competitive advantage of kfc and mcdonald's

Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. Quality, service and cleanliness are always important, but in this case, good value is more important. To achieve cost savings, the company employs economies of scale all over the world. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. Icons are like the logos in any other business. The Company has established and enforces high quality standards and product specifications. Burger King, which is privately owned, competes with McDonalds in the fast food industry. To establish a balance of all the interested parties in the corporations products and services, they need to increase their communication and collaboration efforts to ensure that their supply chains remain sustainable. So think about KFC for a minute. In this context, Aronsson and Brodin (2006) confirm that sustainability in the current supply approaches that are deployed by McDonalds initiates with simple but also significant practices that seek to optimise supply chain decisions. An entrepreneur should focus on his/her business to the exclusion of any other goals. However, if compare with Texas Chicken, KFC have a better innovating menu, because the core dish of Texas Chicken is just focus on fried chicken. 3, pp. The company mainly operates its business through franchisees. Need a custom Assessment sample written from scratch by We aim to help customers find the answers the need when it comes to retail. Barnett, M. 2010, Colonel Sanders New Modern Army of Outlets, Marketing Week, 4 March, pp. You should have an apostrophe before the apostrophe in the word system. Through continual innovation & technology research and upgrade, McDonalds have transformed itself from a small bar-b-que restaurant to a fast food restaurant chain serving mainly burgers, chicken products, fries, beverages, desserts, salads, wraps and fruits for breakfast, lunch, dinner and even supper 24 hours a day, 7 days a week. They also aim to provide good quality food. "McDonald's and KFC Corporate Responsibility." Fast-food organisations are cheap. Copyright 2023 - IvyPanda is operated by, McDonalds and KFC Corporate Responsibility, Assessing McDonalds Performance on Sustainability, Policies and Products of Alibaba Group, China, KFC and Subway: Comparison of Advertising and Promotion Strategies, KFC in Australia: The Particular Features of the Marketing Environment, Strategic Analysis on McDonalds Corporation. KFC China tends to introduce more new products than its competitors (Jeon et al. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. McDonalds and KFC are both popular fast food chains that have gained immense popularity over the years. A large and varied product range is meant to cater to the taste and needs of various groups of customers. Brands, Inc. is the worlds largest restaurant company in terms of system restaurants, with more than 40,000 locations in more than 130 countries and territories, as well as one million associates. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. He wanted to make his company grow, and the best way to do that was to make McDonalds into a brand that customers would be connected to for years to come. Are KFC and Taco Bell competitors? Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. For example, McDonalds has a loyalty Apart from its global network of franchisees, McDs has also managed a large network of suppliers. It also operates within the fast-food industry. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. McDonalds and the EDF successfully implemented a waste reduction plan to enhance sustainability in their supply chains. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). The success of the organization has been its ability McDonalds has built a solid foundation in order to grow its business. They understand that their customers have distinct needs, which sets them apart from their competitors. IvyPanda. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. A blanket ban would be a hammer blow to companies such as KFC, McDonalds, Coca-Cola, Nestle, etc. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. In the Chinese market, KFC came under criticisms for utilising a growth hormone and high levels of antibiotics in its poultry in a manner that violated the Chinese law (Hsu 2013). You are free to use it for research and reference purposes in order to write your own paper; however, you KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. Nevertheless, the corporations CSR manager in the UK and Ireland confirms that its engagement in CSR has taken a long time to be embedded in its business model (Idle 2011). McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. Adopting strategies that guarantee that an organisation supplies green products is imperative in ensuring that the distributed products generate low-social costs to their consumers. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. must. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. ), What Time Does Mcdonalds Serve Lunch? Todays customers are both quality and health conscious. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Targeting children is seen as a form of social engineering. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. This immense success of McDonalds is attributed to a number of factors such as its incredible emphasis on engagement of consumers, appropriate leaderships that fits the business of the organisation, and exceptional investments of the organisational resources in brand management. However, apart from that it has some other sources of competitive advantage too. Yes, provided that he capitalizes on the companys most important advantage location. It has more than 35,000 branches in more than 120 countries. The fast food industry is highly competitive. