The final option is the joint venture. There are several benefits to entering the market with a JV. Among them is the local experience that KFC would gain. Their local partner would be able to help them maneuver through the social and political pitfalls that the company may run into. A JV is less risky as well because the risk is shared among the partners. With each partner bringing different expertise to the table, there is less operational risk as well.

The drawback to a joint venture is that you must cede some control. This increases the risk of a lack of standardization. Additionally, with less controlling interest, the firm retains less of the profits, the remainder of which to the JV partner. However, a joint venture partner also helps the firm to gain access to the Chinese market. It encourages the Chinese government to remove barriers to operations and...
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