Market Position Analysis of Yum Brand - Essay Example

According to the company website, Yum Brand is adjudged as the world’s largest fast-food restaurant in the world in terms of the total number of operating units. With a staggering figure of 40,000 restaurants and presence in more than 130 countries of the world, the global sales figures of Yum increasing at a robust rate (Yum, 2013). Since the spin-off from PepsiCo in the year 1997, the company has truly become a global company. The assets skyrocketed from $4,531m to 9,011m in the global restaurant industry (Global Business Browser, 2014).

For the 36 weeks ended 07 September 2013, its revenues reduced by 6% to $8.91b and net income decreased 39% to $770m (Interim report, 2013). The company always aims at entering countries which have strong market potential and implements relevant operational strategies which allow them to surmount a different kind of market challenges. Yum Brands have experienced growth by focusing on the foreign markets such as China, India, and Brazil to name a few. Some of the key competitors of the firm are McDonald's, Burger King, Subway and Dunkin Donuts among others.

The company is also known for its philanthropic activities across the globe and has always received respect from the society. For example, the company offers employment opportunities to the unprivileged segment of the society. Though it is facing the decline in sales and profits, reports have suggested that the macroeconomic environment has always remained strong for the Yum Brands, especially in the overseas markets (Cho, 2012). According to Global Business Browser (2013), the restaurant's industry all over the world increased by 8.

5% in 2011 to reach a value of $2,457.1b and it is expected to increase by 41.7% to $3,482.5b by 2016. The company anticipates that the in the next 8-10 years, the rising incomes will continue to unfold and will allow millions of people to afford fast foods from Yum Brands (Cho, 2012).