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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

KFC's Explosive Growth in China

Adam Burlison & David Meigs

yum brands
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.
slide3
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
slide4
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
slide5
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
questions
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?
sources
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