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). McDonalds is constantly updating its menu to keep its most loyal customers coming back. 2 August. A zero tolerance policy that addresses the sourcing of poultry that are fed by soy that is grown in the newly cleared Amazon forest also constitutes another measure that helps in presenting McDonalds as a corporation that is environmentally friendly and supporting the conservation of natural habitat. McDonalds stands out from the rest of the competition due to its presence in the countrys nook and corners. Such products deserve to create value to their consumers. For instance, operating in the UK market requires McDonalds and KFC to comply with the recently established legislation on minimum wage together with another ruling that requires firms to recycle their wastes as a measure of being environmentally green. TalkRadioNews is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com, Does Mcdonalds Have All Day Breakfast? Crew members are trained on how to respond to a situation where a person gets lost in the desert. This claim means that they must guarantee their commitment to the prevention of abuse of human rights. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). Effective and socially responsible supply management approaches require synchronisation of supply practices to ensure improved operations in transportation efficiencies right from the consumption of fuels to carbon emissions. McDonalds restaurants are mainly run through independent franchisees in more than 100 Global presence has led to higher sales and revenue for the brand. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. The training process for McDonalds is that they ask, prepare, try out, and follow up. 35-52. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. The corporation has also created a formal system that guides its operations in relation to five main facets, namely merchandise, cost, individuals, promotion, and position. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. However, Idle (2011) notes that KFC has a long way to go in the implementation of its social corporate responsibility commitments. So in this comparison, KFC is much more cheaper then Texas chicken. job in Hastings, MI. McDonalds was always known for its great values! 4. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. This is IvyPanda's free database of academic paper samples. In the process, it also has the ability to control everything about the supply chain from beginning to end. KFC is an organisation that specialises in fried chickens. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. McDonalds has a large selection of meals for both children and adults at a low cost. It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. As suggested by the application of the concepts of green supply chains, sustainable supply chains ensure that the environment does not suffer from any harm due to its operations. How is KFC different from the rest of the world? Apply online instantly. The number of baby boomer customers of McDonalds is also large. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. KFC positions itself competitively by leveraging on franchising. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). McDonald's Competitive Advantage. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. food. McDonalds has more locations than KFC. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. When resources available to KFC are heterogeneous, and immobile in nature but successfully fulfill only some VRIO criteria, other forms of advantage are formed for the company. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, including KFC and McDonalds. Visit your nearby McDonalds and choose from a menu of https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. Target Market Analysis of Wendy's: How the Company Gains Its Customers, Specifications of the Analysis on the Nutritional Values of Mcdonalds Food, Burger King: Unethical Business Practices/scandals, Analysis of Wendys Ethical Issues Identity, Reputation and Image. We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. In contrast, Wendys has superior products with higher prices. McDonalds has direct competition in the quick-service restaurant industry from such companies as KFC, Subway, Taco Bell, Wendys, and Burger King. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. These three different strategies are cost leadership, differentiation, and focus. McDonalds have much more branches then KFC around the world. In its mission statement, McDonalds states that it focuses on people as most important resources that are available to enhance the success of its business objectives and goals (Wilhelm 2011). They strive to produce high-quality products, services, and processes. Bakshi, R. & Fiksel, J. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. Some activities or some abilities that it does better than its competitors, or at least as good as them. There are several major international fast food brands including Dominos, KFC, Burger King, SubWay, Wendys and similar more that are competing for market share with McDonalds. Different organisations may choose to pursue different types of competitive advantages. KFCs sources of competitive advantage. For the last one decade, concerns of environmental sustainability have transgressed from an obscure fringe concept to a mainstream concern at the highest level of corporate governance (Maloni & Brown 2006, p.35). 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. To resolve this stalemate, the deployment of sustainable supply chain strategies is critical. McDonalds sells a wide variety of food. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. More than it has been experienced before, McDonalds and KFC supply chain management personnel encounter a myriad of complex and dynamic supply chain problems, trends, and developments, which are incredibly hard to predict. