KFC - a Why did they come to China KFCs global strategy is...

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a. Why did they come to China?” KFC’s global strategy is well developed. Before the year 2000, KFC’s international strategy was to make their company global and franchise restaurants all around the world. However, after 2000, the international strategy changed. KFC changed their focus to several high- growth markets including Canada, Australia, the United Kingdom, China, Korea, Thailand, Puerto Rico and Mexico. They planned to build company-owned restaurants in these markets so that KFC could better control the product quality, service and restaurant cleanliness. Besides, in other international markets like some smaller countries that cannot support a large amount of restaurants, KFC planned to grow through franchises and let those who better understood the local market run the restaurants. There were other potential emerging markets in Europe and Latin America. Different from the markets like China, Europe and Mexico have similar languages and cultures to United States, and are closer in proximity. Even though there is much competition in these two parts, KFC wants to expand its company- owned restaurants there. (Krug) The decision to come to China was first put forward in an assembly of KFC’s local leadership team made up of US-educated ethnic Chinese drawn from Taiwan and other parts of Asia. They talked about a local leadership team which had the knowledge of best industry practices outside China and the understood the local context inside China. The word “localization” was officially raised and making people, products, functions, management systems, policies and processes was the key to success in China. ("world is flat--how KFC went global") China is a country with large market potential: 1.3 billion people or 20% of the world’s total population. Also, China is complex and highly dynamic. ("world is flat--how KFC went global") Since the reform and opening-up policy implemented in 1978, China has been undergoing dramatic economic growth. Many transnational corporations have come to China. A simple diet cannot satisfy customers’ requirements. People want to enjoy an international life style. On November 12 th , 1987 China’s first KFC restaurant opened. Chinese consumers showed great enthusiasm for KFC. It is said that for weeks, long queues formed every day outside the restaurant. “It was as if decades of hidden curiosity and conflicting emotions toward the West had been unleashed all at once.” Former YUM Brands executive Warren Liu said. ("world is flat--how KFC went global") However, China is also a country with a tremendous history and rich culture. Western companies wanting to enter the Chinese market must consider localization more especially when selling food products. Not only do they need to change the food to fit Chinese people’s taste, but also have to consider the problem of service, business practices, and even management systems. KFC has the right attitude to adapt to these differences and become a much loved brand in China. ("world is flat--how KFC went global") With a clear strategy to enter and successfully implement this strategy, KFC was perfect from beginning to end.
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