KFC and McDonalds in China

The KSF to enter China Market – Localization Example: KFC vs. McDonald in China KFC is out-performing compared with McDonald in China. KFC McDonald Time to China market 1987 1990 Number of stores (by 2012) Over 4000 1400 Expansion plan 500 stores per year 1000 stores in 3 years Number of Years reach 1000 stores 17 years 19 years Number of Employees (by 2012) Over 300,000 Over 80,000 Percentage of stores 24 hr services 80% 33% Ranking In USA 7th 1st Ranking In China 1st 2nd

KFC’s Local Strategies in China

KFC entered China market only 3 years earlier then McDonald, the world leading fast food restaurant. However, KFC is out-performing compared with McDonald in China because KFC uses local strategies but McDonald prefers global strategies. KFC use local strategies on three main part: staff, menu and supply chain KFC recruit staffs who understand the market. Since Taiwanese has same language, culture and similar food preference, KFC transferred experienced Taiwanese managers to China in the initial stage to import the experiences from Taiwan. They built up the system to fit Chinese market. Then they also recruited and trained local staffs, who were born and grew up in China. And they prefer staff with studying and working experiences in US. KFC localized taste and menu. They studied consumer behavior and understood that chicken is more preferable than beef. And they adjusted the sauces according to the taste preference. Besides adjusting the old menu, they created particular local menu, which you can not find them in other countries, for instance, Porridge, Clay Oven Rolls(Shobing), Chinese Fritter, and Rice, etc. KFC developed local supply chain to insure the quality and quantity of materials. They invited the long term Taiwanese partners to enter China market together, for example Dar-Cheng Company who provide chicken to KFC in Taiwan. And they searched and qualify local suppliers to ensure the quantity of supply. They standardize purchasing procedure.