Kfc Case Study

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Recommended: Reasons for kfc success in china

4.Culture difference
Until June 2010, KFC has over 3,000 outlets in China, whereas McDonald’s operates 1,100, or only one third as many (Ministryoftofu.com 2011), one of the key reasons behind such difference is the local food cultural differences which is different from the US style fast food and KFC has been adapting their products to the local needs. Kentucky Fried Chicken entered the Chinese from the beginning with the focus on the special nature of the Chinese market; they are caring about the Chinese culture and consumer habits through in-depth research and investigation, recognizing China’s market and Western European and American markets with unique features. KFC continue to meet consumer demand in the Chinese people and added a lot …show more content…

The whole supply chain in China is unsophisticated and aboriginal. Despite of the highest population in the world, its whole food supply chain is still relying on small food processors which are inefficient and lack of technology for mass production. It also reflects there are very few large end users to support the building-up of large food processing plants (Wang 2011). Though the management of McDonald 's China supply logistics has taken a step forward with the entry of The Havi Group, McDonald 's main US distribution manager and Havi has established the wholly foreign-owned Husi Food Co. Ltd. to function as the consolidator and distributor of virtually all of McDonald 's inputs in China, still the full takeover by Havi Group is not yet achieved (Chinaadopttalk.com 2008), as a result the local small and inefficient supply chain will be difficult for McDonald China in managing the supply side. In the case of McDonald’s China, it needs to locate its position is closer to individual customers and nearest supply outlets in order to control the transportation cost, attract as many customers as it can and also reduce the response time to the changing customer demand in term of changes in the volume of production required and the transportation costs incurred(Chinaabout.net

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