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Localization and Standardization---a Case Study of KFC and McDonald’s in China
Abstract
Standardization and localization are two different operating methods. When multinational corporations enter into a new emerging market, they will inevitably face the question that whether to be standardized or localized. McDonald 's and KFC in China have made remarkable achievements, however, strangely enough, KFC, the second name forever in the global fast-food market, beats the big brother McDonald 's in China. This paper aims to find out the answer to the two problems. First, why can McDonald 's and KFC in China be as successful as in other countries? Second, why does KFC beat McDonald 's in China? This thesis selects the well-known McDonald 's and KFC as a case study. Though consulting a large number of documents reference, analyzing the current development situation of the two giants in fast food market and contrasting the similarities and differences in China, this paper is done. Part one is a brief introduction to McDonald 's and KFC and their marketing methods---- standardization and localization. This covers the history of the two giants, the current operating situation and the definition of that two marketing approaches. Part two answers the first question by analyzing how standardization ensures the two companies’ success in details. The third part answers the second question by evaluating how localization helps KFC beat McDonald’s in China. This paper fully shows the Results: the fundamental reason why the two favored foreign fast food restaurants can continue to their success in China is their persistence in standardization. Nevertheless, excessive pursuit of McDonald 's towards standardization results in its step-by-step management mode. And this management mode was beaten by continuing localization management of KFC in China. There is not a single Chinese restaurant that can compete with McDonald 's or KFC in their influence on people’s
Abstract
Standardization and localization are two different operating methods. When multinational corporations enter into a new emerging market, they will inevitably face the question that whether to be standardized or localized. McDonald 's and KFC in China have made remarkable achievements, however, strangely enough, KFC, the second name forever in the global fast-food market, beats the big brother McDonald 's in China. This paper aims to find out the answer to the two problems. First, why can McDonald 's and KFC in China be as successful as in other countries? Second, why does KFC beat McDonald 's in China? This thesis selects the well-known McDonald 's and KFC as a case study. Though consulting a large number of documents reference, analyzing the current development situation of the two giants in fast food market and contrasting the similarities and differences in China, this paper is done. Part one is a brief introduction to McDonald 's and KFC and their marketing methods---- standardization and localization. This covers the history of the two giants, the current operating situation and the definition of that two marketing approaches. Part two answers the first question by analyzing how standardization ensures the two companies’ success in details. The third part answers the second question by evaluating how localization helps KFC beat McDonald’s in China. This paper fully shows the Results: the fundamental reason why the two favored foreign fast food restaurants can continue to their success in China is their persistence in standardization. Nevertheless, excessive pursuit of McDonald 's towards standardization results in its step-by-step management mode. And this management mode was beaten by continuing localization management of KFC in China. There is not a single Chinese restaurant that can compete with McDonald 's or KFC in their influence on people’s
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