/ >, [Date accessed
25/04/2012]
McDonalds vs KFC

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