Local partners are a common strategy for Multi-national brands when entering a new market. In the process of localization, KFC will encounter challenges like additional costs brought by further localization, costly and unstable labor force, and prevalent concept of healthy diet.
The fast-food giant has been upgrading the menu with Chinese-styled breakfast like soya milk and fried dough sticks since it started to serve Chinese customers with breakfast in Wang However, the weakness can be endured when considering the long-term revenue.
Nevertheless, it demands not only fund but also human resources. Therefore, to ensure long term success for KFC in the future, KFC should adhere to the company-owned outlets strategy and enforce further localization.
The parent generation grew up with Cultural Revolution The exhausted demographic dividend will trigger a shortage of million workers in China in the near future Evans-Pritchart To resolve another problem, I recommend that KFC carry out further localization. However, such degree of localization still has a long way to go.
The localization on the general level is far from perfect and there is potential market unexplored. Thorough understanding of local culture is demonstrated via their advertisements. To ensure their children live a better life, they go to lengths to provide for their children.
Good price, great conversation monitor. The Second Challenge The second challenge comes from labor force. Overall, the prospect of successful further localization overweighs the risk. May 1, at 9: A year-long project beginning in annually offers 5, renminbi US dollars for each poor student, who can apply for the aid year by year from the first term until graduation.
These years, Chinese are aware of the importance of a balanced diet Atsmon, Y. Although risk still exists, the benefit of exploring the potential market is attractive enough for KFC to take the risk. Reference List Atsmon, Y. The regional characteristics are not presented in the menu and the service.
New products have to be developed, resulting in the accompanying new advertisement. KFC has built up its public image by sponsoring education. Get started for free and search your brand below: Keyhole definitely frees up time from manual monitoring and has contributed to the growth of our social footprint.
Though different in nationality, they share a common language, parts of history with huge overlaps in culture. The entrenched stereotype that fast-food is deemed as junk food has jeopardized the reputation of KFC.
As the supply of labor shrinks, the equilibrium condition will alter. Franchising in China during their entry period would have placed them in a vulnerable position towards exposing their business intelligence and know-hows as legal protection of IP was very loose back in the days.
KFC went a step further and created a local team internally. It is necessary to discuss the key challenges KFC will meet in the future. Additional costs then arise and managers have to do trade-off between the costs and the benefits.
KFC outlets from different regions can update their menu with regional characteristics. Yet, the risk is high. A southerner may prefer light food, while residents from northern part of China get used to salty dishes.Free Essay: Case Study 1 Introduction Since KFC opened the first outlet in Beijing inthe fast-food giant has occupied its dominant position in.
This case KFC in China focus on KFC is able to please the Chinese palate with its 'finger licking good' chicken that is part of the well-established dietary habits of the Chinese. The Chinese, who until thes, were used to untidy restaurants and unfriendly service, have embraced the ambience, rich decors and friendly service of KFC.
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Uploaded by. Structural Analysis KFC/5(6). Case Study - Kfc China Strategies Words | 6 Pages. Case Study 1 Introduction Since KFC opened the first outlet in Beijing inthe fast-food giant has occupied its dominant position in China(Bell and Shelman ).
CASE STUDY: KFC in China Kentucky Fried Chicken (KFC)- one of the most known fast food chains in the world started in the early 's by Kernel Sanders in the Southern USA as a small franchise operation. KFC lost part of its market share in the recent years in China, but their success in the Chinese market is legendary.
KFC entered the Chinese market inand it’s now the largest restaurant chain in the country, with a total of 4, restaurants. KFC controls as much as 40 percent of the Chinese Continue reading Emerging Market Penetration .Download