Analysis of KFC's Economic Environment

Analysis of KFC's Economic Environment

Economic globalization is the general trend of world development today. Although there will be twists and turns in the process and some people will oppose it, its momentum is unstoppable. Coupled with the rapid development of the information industry, it has broken through the limitations of geographical time and space. Internet has narrowed the distance between countries in the world, accelerated the flow of goods, capital, technology and information, and reduced costs at an unprecedented speed. With many economic factors, KFC, a western-style fast food, entered China and won an unprecedented market in China.

As an enterprise, KFC has many factors that affect its environmental performance, but in the long run, the key to its success lies in whether it can formulate a strategy suitable for its own strength and environmental requirements and implement it effectively. With the acceleration of globalization and integration of the world economy and the intensification of international competition, this feature is becoming more and more obvious. We believe that the success of KFC in China is based on its professional strategic analysis, scientific strategic choice and effective strategic implementation.

Over the past 20 years, China has seized the opportunity of economic globalization and accelerated its reform and opening up, becoming one of the countries that have benefited the most from globalization. Today, more than 400 Fortune 500 companies have invested in China, and more and more multinational companies have set up production bases, procurement centers, R&D centers and regional headquarters in China. 1986 In late September, KFC began to consider how to enter the most populous China market and explore the huge potential contained in this huge market. After years of development, KFC has become a household name, and this western-style fast food has been deeply rooted in people's hearts. This is inseparable from the favorable economic environment in China. Since China's entry into WTO, China's market has been in line with the international market, and KFC has also entered the China market in a better form.

China market is suitable for the development of KFC, and a KFC in Jiaxing International China Port City has been successfully opened. Jiaxing is located in the geometric center of developed cities such as Shanghai, Hangzhou, Suzhou and Ningbo. The development of "Shanghai-Hangzhou high-speed railway" will inevitably make Jiaxing's economy take off. The International China Port City located in the Development Zone will be a new type of "tourism business complex", which will integrate the tourism concept into the commercial shopping center. The project will include outlet shopping center, supermarket, Jiashimao Home Life Plaza, Jin Yue Dynasty State Banquet Center, super five-star hotel, Lido China-Hong Kong Hotel, China-Hong Kong International Convention and Exhibition Center, cultural and creative industrial park, China-Hong Kong Paradise and other large-scale projects, so as to build the first amusement shopping center in China and a 5A-level scenic shopping center. The economy of China port city is developing gradually, and KFC will inevitably lead to new economic trends.

KFC's consumption is bound to become the main consumer of students and residents near China Port City. The price of KFC products is relatively reasonable, which is in line with the consumption level of people nearby. Consumption level is determined by income level. For example, students do not have the ability to make money themselves, but they also have some money. KFC's consumption index meets students' consumption demand.

As a company focusing on food, KFC also meets people's consumption expenditure-taking food as a large part of consumption expenditure. KFC's food is convenient and fast, and its operating mode is deeply loved by people.

In a word, KFC has achieved perfect development in the world and China by grasping the economic environment of the international market and China market. In China port city, we also firmly grasp the development trend, which is bound to have better development.