Kentucky Fried Chicken's Radical Approach to China.

608 Words3 Pages
Introduction This is an article review paper discussing Kentucky Fried Chicken's Radical Approach to China. It gives a brief description of the strategies employed during the establishment, expansion and ultimately the growth of the KFC in china. It highlights the approaches employed and their advantages. This article review also discusses some of the challenges experienced and how they were dealt with. Discussion KFC’s radical approach to China was a well-timed and wise decision. Its success can be attributed to five competitive strategies. They were: infusion of a western brand with Chinese characteristics, rapid expansion, development of a logistics network, training their own employees and focusing on ownership rather than franchising. The decision to infuse a Western brand with Chinese characteristics was an important strategy. It portrayed a powerful image which the local population could identify with. It appealed to the locals not as a fast-food chain selling inexpensive Western-style items but as restaurants offering the variety of foods and the traditional dishes. This attracted the Chinese customers. The strategy of rapid expansion was strategic as they could now compete with the other restaurants that were already established in the Chinese market. Their decision to embrace smaller cities during their expansion to a national business with outlets all over the country was advantageous. It helped to scale company, therefore, cutting costs. Being first to enter is a strategic business decision as it means you get to pick locations with good foot traffic and visibility. There is also free publicity during the opening and launching of an outlet. Developing a good and reliable logistics network means that distribution networks work to near perfection. It also ensures proper handling of food. This they achieved through building warehouses and running their
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