Analysis of KFC's International Business Operations and Strategies

This report provides an analysis of KFC's international business operations, with a specific focus on its performance in the Indian market. The report begins with a background of KFC, highlighting its position as the second-largest fast-food chain globally and its parent company, Yum! Brands. It then explores KFC's international operations, particularly in Asia, emphasizing the significance of India as a key market with a substantial number of outlets and adapted menus. The evaluation section discusses the rationale behind KFC's international business, the company's market share in India, and its overall performance, highlighting the company's strategic adaptations to the Indian market, including menu adjustments, pricing strategies, and location choices. The report concludes by summarizing the factors contributing to KFC's success in the culturally diverse Indian market, emphasizing the importance of strategic alignment with consumer preferences and market conditions.

Running head: INTERNATIONAL BUSINESS OF KFC
INTERNATIONAL BUSINESS OF KFC
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INTERNATIONAL BUSINESS OF KFC
Company Background of KFC:
The American fast food company Kentucky Fried Chicken is known as KFC and it is the
second largest fast food chain in the world. The home country of the company is America and
the headquarter of the company is in Louisville, Kentucky. KFC is the subsidiary of the Yum!
Brands (KFC, 2017). Though the company offers various kinds of fast foods, the basic offering
of the company is based on chicken.
International Operations:
The key foreign market of KFC is Asia. The business operation of the company is
widespread in Asia. Among the 123 countries within which the company is operating, India is
one of the biggest markets of the company. The company has 350 outlets in India and the
business of KFC was refranchised in 2015 (Mishraand & Dwivedi, 2013). Among all the outlets,
one third is operated by franchisees, later were sold to Sapphire Foods India Pvt. Ltd. The first
outlet of the company was in Bangalore and the company started expanding its business outside
Bangalore in and from the year 2004 (Gera, 2012). The company also has updated menu
according to the demand and taste of the Indian people. There are different meals and combos for
the customers. On the other hand, the offerings of the company to its home country are different.
However, the outlets of the company in America are also owned by the franchisees or the by the
company (KFC, 2017). In India, the brand of the company is as much known as it is in its home
country. The KFC is itself a brand to the consumers of India, whereas in United States the
company operates under its parent company.

INTERNATIONAL BUSINESS OF KFC
Evaluation of the International Business:
Rationale:
Considering the fact of the international business of KFC, it is operating within a larger
market of fast food. The final product is reached to the consumers by the retailers. The company
depends on the local wholesaler for the raw materials of the products. The supply chain of the
company is based on local market of the host country.
Company Performance:
The market share of KFC in India is approximately 12% (Rajput, Kesharwani & Khanna,
2012). The performance of the company in the Indian markets it strong and stable. India being
the culturally diverse country produces number of consumers of the products. Within a very
short span of time, the company has gained competitive advantages as well as earned reputation
in the market of India.
Success Factors:
The company has been successfully running its business in the fast food market of India
because of the strategic performance of the company in terms of business operations. The
company has set its strategies according to the demand, taste and capabilities of the consumers
existing in India. The strategies like extensive menu, reasonable price, location, attractive offers
and many others are the factors that are influencing the success of the company in the Indian
market (Mishraand & Dwivedi, 2013). In addition, the culturally diverse society of India is also
the influencing force behind the success of the company in the said market.

INTERNATIONAL BUSINESS OF KFC
Reference:
Gera, N. (2012). Customer Perception for the Fast Food Destination of Indian Youth-KFC: An
Exploratory Research. Al-Barkaat Journal of Finance & Management, 4(2), 93-99.
KFC. (2017). KFC: Finger Lickin’ Good. KFC®: Finger Lickin’ Good®. Retrieved 11
November 2017, from https://www.kfc.com/
Mishraand, B., & Dwivedi, S. (2013). SUCCESS STORY OF Mc. D IN INDIA: STORY OF
IT’S STRUGGLE IN INDIAN MARKET. Asian Journal of Science and
Technology, 4(07), 066-070.
Rajput, N., Kesharwani, S., & Khanna, A. (2012). Dynamics of female buying behaviour: a
study of branded apparels in India. International Journal of Marketing Studies, 4(4), 121.