Kfc in China

A company like KFC that has conquered the US market had to change it’s own methodology and strategy in order to successfully conquer the giant market of China. KFC China’s executives understood that food is at the very heart of society, inextricable from national and regional cultures, and that an abundance of flavors and an inviting ambiance would be necessary to win consumers.

Getting in a completely different culture is not an easy job. However, to be one the leading fast food companies, KFC’s approaches can be synthesized in five crucial competitive advantages:

1. Infusing a Western brand with Chinese characteristics: KFC China’s managers sought to stretch the brand so that consumers would see KFC as part of the local community. They enlarge the outlet for bigger kitchen and welcome extended families or groups. The menu has more variety, around 50 items. The level of spiciness varies among regions.

2. Expanding rapidly: KFC decided to embrace small cities and to build a national business with outlets all over the country. They rushed to establish a presence in 16 locations from which it could grow and develop.

3. Developing a logistics network: KFC China established a distribution arm building warehouses and running its own fleet of trucks. They also implemented a supplier rating system that allows managers throughout China to concentrate purchasing with the suppliers that perform best. They closely monitors the entire supply chain, all the way back to animal feed companies and other input providers, and it trains employees in personal hygiene, including how to dress for the workplace and how often to wash their hands.

4. Training employees in service: KFC prides itself on being a “learning organization.” Teams of new employees work side by side with experienced ones in established outlets; once trained, they move to a new location.

5. Focusing on ownership rather than franchising: switch to a strategy of company-owned outlets allows the company to...