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KFC's Explosive Growth in China

KFC's Explosive Growth in China. Adam Burlison & David Meigs. Yum! Brands. 40% market share of fast-food chains, McDonalds‘ 16% 2011 in China 500 Pizza Huts in 120 cities 3,000 KFC in 650 cities  2012 in China 630 Pizza Huts in 120 3,700 KFC in 700 cities

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KFC's Explosive Growth in China

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  1. KFC's Explosive Growth in China Adam Burlison & David Meigs

  2. Yum! Brands • 40% market share of fast-food chains, McDonalds‘ 16% • 2011 in China • 500 Pizza Huts in 120 cities • 3,000 KFC in 650 cities •  2012 in China • 630 Pizza Huts in 120 • 3,700 KFC in 700 cities • Leading retail developer in China with nearly 4,500 restaurants in more than 700 cities.

  3. KFC • KFC first opened in Beijing, Chinain 1987 • KFC was owned by PepsiCo while entering China • PepsiCo allowed China KFC Division Chairman and CEO Sam Su managerial freedom

  4. KFC • CEO Sam Su’s success: • Understood they were an American business model operating in China • Cultures are different than one another • Chinese are far less individualistic • Intended KFC to be part of the local community • KFC China procures most its products from within China • Altered menu selection in various regions due to specific tastes

  5. KFC • CEO Sam Su’s success: (cont.) • Value trained labor and loyalty • Friendly employer/employee relationship • Encourage college educations for employees • Handling health concerns • Created healthier menu • Support exercise and youth events

  6. Questions? • Why do you think KFC is out-competing McDonalds in China? • If you were attempting to enter the Chinese market, what lessons from Sam Su would you adopt or do differently?

  7. Sources • http://hbswk.hbs.edu/item/6704.html • http://www.bloomberg.com/news/2011-01-26/mcdonald-s-no-match-for-kfc-in-china-where-colonel-sanders-rules-fast-food.htm • http://www.yum.com/brands/china.asp

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