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KFC Japan

Initially, KFC Japan's overall strategy was simply to bring its American product to Japan intact, with the same store design, menu and management style (such as it was) as existed in the United States. The Japan country manager had little experience in international operations and hired a Japanese manager from a printing company after six months. The unwillingness of KFC Japan to begin its strategy by examining the market and determining what would (and would not) be acceptable in terms of product at the outset, and the failure to use its joint venture partners in any type of serious senior management capacity, contributed to the poor operating results which the company has seen.

Over time, the overall strategy shifted to one which recognized the unique characteristics of the Japanese market in terms of tastes and consumer buying habits. The traditional American store layout was abandoned in favor of smaller locations which could be located in areas of heavy traffic, and the menu was expanded to include items which had more traditional Japanese appeal. At the same time, KFC Japan shifted its focus from merely fast food to a "fashion" focus and marketed the American aspect of the product to young Japanese whom KFC Japan determined to be particularly "taken" with American goods and appearances.

KFC Japan was formed as a joint venture between KFC and Mitsubishi, but KFC Japan never took full advantage of its Japanese partner's, which had a strong presence in poultry and which probably could have made significant contributions to the venture's success. Mitsubishi provided funds for the endeavor, and seemed content with the operation (never requiring increases in profit margins, for example), but the chief Japanese manager was from outside not only Mitsubishi, but from the food business in general. In a country where business relationships are based on long-term personal relationships and corporate alliances, this must be consid...

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KFC Japan. (1969, December 31). In LotsofEssays.com. Retrieved 15:58, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1688875.html