Competitive factors of YUM Brands (MNC) to succeed in the business Research Paper

Competitive factors of YUM Brands (MNC) to succeed in the business - Research Paper Example Yum brands, based on the co-branding strategy have built a vibrant global business by focusing on four key growth strategies (Uggla & Filippson, 2009): Another co-branding strategy has been to pair KFC with Taco Bell or Pizza Hut with Taco Bell. The co-branding approach has added 30% to its sales compared to singe brand units (Enz, 2005). As the competitors such as McDonalds and Burger King were trying to reinvent their strategies, Yum Brands adopted an unusual track of combining diverse brands in a single restaurant. This led to increased sales and improved efficiency. Apart from offering different products to a diverse segment, Yums has responded to the obesity and health concerns also by co-branding with health organizations. As such it partnered with Susan G. Komen for the Cure, a leading US breast cancer charity, to sell pink buckets of fried chicken (Freedhoff & HÃ ©bert, 2011). Through such partnerships the Yum Brands is trying to send the message that inactivity and not consumption of its calorie-rich product is the cause of obesity. Their biggest expansion is in China and they have adopted the localization strategy and localized the menu options (Burchett, 2011). That apart, they have also introduced fine dining in India and China which is different from the fast food sector. They have their own fast food Chinese restaurant – East Dawning – and the brand association with KFC has a strong impact on the Chinese consumers. To gain competitive advantage, Yums pursued the hybrid strategy. As per Porter’s generic strategies, their strategy could fall under the differentiation strategy as they offered higher perceived value. They did not go for cost-leadership strategy because they did not want to be perceived as low-cost brand. However, based on Bowman’s Strategy Clock, this is a hybrid strategy. Their prices are at par with the competitors but they offer higher