Kfc Wins in China
- Submitted by: chobits
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- Category: Politics: Economics
- Date Submitted: 02/20/2011 05:59 AM
- Pages: 10
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KFC wins in China
Introduction
The Kentucky Fried Chicken was founded by Colonel Harland Sanders (born on September 9,1890) at the age of sixty-five. KFC is a fast food restaurant which specializes in fried chicken, and KFC relied on this advantage to occupy the Chinese market. By 2001, there were more than 500 KFC outlets all over China, so many that its stores couldn't get enough imported potatoes for mashing. In 2002, as China's middle class swelled and acquired more cars, KFC opened China's first drive-through restaurant. In 2004, the 1,000th store opened, and portraits of Colonel Sanders were displayed in all stores -- where he was quickly mistaken for Uncle Sam. By 2008, KFC had twice as many outlets in China as McDonald's, a reversal of the ratio in other parts of the world.
Obviously, KFC’s success can be seen all around China, and even if its original rival, McDonald's has no choice but acknowledging the facts. There are many reasons for KFC’s success analysis from two parts, one is company’s external, the other is company’s internal by analysis methods, which are PEST, Five Forces and SWOT to help its analysis.
KFC first entered China in Hong Kong, China in 1973; it quickly grew to 11 restaurants in the following year. But it misjudged the local market and failed to develop a suitable business model. By 1975, all 11 restaurants were forced to close their shutters
Macro Environment
Ten years later, KFC entered Chinese market again. At this time, KFC made an adequate preparation that PEST analysis for entering.
Political Environment
Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided...
Introduction
The Kentucky Fried Chicken was founded by Colonel Harland Sanders (born on September 9,1890) at the age of sixty-five. KFC is a fast food restaurant which specializes in fried chicken, and KFC relied on this advantage to occupy the Chinese market. By 2001, there were more than 500 KFC outlets all over China, so many that its stores couldn't get enough imported potatoes for mashing. In 2002, as China's middle class swelled and acquired more cars, KFC opened China's first drive-through restaurant. In 2004, the 1,000th store opened, and portraits of Colonel Sanders were displayed in all stores -- where he was quickly mistaken for Uncle Sam. By 2008, KFC had twice as many outlets in China as McDonald's, a reversal of the ratio in other parts of the world.
Obviously, KFC’s success can be seen all around China, and even if its original rival, McDonald's has no choice but acknowledging the facts. There are many reasons for KFC’s success analysis from two parts, one is company’s external, the other is company’s internal by analysis methods, which are PEST, Five Forces and SWOT to help its analysis.
KFC first entered China in Hong Kong, China in 1973; it quickly grew to 11 restaurants in the following year. But it misjudged the local market and failed to develop a suitable business model. By 1975, all 11 restaurants were forced to close their shutters
Macro Environment
Ten years later, KFC entered Chinese market again. At this time, KFC made an adequate preparation that PEST analysis for entering.
Political Environment
Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided...