One major source of competitive advantage for McD is its extensive global presence. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. The franchisees own and operate more than 90% of McDonalds restaurants globally. KFC is a subsidiary of Yum! McDonalds may have to reconsider its product quality as customers become more health-conscious. Its parent company, the Yum Brands, reported in early 2009 that it had already exceeded its target on CSR by a reduction of greenhouse emissions by 51,000 metric tonnes (Environmental Leader 2009). (2021, August 2). McDonalds focuses on the development of business models, which pay attention to employee concerns. 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. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. If you continue to use this site we will assume that you are happy with it. 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). We utilize security vendors that protect and Kroc was certainly a businessman with a plan. It has more than 35,000 branches in more than 120 countries. Richard and Maurice, Their key strategies include their focus on value and their expansion into new markets. Creating customer loyalty is difficult in the 21st century. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! McDonalds brand value is unrivaled among its competitors in terms of brand value. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. The main items included on its menu are hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, french fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCaf beverages and other beverages. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. Several brands like Starbucks have become famous by focusing exclusively on customer service. In this way, a large menu becomes a source of distinct advantage for McDonalds which is the favourite fast food brand of a very large group of customers from all generations. However, it leads to added costs, which attract low profitability. McDonalds is ranked first in the world, while KFC is ranked fourth. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. KFCs core competency is we can just come up with one. I remember the old ad from the 1980s where the slogan was Im lovin it! I remember my parents used to laugh at the Whats on Your McNugget slogan. Businesses also use it for differentiating themselves from others. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. 2016, 740). Differentiation. Does KFC have any core competences are any of these distinctive better than the competition )? Other than TV advertising, there are other ways that McDonalds uses to gain customers. What are the competitive advantages of KFC? Yum Brands owns Taco Bell, KFC, and Pizza Hut. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). How is KFC positioning itself to gain a rival edge over? Even though McDonalds is as popular and well known as it gets, success did not happen by itself. It helps retain customers as well as attract new ones and manage a healthy bottom line. In contrast, Wendys has superior products with higher prices. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. The company has focused on expanding its menu offerings, increasing its drive-thru and delivery options, and improving its customer service in order to appeal to a wider range of diners. They want their food to be good in terms of quality and low on calories. Monopolies can also reduce competition and stifle innovation. If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. It allows you to develop a clear and concise plan for how to best compete against them. McDonalds is a big supporter of the Ronald McDonald Houses. KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. How does McDonalds operate in a monopolistic monopolistic market? McDonalds has removed some of its classic menu items (like supersize options) because people are more health conscious. 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. 7 How is KFC different from the rest of the world? KFC recognises the level of concern by the media and consumers over its foods nutritional value, especially in a market that is dominated by criticism of potential threats of obesity. Pizza, according to a report, is one of the most unhealthy foods on the planet. Other strategies include focusing on developing healthy meals. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. 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. A large and varied product range is meant to cater to the taste and needs of various groups of customers. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. The main purpose of McDonalds is to give its customers the best possible value for their money. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. It is because apart from helping them build higher customer loyalty and driving customer retention rate high, it also helps the business maintain a strong image and grow its popularity. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. For example, McDonalds has a loyalty KFCs success can be attributed to its distinct brand name and distinct recipes, which allow customers to expect high-quality food from one of its restaurants. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). 2 no.1, pp. It has also managed a large supply chain to ensure the availability of good quality raw material. Indeed, both organisations have some existing loyal customers who must be supplied with products and services. Not only that McDonalds have a lot of branches in Malaysia. It is why McDs spends a significant sum on marketing every year. Higher focus on customer service has become more essential than ever for businesses around the globe. An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. Burger King, which is privately owned, competes with McDonalds in the fast food industry. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. Brand equity is also a major source of advantage for a fast food brand. Adopting green strategies for supply chain management is not only a measure of ensuring sustainable supply chain management, but also a gauge of ensuring that an organisation behaves and acts in a socially responsible manner. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. McDonalds stands out from the rest of the competition due to its presence in the countrys nook and corners. Global presence has led to higher sales and revenue for the brand. 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. Apart from intense competition and pricing pressure, there are other reasons too that businesses have to struggle to retain their existing customers and build strong customer loyalty. 49 no. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. For instance, KFC have chickens come with whipped potatoes, salads, buns and soft drink but McDonalds have fried chickens with French fries and soft drink only in both fried chicken set. McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. Having a focus on quality has allowed them to maintain a good supply chain, which helps ensure the high quality of their food and the safe handling of any contaminants. The franchisees own and operate more than 90% of McDonalds restaurants globally. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. KFC ranks second in terms of CEO Score, trailing only UPS. Fried chicken is the only main course offered at Texas Chicken. McDonalds also sells their own specialty coffee under the brand name McCafe. Green technology and green products communities will be interested to know whether products that are supplied by both McDonalds and KFC through their supply networks meet the concerns of environmental protection. While doing the market segmentation for the products, the target market has been well studied and investigated. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. Novak, D. 2014, Recognising the Power of Yum!, Yum!, University of Kentucky, Kentucky. McDonalds has built a strong image as a fast food brand that only offers great quality. The Company has established and enforces high quality standards and product specifications. The long-term relationship is a good example of a joint venture where the two companies have a common goal in mind. