Summary This paper discusses the two strongest western fast-food brands, KFC and McDonald’s, entry to a Chinese market. KFC is the best known chicken fast-food restaurant chain, and McDonald’s is famous for its hamburgers and French fries. Literature review reviews the existing literature on internationalization. Internationalization is presented as a process that is changing over time. Later on it moves to mention an existing works that discuss the existing co-evolutionary relationship between the internationalization processes, organizational capabilities and resources, and the evolution of the industry within which firm operates. For the industry analysis, industry lifecycle theory is chosen, while it is also suggested that resources and capabilities have their own life cycles and with time lose value or can be renewed. In the case study, Chinese modern fast-food industry emergence and development is shortly discussed, KFC’s and McDonald’s internationalization activities in China are presented. After that, the existing and acquired resources and competences of KFC and McDonald’s are described. Finally, in the discussion and conclusion chapters, the co-evolution between these processes are noticed, and it was sum up, that KFC’s and McDonald’s internationalization process in is evolutionary interaction with firms’ own resources and industry’s evolution. Introduction The modernization of fast food industry in China has begun relatively recently, in late 1980s’. The implementation of China’s reform to open up their market has encouraged Western fast food chains enter China’s fast food market. KFC saw China as a large market that was likely to develop in desirable manner, and was the first to enter Chinese fast food market in 1987 and
Summary This paper discusses the two strongest western fast-food brands, KFC and McDonald’s, entry to a Chinese market. KFC is the best known chicken fast-food restaurant chain, and McDonald’s is famous for its hamburgers and French fries. Literature review reviews the existing literature on internationalization. Internationalization is presented as a process that is changing over time. Later on it moves to mention an existing works that discuss the existing co-evolutionary relationship between the internationalization processes, organizational capabilities and resources, and the evolution of the industry within which firm operates. For the industry analysis, industry lifecycle theory is chosen, while it is also suggested that resources and capabilities have their own life cycles and with time lose value or can be renewed. In the case study, Chinese modern fast-food industry emergence and development is shortly discussed, KFC’s and McDonald’s internationalization activities in China are presented. After that, the existing and acquired resources and competences of KFC and McDonald’s are described. Finally, in the discussion and conclusion chapters, the co-evolution between these processes are noticed, and it was sum up, that KFC’s and McDonald’s internationalization process in is interaction with firms’ own resources and industry’s evolution. Introduction The modernization of fast food industry in China has begun relatively recently, in late 1980s’. The implementation of China’s reform to open up their market has encouraged Western fast food chains enter China’s fast food market. KFC saw China as a large market that was likely to develop in desirable manner, and was the first to enter Chinese fast food market in 1987 and evolutionary
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