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Kfc In China

Is Tony Wang correct in assuming that China is an ideal market for KFC? Should KFC be pursuing the Chinese market at the present time?  

Considering China as a strategic location was based from a SWOT analysis.

Availability of Supply (Strength)
There is ready access of quality poultry in the major metropolitan areas such as Shanghai, Guangzhou and Beijing.
Poultry industry is one of the top priority categories in China’s agriculture modernization and it is highly encourage by the government. Thus, the company can ensure a reliable supply of high quality chicken.

Low Competitive Pressure (Strength)
Potential competitors such as MacDonald’s face major barriers to enter the China market due to poor beef supply while KFC, aside from availability of high quality chicken supply, has the clear advantage since its main product-chicken- is eaten almost everywhere in the world. Furthermore, chicken is already familiar in China and even much cheaper.

Company’s Control Measures (Strength)
KFC s control mechanisms are designed to ensure standard levels of quality, service and cleanliness (QSC) at all of the restaurant’s chain stores. This fits the positive image in Asia of American fast food restaurants as famous, air-conditioned, and hygienic.

Product Consumption (Strength)
Chicken has long been regarded as a kind of nutritious food, which is especially good for the patients, the elders and children. An increase in health conscious consumers also raises the consumption of chicken.
Moreover, chicken is a more popular meal than hamburgers in most Asian countries and KFC has the opportunity to offer an American style experience that is different from most other food establishments.

Drawing Area (Opportunity)
In late 1978, China began implementing economic reforms to modernize its economy by lessening the government’s control of the economy. This reform referred as a socialist market economy boosted the national wealth and the consequent increase in...