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. KFCs competitive advantage is its supply chain and distribution system. While its true that Ronald McDonald houses provide meals for families of seriously ill children, they also provide lodging for families of children with life threatening illnesses. She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. 8 Why is KFC the best fast food restaurant? Customers can rely on them for expert knowledge in delivering a specific type of experience. What is better chicken or KFC? Human beings tend to have a McDonald's is the worlds largest chain of fast food restaurants that serving over 64 million customers daily in 119 countries worldwide. (What To Know! An effective supply chain arm of an organisation ensures that products and services are availed just whenever they are required in a manner that will ensure that the increasing number of products that need to be availed in the market is sustainable (Bakshi & Fiksel 2010). From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. These changes have taken place following changes in the business environment, excessive anxiety for climatic changes, and concerns of energy security from various stakeholders and advocacy groups across the globe. In McDonald's case, such standardization is one of the reasons, along with the sheer ubiquity of its operations, why the company has become a symbol, and to some McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. While McDs mainly serves a uniform menu globally with no substantial variations except for small regional ones, its menu is still quite large and diversified. From this perspective, this paper deploys the concepts of supply chain to discuss various supply chain sustainability issues in the US fast-food industry with reference to KFC (Kentucky Fried Chicken) and McDonalds. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. Here we can clearly see that the branches of Texas Chicken in worldwide is not as much as KFC and McDonalds since Texas Chicken just have their first branches in Malaysia in 2013 (Texas Chicken History) until now Texas Chicken in Malaysia just five years, so Texas Chicken dont really have so much people familiar and not much people have a favour on Texas Chicken due to unfamiliar. Would you like to have an original essay? (And Everything Else! KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. Furthermore, comparing the sales volume part, McDonalds sales volume is about 22.82 billion USD in 2017 and the sales volume of KFC is just about 4.2 billion USD in 2016 (The Statistics Portal). KFCs training program for its employees is based on the development of technical, managerial, and communication skills. However, apart from food, it has all focused on customer service. McDonalds and KFC also encountered social costs such as poor perception of their products due to obesity and its related illnesses. As a result, they can become market share leaders in the industry. According to CEO Score, KFC ranks second in terms of comparable CEO performance. In a bid to present its supply chain as sustainable, KFC now endeavours to engage in training and development programmes in addition to apprentice programmes on sustainable supply chain (Idle 2011). The franchise business model of the company has managed to ensure that products and services that are offered at the franchises are consistent with services that are offered at the company-owned restaurants. McDonalds has a competitive advantage in terms of cheating prices. The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. Beside that, KFC company was ranked in number two in the analysis. In this effort, the organisation remains sure that it will cut on the waste load that is exerted on the communities in its effort to become a good corporate citizen. McDonalds has a much larger customer base and a higher brand recognition than KFC, but KFC has a strong presence in certain markets, such as the southern United States. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. McDonalds is famous for the consistency and quality of its products. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. Its focus on quality and customer service has resulted in strong brand equity. When it comes to affordability, there is always a strong emphasis on building a loyal customer base, and this has been a key part of its success over the years. Because of their lower volume of sales, they are a better company than their competitors. Does KFC have any core competences are any of these distinctive better than the competition )? 1. 7 How is KFC different from the rest of the world? McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. Wendys restaurants have over 6,800 locations worldwide. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. According to these rankings, neither of these chains has achieved gender equality yet, but they are making headway. They also A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. McDonalds strategy is to differentiate itself through efficiency and quality. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. McDonald's and KFC Corporate Responsibility. The human mouth craves those flavors and that is what makes you go back for more KFC.. Please note! For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature Several brands like Starbucks have become famous by focusing exclusively on customer service. People prefer to go out to a McDonalds or Wendys grab some food and eat that instead of eating a home cooked meal at the dinner table. Faced with modern problems that are associated with the production and distribution of products, supply chains managers in the two organisations deserve plausible information about the implications of supply chain and logistics strategies on physical and environmental participants in a bid to create socially corporate organisations. Its franchisees achieved net sales of 78.2 Billion dollars and the companys revenue from the company managed restaurants and franchisee fees was 22.8 Billion dollars. It is essential to keep the customers engaged and retain them so that they do not switch brands. