After the fast-food industry was thriving in Asia and especially in China in recent years, Latin America is considered the future growth market for American restaurant franchises (cf. Bloomberg 2012). In China, KFC already encountered a stunning demand, dominating the market by far before McDonalds (cf. Mellor 2011). However, in 2012 KFC was represented by only 577 restaurants in 36 countries of the Caribbean and Latin American area (cf. CARIBLA 2012). As a consequence one can see that there is still a lot of internationalization potential for the Company in the future.
In order to be able to discuss KFC’s operations in the global market place, this paper will first give an overview of common strategic marketing concepts and management theories, before critically analyzing KFC’s international strategic approach to the global market place. Moreover, it will take a look at how -and if- KFC is able to manage the tension between globalization and localization, giving recommendations for the future development of the firm. In doing so, a critical evaluation of the Company’s pursued internationalization strategy in the past as well as the illustration of possible market entry strategies for KFC is required.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. International Strategic Approach
- 2.1 Managing the Multinational Enterprise
- 2.1.1 The EPG Model
- 2.1.2 Thinking Globally, Acting Locally?
- 2.1.3 Standardization vs. Adaptation
- 2.2 KFC's Internationalization Process
- 2.2.1 Stages of Internationalization
- 2.2.2 Entry Modes - Franchising vs. Internal Growth
- 2.1 Managing the Multinational Enterprise
- 3. Outlook
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze Kentucky Fried Chicken's (KFC) international strategic approach to the global market. It will examine common strategic marketing concepts and management theories, critically evaluating KFC's past internationalization strategy and exploring potential future market entry strategies. The paper will also assess KFC's ability to manage the tension between globalization and localization, offering recommendations for future development.
- KFC's internationalization strategy
- The balance between globalization and localization in KFC's approach
- Analysis of relevant marketing and management theories
- Evaluation of different market entry strategies for KFC
- Recommendations for KFC's future international growth
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This introductory chapter provides the historical context of KFC's founding and initial growth within the United States, highlighting its transformation from a small roadside restaurant to a globally recognized fast-food chain. It emphasizes KFC's success in franchising and its current standing as a leading fast-food brand, second only to McDonald's. The introduction also positions Latin America as a significant potential market for future growth, setting the stage for the subsequent analysis of KFC's international strategic approach and its challenges in navigating the global marketplace. The chapter contrasts KFC's success in established markets like China with its relatively limited presence in Latin America, clearly outlining the scope and focus of the paper.
2. International Strategic Approach: This chapter delves into the theoretical frameworks for understanding multinational corporations' (MNCs) international strategies and applies these to KFC's specific case. It examines models like the EPG model to understand the decision-making processes within KFC. The chapter explores the complexities of balancing standardization (maintaining a consistent brand image globally) and adaptation (tailoring the product and marketing to local preferences) in the context of KFC's operations. This involves a detailed look at KFC's internationalization process itself, considering the various stages of expansion and contrasting different market entry modes, such as franchising versus internal growth (e.g., building wholly-owned subsidiaries). The analysis likely weighs the advantages and disadvantages of each, considering factors like market control, investment costs, and risk.
Schlüsselwörter (Keywords)
Kentucky Fried Chicken (KFC), internationalization, globalization, localization, franchising, multinational corporations (MNCs), market entry strategies, strategic marketing, global expansion, fast-food industry, brand management, competitive advantage.
KFC's International Strategic Approach: FAQ
What is the main topic of this document?
This document provides a comprehensive overview of Kentucky Fried Chicken's (KFC) international strategic approach. It analyzes KFC's global expansion strategy, examining its successes and challenges in balancing globalization and localization.
What topics are covered in the document?
The document covers KFC's internationalization process, including its entry modes (franchising vs. internal growth), the balancing act between standardizing its brand globally and adapting to local preferences, and an analysis of relevant marketing and management theories applied to KFC's case. It also includes a historical overview of KFC's growth and its current market position.
What theoretical frameworks are used in the analysis?
The analysis utilizes frameworks like the EPG model to understand KFC's decision-making processes within its multinational operations. It also explores the complexities of standardization versus adaptation in international marketing and management.
What are the key themes explored?
Key themes include KFC's internationalization strategy, the balance between globalization and localization, analysis of relevant marketing and management theories, evaluation of different market entry strategies, and recommendations for future international growth. The document specifically highlights the contrast between KFC's success in some markets (like China) and its less significant presence in others (like Latin America).
What is the structure of the document?
The document is structured with an introduction, a section dedicated to KFC's international strategic approach (including subsections on managing multinational enterprises and KFC's specific internationalization process), and a concluding outlook. It also includes a table of contents, objectives and key themes, chapter summaries, and a list of keywords.
What specific aspects of KFC's international strategy are analyzed?
The analysis delves into the stages of KFC's internationalization, comparing and contrasting different market entry strategies like franchising and internal growth. It assesses the advantages and disadvantages of each approach, considering factors such as market control, investment costs, and risk.
What are the key takeaways or conclusions?
While the specific conclusions are not explicitly stated in the provided preview, the document aims to offer recommendations for KFC's future international growth based on its analysis of past strategies and the challenges of navigating the global marketplace. It emphasizes the importance of understanding the tension between maintaining a consistent global brand image and adapting to local market preferences.
What are the keywords associated with this document?
Keywords include Kentucky Fried Chicken (KFC), internationalization, globalization, localization, franchising, multinational corporations (MNCs), market entry strategies, strategic marketing, global expansion, fast-food industry, brand management, and competitive advantage.
Who is the intended audience for this document?
The intended audience appears to be academics or students interested in international business, strategic marketing, or the fast-food industry. The focus on theoretical frameworks and in-depth analysis suggests a scholarly approach.
Where can I find the full document?
The provided text is a preview only. The location of the full document is not specified.
- Quote paper
- B.A. International Management Nadine Ghanawi (Author), 2012, The Internationalization of KFC, Munich, GRIN Verlag, https://www.grin.com/document/207195
