Kfc China

In: Business and Management

Submitted By dhruv123
Words 1895
Pages 8
Introduction
Yum! is one of the world’s leading fast food service provider. KFC, which is one of its subsidiaries, not only specializes in fried chicken but is also the leading brand for it. KFC China, since its inception, has been growing at a very fast pace. It has taken astute strategic steps to establish itself in China. It had various key competitive advantages which permitted it to expand to more than 4000 outlets in China (Bell and Shelman, 2011). The company hired a managerial team from Taiwan which had an experience of more than 15 years in the fast food industry (Cho, 2009). It introduced a new concept of high-end, modern and western fast food in China. People considered KFC to be a nice place where they could take their dates. The Chinese love fried chicken, which is probably one of key reasons it has a competitive advantage over the beef focused MacDonald’s, with a ratio of 2:1 unprecedented anywhere else in the world (Cho, 2009). It also catered to local tastes by localizing its menu to suit the Chinese and acquired East drawing- a chain which serves local food. KFC china is also known for its frequent product releases. KFC also dealt with China’s dynamic and rapidly changing business environment by establishing its own supply chain and owning most of the chains instead of giving franchisees like it operates in the US. This was mainly to protect itself from the problems it could face by getting off on the wrong foot with the local partners. (Bell and Shelman, 2011)
However, in 2012, KFC china saw its sales fall for the first time and a significant number of people have over online platforms (such as blogs) expressed their apprehension towards the chicken’s food safety and decided not to eat it anymore. There have been various recent trends which could be attributed to the decline in KFC’s sales. The major reason which caused a sudden decline in the…...

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