Yum! Brands, Inc.

Yum!Brands, Inc.

Thename of the firms: Why did you choose the firm?

Thename of the chosen company is I have opted for thecompany because it is one of the largest fast food restaurantbusinesses in the world. Besides, I am also a loyal customer of thecompany.


Yum!Brands, Inc. is American based company, headquartered in Louisville,Kentucky. However, the company is currently weighing optionssplitting into two: Kentucky subsidiary and Shanghai subsidiary. Thisseparation is aimed at increasing the capacity of the company toexploit the opportunities in the East while maintaining itsstronghold position in West market (Yum! Brands, Inc 13).

KeyGoods and Services:

Yum!Brands, Inc. specializes in providing fast food products. The companyoffers various categories of fast foods, which it sells directly toconsumers through its chain of restaurants that are spread across theworld. Yum operates four main brands: Pizza Hut, KFC and Taco Belland Wingstreet. Before 2011, however, the company also owned the A&ampWrestaurants and the Long John Silver’s.


Thetarget consumers of Yum Inc are diverse groups of consumers,including the young generations and the elderly generations, as wellas low, medium and high-income earners. The company believes that itscustomers have different interests that must be considered indeveloping the products. The company considers its consumer segmentsto be broadly divided into two: those who love fast foods, and thosewho are particularly conscious of adverse health implications of fastfoods. The group with high level of health consciousness is mainlycomprised of the elderly population with high risks of chronic healthcomplications that require them to be strict about their diet, whilethe other segment comprises of young generations. To meet theinterest of these consumers, Yum Inc offers products with differentingredient attributes tailored to the needs of its customers,providing products such as high fat and low fat, as well as highsugar and low sugar foods. The company is now an international oneand targets consumers from different parts of the world. The companyoperates in over 130 countries across the six continents. However,despite these segmentation approaches, a majority of the Yum Inc’sconsumers happen to be middle-income earners (Yum! Brands, Inc 3).

Formsof Business Ownership:

Theform of business ownership is a corporation. The company is now apublicly traded firm with different shareholders. As the largestinternational food restaurant company, the company operates well over42,692 restaurants across the world, of which 8,927 are fully ownedsubsidiaries, 796 are unconsolidated affiliates, while 30,930 thatare franchised.

Keycompetitive advantages:

YumInc enjoys various competitive advantages over its competitors. Oneof the benefits lies in branding. The Yum brand is an establishedbrand with a global presence. The consumers are used to its brandattributes and would always go for Yum products. This feature makesthem attract relatively steady cash sales that enable the company tosurvive market challenges and expand more than its competitors.

Thesecond area of competitive advantage of Yum Inc lies in its pricingstrategies. The company acknowledges that its target consumers havedifferent economic capabilities and seeks to differentiate and priceso that they can be affordable to all its customers. In essence, YumInc’s products are relatively low-priced to accommodate even thelow-income earners. By using this strategy, Yum Inc differentiatesitself from its competitors that offer products with prohibitiveprices. The ability to provide products to meet diverse consumerinterests lies in its segmentation strategies — every customerregardless of socio-economic status will find at least one product tobuy from Yum Inc stores. This segmentation also creates the allowancefor the company to separate and minimize the risks in case onesegment is severely affected (Yum! Brands, Inc 13).

Thirdly,engagement in corporate and social responsibility initiatives isanother area that Yum Inc exploits to create an edging competitiveadvantage. As opposed to the competitors, the company is committed toin engaging in various corporate and social responsibilityinitiatives, ranging from steering environmental protection andconservation through minimizing pollution, and abiding by the rulesand regulations in different jurisdictions, to engaging in charitableactivities. By exercising corporate social responsibility, thecompany has succeeded winning the support of the society, minimizingconflicts and avoiding penalties that could otherwise constrain itsgrowth and development process.

Lastly,the company enjoys the opportunities of establishing partnerships andpartnerships with other restaurants. Indeed, by using this strategy,the company has been able to benefit in different ways. In one way,these organizations have made it easy for the Yum Inc to penetratethe international markets with relative ease. The second advantage ofthe alliances is lowering the costs of operation because it is alwaysable to enjoy the legacies of established business such as customerand supplier bases. The partnerships and ventures also create theallowance for the company to benefit from skilled labor, as opposedto recruiting the new employees, as is often the case with startingfrom scratch (Yum! Brands, Inc 13).


Yum!Brands, Inc. StrategyReport for Yum! Brands. 2015.Web. October 1, 2016.&lthttpsednn4DQ&ampsig2=9nNzqgLMaW_iD1XhbnWG9w&ampbvm=bv.134495766,d.d24&gt