Abstract

The case examines the entry and expansion strategies of the US-based Yum! Brands Inc. (Yum) in China. Yum entered China in the year 1987, when the Chinese economy had started reaping the benefits of liberalization. Being one of the early players in restaurants business, Yum was able to establish itself firmly in the Chinese market. Yum provided Chinese consumers, a new dining experience through clean ambiance and quick service. Its menu in China included the dishes it served in the western countries and also some local dishes. In each of the provinces Yum operated, it served cuisine which was preferred there. Other factors like employing local people in key positions, franchisee relationships and its own distribution and logistics network contributed to the success of Yum in China.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study and analyze the entry and expansion strategies of Yum in China
• Examine how Yum localized its services in China
• Understand Yum's supply chain management practices in China.

Keywords

Yum! Brands Inc., International Business, Chinese Fast Food Market, Customization, Growth Strategies, Brand Building, Joint Ventures, Sourcing, Distribution and Logistics Network, Localization, Entry and Expansion Strategies, Dining Habits in China, McDonald's in China, Franchising in China