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Case Study Mcdonald's Vs. Kfc

3736 words - 15 pages

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 ...view middle of the document...

One of the big changes in the quick-service industry was the drive-through window. As if people weren’t already lazy enough someone decided to add a window where you can order from your car and receive food from your car. This invention increased the term “fast food” tremendously. People who were in a hurry love these type of restaurants because they can get their meal within 5 minutes and they never have to leave their car. The drive through technology got more advanced over the years and a screen was put in so customers could see the menu and decide what they wanted to order. The problem with this mature industry is that no company can really set itself apart from one another. If a great idea like the drive through happens, than in a month the majority of the other quick-service companies will follow in the same path and create a drive through for their company. Companies in the mature industry begin to focus on other things like refining their current products to fit the needs of the current customer. An example of this would be when people began to eat healthier and want healthier food when they ate out. This health kick that society began to go through did not fare well for the quick-service industry. The food served at these restaurants are not very healthy and can be thought of as greasy and fattening. So these companies began to add healthier foods to their menu and attempt to adapt to the needs of these customers. Many customers added salads to their menu and other various healthier items. Another example was the innovation to add dollar items to your list of menus. These made things very easy for customers because younger, cheaper people could order food from the dollar menu. These changes that the companies tried to make worked for a short period of time but with a mature industry companies tend to a reduction in profitability over time.
Being a customer deciding to get fast food opens you up with a lot of options. Customers choosing to get quick service food for dinner all wanted the same results. They wanted to be able to order their meals as quickly as possible without any problems or implications. They wanted their food delivered to them quickly so they could drive home or eat right away. Going into a quick service restaurant you aren’t always looking for quality as much as getting the food as fast as possible. Many companies had specialty items that grew very popular over the years or gave a company a certain image that they got popular from. McDonalds had the Big Mac, their own style of fries and a have it your way approach that made people happy. Taco Bell was known for being open really late and appealing to people that get hungry when it hits midnight. Their many styles of taco became very popular to people. KFC became known for their big buckets of home style fried chicken and a mashed potato bowl that was full of everything you could ever want. All these companies create a ton of competition in the quick service...

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