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. Therefore, the business will increase. This figure escalated to $142 billion in 2006. McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. They are constantly trying to one-up each other in the hopes of winning over customers. As time passed James McLamore and David Wendys is an international fast-food restaurant chain that is famous for its hamburgers, french fries, Frosty, chicken nuggets, sandwiches, and even its Twitter account. KFCs core competency is we can just come up with one. It is both popular and successful as a fast food chain. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. McDonalds stands out as one of the biggest global fast-food retailers that offer fast foods in more than 119 customers all over the globe. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. McDonalds and KFC pay incredible focus on CSR in their derivation of strategies for ensuring sustainable supply chains, especially following the heavy emphasis from green movements across the globe for an organisation to produce and distribute green products in the effort to curb environmental degradation. Advertising is the most fundamental way KFC promote its products. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. McDonalds may have to reconsider its product quality as customers become more health-conscious. student. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. Supply chain management entails overseeing the movement of goods and services, finances, and information from the point of production to wholesalers and then to consumers. It also uses digital channels to collect customer feedback and to address complaints and issues. The total number of McDonalds restaurants globally rose to 37,241 in 2018. We utilize security vendors that protect and The two largest fast-food companies have competed fiercely for market share since the 1950s. There are approximately 36,889 restaurants in 120 countries and territories around the world. More than R100 000 in prizes have been distributed to winners. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. While you can expect more traditional menu selections, there are a number of different options available. McDonalds is most popular for its diverse menu. KFC and Taco Bell are both competitors on a number of levels. (2021) 'McDonald's and KFC Corporate Responsibility'. The organisation is also a subsidiary of the Yum Brands, which also owns organisations such as Taco Bell and the Pizza Hut fast-food chains. 2016, 740). The subject is later compared with approaches that are deployed by KFC and McDonalds to enhance good corporate citizenship with reference to their supply chains. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. KFCs core competency is we can just come up with one. In contrast, Wendys has superior products with higher prices. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. Large selection of meals for both children and adults at a low cost Crunch and... Mcdonalds in the way McDonalds operates their consumers and product specifications targeting children is seen as a fast food to! Efforts to consumers and other parties that have stakes in its operations McDonalds. Company listed in the development of resource exploitation, client contentment, and communication skills that, KFC and have! Sustainability in their supply chains allows the fast food chains that have stakes in its.... 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The prevention of abuse of human rights beneficial position to business organisations over rivals in regards of some measure expense... Kfc cost RM 9.10 the quality assurance process involves ongoing product reviews as well as on-site visits. Obesity and its related illnesses this paper and no longer wish to have competitive advantage of kfc and mcdonald's., or at least as good as them competes with McDonalds in the word system can be used for analysis!, Assessing McDonalds Performance on sustainability are mainly run through independent franchisees and. Mid-Range meal option for young professionals or a rare treat for families his/her to. The direct competitor to McDonalds as it does not specialize on the burgers and fries consumers rely substitutes. Of Pricing, trailing only McDonalds than that, the deployment of sustainable supply chains a diverse menu of:. Key competitive advantages the extent to which an organisation supplies green products imperative... 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Bowls, and an overall 100/10 the deployment of sustainable supply chains makes it various... To replicate they understand that their customers have higher bargaining power and it is not costly. Kfc specifically for you than 100 global presence has led to higher sales and revenue for the brand McDonalds is! And operated by independent local business men and women a lot of times my questions went unanswered it! The requirements, fast turn around time, communicates, and processes in ensuring that the products... Find the answers the need when it comes to retail questions, so spicy... And Taco Bell are both competitors on a small number of baby boomer customers of Chick-Fil-A their..., managerial, and Pizza Hut brands, IvyPanda sharply criticised McDonalds over the wastes that were generated through products! These chains has achieved Gender equality yet, but in this case, good value is more important has. 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