KFC in China: Secret Recipe for Success [Paperback]

Warren Liu (Author)

Book Description

Publication Date: September 26, 2008 | ISBN-10: 0470823844 | ISBN-13: 978-0470823842 | Edition: 1

Ranked #5 in INSEAD’s Top Ten Knowledge Articles for Q2 2009

This book examines the major contributing factors which catapulted KFC to the top of the Chinese restaurant service industry in less than two decades. It focuses on KFC China's competitive differentiators, and how they jelled in support of a coherent business strategy, and of each other. The successful execution of KFC China's business strategy has since been rewarded with an unlikely industry leadership position in growth, profitability, market share, and brand recognition in the world's fastest growing economy.

Product Details

• Paperback: 200 pages
• Publisher: Wiley; 1 edition (September 26, 2008)
• Language: English
• ISBN-10: 0470823844
• ISBN-13: 978-0470823842
• Product Dimensions: 0.7 x 6.6 x 8.8 inches
• Shipping Weight: 6.4 ounces (View shipping rates and policies)
• Average Customer Review: 4.7 out of 5 stars  See all reviews (11 customer reviews)
• Amazon Best Sellers Rank: #606,077 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

5 of 5 people found the following review helpful

5.0 out of 5 stars An Insightful and Compelling Look at KFC's Huge Success in China. A Must Read for All Business Leaders in China November 20, 2008

By Gary Wang

Format:Paperback

As a former business leader with major MNCs and now an entrepreneur in China for many years, I know KFC has been doing pretty well in this country. However, I had no idea how successful KFC is in China until I have finished reading Warren's book. While China business accounts for 5-10% for most Fortune 500 companies today, Yum! Brands China contributed 21% of the group's global sales and 23% of its earnings in 2007, and the company is still growing fast in this market.

For readers who are not in the restaurant business, don't assume restaurant is an easy business in China. In fact, the opposite is true. In today's China, consumers have just too many choices, it's one of the world's most competitive restaurant markets in terms of variety, prices and choices. So one can't help wondering how KFC can do it. What are the key elements that are accountable for the KFC success?

Warren as a key person behind this business success has insightfully revealed the key learnings from KFC's success in China: from deploying ethic Chinese leaders to developing local managers quickly to support the company's aggressive growth strategy, from seeking operational excellence to building strong relationships with partners and governments, from adopting flexible product and marketing strategies to building a highly efficient supply chain.

Anyone who is running a China business, no matter which industry they are in, can learn something from KFC's success in China by taking an inside look at the company's operations in the country through Warren's eyes.

2 of 2 people found the following review helpful

5.0 out of 5 stars Great lessons for developing China operations October 3, 2009

By R. Sun

Format:Paperback|Amazon Verified Purchase

Warren Liu's book covers KFC's successful development from opening its first store in China to its current dominant position in the Chinese fast food industry. The author details every aspect of KFC's rise from leadership and strategy to supply chain and localization. The contents of the book are wonderful lessons for anyone who wants to establish successful business operations in China.

The author points out that the appropriate leadership was an important factor in KFC's early and current success. A combination of Chinese cultural background and a proximity to Western thought in KFC's Taiwan management team helped KFC to penetrate the Chinese market as a Western franchise. Mr. Liu also points out that one of KFC's strategies was to expand rapidly, even during the Asian Financial Crisis. This expansion strategy both established KFC as the #1 fast food chain by number of outlets in China and as the cost and marketing leader among fast food franchises.

In comparison to KFC's main Western rival in China, KFC outdid MacDonald's in both supply chain structure and localization of image and product. While MacDonald's imported its concept of outsourcing supply chain functions, KFC built its supply chains locally, which turned out to be cheaper and more effective. KFC's products are also more localized to Chinese consumer tastes and preferences, something that MacDonald's struggled to accomplish.

In addition to the above the author also points to KFC's real estate development, training, employee mentoring, operational support, among other factors, coupled with its drive to succeed in China that differentiated KFC from other competitors that have not enjoyed the level of KFC-success in China.

Anyone who's looking to enter or continue to navigate the Chinese market successfully will find the conclusions mentioned in this book helpful. The lessons from KFC are genuine and interesting to learn. Students of this book will appreciate the real-life examples from KFC's early days to today. These examples are practical and laid out systematically. In reading this book, the author makes it is easy and entertaining to see why and how KFC came to dominate the Chinese fast food market.

1 of 1 people found the following review helpful

5.0 out of 5 stars A comprehensive book on why KFC was successful in China April 11, 2010

By Karen S

Format:Paperback

Warren Liu's book, KFC in China, paints a comprehensive picture of Yum! Brand's success in China, starting with the launch of the first KFC in Beijing to his own thoughts on the future of KFC in China. Liu's book balances helping readers understand KFC's business strategies while also giving enough context on consumer trends, the urban transformation of China and the fast food industry.