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Case Study Mcdonald's vs. Kfc

In: Business and Management

Submitted By tcharbo
Words 3692
Pages 15
Case Study McDonald’s and KFC: Recipes for success in China
COUNTRY LEVEL
With the largest population in the world, the emerging economy of China was an easy target for companies to begin their international growth. The opportunity to make money in this country is what excites companies to try and integrate their businesses into the area. China is currently a part of the BRICS association making it one of the five major emerging economies in the world. China is located in Southeast Asia along the coastline of the Pacific Ocean. It sits as the fourth largest country in the world and is currently the second largest economy in the world measured by the Purchasing Power Parity Scale. This scale shows that a product in two different countries should have the same price when expressed at the same currency. With China’s size and increasing economy they have really worked to open their economy to international trade. This opens up the market for companies to try and enter and become successful. (Economy, 2010). Companies like KFC and McDonalds saw they opportunity and began to enter the Chinese market. These bolds moves paid off for some and not so much for others. Throughout the analysis we will see who the real winner is and what the future holds for these industries.
QUICK-SERVICE INDUSTRY
Both KFC and McDonalds are part of the quick-service industry. Many people know this industry as fast food but this is the correct name for it. This industry has been around for years and is currently a mature industry. That means that the means of the industry is understood by everyone and there is no new technology entering the industry. The rate of innovation in new products and technology is low meaning that you have to set yourself apart other ways. Over the years these companies have done many things to try and differentiate themselves but whatever they do can only last for...

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