KFC's International Business Strategy in China

Blake FelsonEric LeDucTeo Tertel Soe Hlaing

IBUS 815: International BusinessJuly 8, 2010

in China

Current Strategies

• Multidomestic Strategy–Menu Differentiation & Upscale Experience

• Superior Internal Distribution System– Economies of Scale and Quality Control

• Target Youth Market• Extensive Employee Training

1930 1952 1964 1973 19871975

SWOT/PEST• Strengths –Market Leadership,

Distribution, & Localization

• Weaknesses− Scale of Operations

•Threats−Health Trends−Political:

Legislative & Policy

• Opportunities− Econ: Growth & Expansion− Social: CSR/Health

Critical Concerns

• Political Uncertainty

• Growing Big and Staying Small

• Market in Transition

• Maintain Dominance

Recommendations

• Multi Branding

• Proactive Lobbying

• Supplier Network Organizations

• Protect Brand Identity

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Steps

Short Term

• Locations• Multi-branding• Copycats• Labor Unions• Healthier Image• Sponsorships

Long Term

• Rapid Expansion• Supply Hubs• Schools• QC• Lobbying• Leadership

Questions?