KFC Global Strategy

Running Head: KFC GLOBAL STRATEGY
KFC Global Strategy
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KFC GLOBAL STRATEGY 2
KFC Global Strategy
Introduction
The Kentucky Fried Chicken (KFC) is a well-known fast food restaurant that is based
in America, and it is specialization is fried chicken. KFC is operational globally, and more
often than not, it has always taken global markets by storm (Shoyemi, 2014). This is
something that can significantly be attributed to its internalization approach. This approach
entails implementing effective strategies in selecting the international markets, developing an
entry mode in the foreign markets, as well as addressing the various factors that would have
an impact on the business in the foreign markets. This study will, therefore, focus on
discussing how KFC has adapted its business model to reflect the new markets it is entering.
Selection of International Markets
In the selection of international markets, KFC does thorough primary market research
where they obtain data directly from the specific global market combined with secondary
market research (Shoyemi, 2014). The secondary market research is where it collects data
through secondary sources such as market reports as well as the trade statistics of the
particular country (Shoyemi, 2014). This strategy has always enabled KFC to have a vivid
understanding of the market they are entering, and the potential benefits and challenges that it
may face. Additionally, KFC undertakes an analysis of the macro-environmental factors to
analyze the foreign business environment as well as for competitor analysis.
KFC also implements the transnational strategy as its global strategy. This
internationalization approach guides its implementation of a personalized approach to
marketing and selling those products to their target market (Parboteeah & Cullen, 2009). It
has also overseen its worldwide integration and local responsiveness. This approach follows
the fact that the international market needs high levels of local responsiveness (Parboteeah &
Cullen, 2009). Therefore, its global expansion has always considered the political, economic,
socio-cultural, environmental, and legal factors so that they are specific to the country that
they are expanding to.
Entry Mode in the Foreign Market
KFC has always used franchising as its entry mode to the international markets for
decades. This entry mode has played a central role in the business growth of this company in
the global markets. This entry model entails entering an agreement between the two
businesses one being the franchiser and the other being the franchisee (Achola, 2016). KFC
has always preferred the franchising model because it has been helpful in making their
market penetration easier, it has also been beneficial in improving their production, and
increasing their expertise levels (Achola, 2016). Most importantly, using the franchising
model has always provided a cheaper means for KFC to expand to in international markets.
Standardization has been key in the its international expansion strategy.
Standardization means offering the same products but in different markets (Boone & Kurtz,
2015). For example, KFC would offer similar products both in the Asian markets like China
and in the United States. However, KFC has always been careful not to overlook the specific
needs of the local market that they operate in. This means that although it may be offering
similar products through standardization, they also strive to customize other products that
they have so that they meet the specific needs of the market that they operate in (Boone &
Kurtz, 2015).
Factors Influencing the Business
In its internationalization approach, KFC also takes into consideration the various
factors which would influence it as it operates in the foreign markets. These are issues to do
political, economic, environmental, and legal factors. All of these factors would either have a
positive or an adverse effect on the performance of the company, and that is why it would be
essential to consider them (Boone & Kurtz, 2015). The presence of political risks, for
example, is something that would significantly impact the business environment and
consequently affect the investments in that country.
The economic factors may also affect the performance of the business because it may
have an impact on the employment, pricing strategies, and even the sales of the products.
Environmental factors are also becoming an issue of utmost importance because it would
influence its performance in the foreign markets. Most of the countries around the world
continue to put in place environmental laws that companies need to comply with such as
waste disposal laws. The legal environment of a foreign country is also an essential aspect
because different countries have different regulations that the company will have to comply
with. The compliance would affect the business in one way or the other which is why it is an
issue that needs to be considered.
Conclusion
From the findings of this study, KFC selects its international markets through
conducting thorough primary and secondary research as well as through the implementation
of the transnational strategy in its expansion. The franchise model is its primary mode of
entry in international markets where it takes into consideration the standardization process
and the level of implementation of effective cost controls. Some of the factors that KFC
considers and which would influence the business include political, environmental,
economic, and legal factors of a country.
References
Achola, M. A. (2016). Franchising as a Market Entry Strategy by Kentucky Fried Chicken
into Kenya. Unpublished MBA Thesis, University of Nairobi.
Boone, L. E., & Kurtz, D. L. (2015). Contemporary marketing. Australia: South-Western
Parboteeah, K. P., & Cullen, J. B. (2009). International business: strategy and the
multinational company. Routledge.
Shoyemi, A. O. (2014). Consumers' perception of international quick service restaurants in
Nigeria: a case study of Kentucky Fried Chicken (KFC) (Doctoral dissertation, Dublin
Business School).
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Running Head: KFC GLOBAL STRATEGY

KFC Global Strategy

KFC Global Strategy

entails implementing effective strategies in selecting the international markets, developing an

Selection of International Markets

may face. Additionally, KFC undertakes an analysis of the macro-environmental factors to

analyze the foreign business environment as well as for competitor analysis.

internationalization approach guides its implementation of a personalized approach to

they are expanding to.

Entry Mode in the Foreign Market

Standardization has been key in the its international expansion strategy.

Factors Influencing the Business

consequently affect the investments in that country.

issue that needs to be considered.

economic, and legal factors of a country.

Achola, M. A. (2016). Franchising as a Market Entry Strategy by Kentucky Fried Chicken

into Kenya. Unpublished MBA Thesis, University of Nairobi.

Boone, L. E., & Kurtz, D. L. (2015). Contemporary marketing. Australia: South-Western

multinational company. Routledge.

Shoyemi, A. O. (2014). Consumers' perception of international quick service restaurants in

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