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. Wilhelm, R. 2011, McDonalds Formal Business Structure. McDonalds is a global fast food restaurant chain headquartered in Chicago. Its why the brand has retained heavy focus on food quality, in-store environment and customer service. Barnett, M. 2010, Colonel Sanders New Modern Army of Outlets, Marketing Week, 4 March, pp. Next, is the their Menu. Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. KFC Corps is considered a monopolistic competitive market, whereby it is part of a huge fast food industry with an extensive global reach, but the originality of its products makes KFC very much unrivalled. It also provides comfort for children as they recover from serious sickness or diseases. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. KFC was the first foreign fast food company that open their branches in Malaysia (KFC Malaysia). On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. All of these have been successful for the company. Many businesses use cross-selling to maximize sales. McDonalds and KFC also encountered social costs such as poor perception of their products due to obesity and its related illnesses. Customers Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. McDonald's is arguably the largest global fast food chain in the Can they constitute good examples of corporate citizens in the US fast-food industry? Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. KFCs sources of competitive advantage. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. McDonalds and KFC are both popular fast food chains that have gained immense popularity over the years. A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. McDonalds is constantly updating its menu to keep its most loyal customers coming back. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). They often result in excessive food wastes and accumulation of packaging waste. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. (Mintel, 2009m, p.1) creating competitive advantage for the company. Otherwise, rising competition is leading to higher operational and marketing costs. They use four steps of training for each employee. Such strategies cut across many sustainable supply efforts, including sending automated emails to inform customers on any new advances in terms of product evolution and/or tracking and linking of information via strategies such as instant messaging. For take-away foods, they must wrap customers food. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. Leclerc, Y. Deadline from 3 hours. Learn more about the types of strategies McDonalds uses by reading this article. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. However, Idle (2011) notes that KFC has a long way to go in the implementation of its social corporate responsibility commitments. KFC and Taco Bell are both competitors on a number of levels. They are the leaders of the industry and provide training to their franchisees. Thirdly, is their ranking and sales volume. By continuing, well assume you agree with our Cookies policy. Thus, the KFC maintains its competitive advantage from its inimitable resources. 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. I., 2000, Marketing Theory and Practice, lecture 6). The quality assurance process involves ongoing product reviews as well as on-site supplier visits. Due to intense competition in the fast food industry, marketing has become more important than ever. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. 2021. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. The company cares about the health of its customers. The dataset contains various nutrients hidden in Mc Donald's foods in terms of Fast food has no doubt been considered as a part of the lives of everyone who is living in the evolved and modernized world. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. KFC operates in the fast-food industry just like McDonalds. 3, pp. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. Indeed, considering the two corporation approaches to sustainability, sustainable supply chain is a function of all persons and agencies that are involved in the whole supply chain until products of an organisation are consumed and/or until the wastes are disposed. KFC is not the only fast food chain in competition with KFC; there are also competitors such as Popeyes Louisiana Kitchen, McDonalds, Wendys, and Jack in the Box. 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. 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. However, in addition to these issues, as from 2003, PETA (People for Ethical Treatment of Animals), has sharply criticised KFC over its approaches in the selection of poultry across the globe (Yaziji & Doh 2009). McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. Burger King and KFC are both competitors. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. Excellent! The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. The company has been able to maintain its lead in the chicken sandwich market, despite KFCs best efforts. (waterproof Packaging, Outside + More). By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. These critical aspects help in building the competitive advantage of an organisation. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. By John Dudovskiy. Which company is the biggest competitor to KFC? 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. It is essential to keep the customers engaged and retain them so that they do not switch brands. The rivalry between McDonalds and Burger King is a classic example of business. (what To Know! KFC is popular for its fried chicken. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. Products enable a company to differentiate itself from competitors and gain competitive advantage. Apply online instantly. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. The main items on its menu include hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, french fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCaf beverages and other beverages. As a fast food brand, it is trusted by millions around the world. 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. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. McDonalds Business Strategy and Competitive Advantage. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). In 1987, it was amongst the first western-based organisations that opened new business branches in China. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. ), What Time Does Mcdonalds Serve Lunch? The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. So, it bring a lot of difficulty to our group hard to make a comparison between sales volume of Texas Chicken and KFC as well as McDonalds. It has quality centers around the globe which ensure that the high standards company has set are consistently met. Brands and Dominos to secure that accolade. The competitive strategies the restaurant follows are:-. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. The success of the company led to the growth of the fast food industry and the company was named to Fast Food Hall of Fame in 2009. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. (adsbygoogle = window.adsbygoogle || []).push({}); vitag.outStreamConfig = { type: "slider", position: "right" }; McDonalds Sources of Competitive Advantage, Competition in the fast food industry has grown intense due to the rise of several local and international brands. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. 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. Which company owns KFC? There are several major international. Your privacy is extremely important to us. While these fast-food giants have a The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. The fillet-o-fish is a popular menu item. Sure, they brag about their 11 herbs and spices, which is great, but thats not what you are tasting when you bite into some extra tasty crispy, Bayer explained. This plan is pivotal in helping to resolve various challenges that relate to supply chain management in business environments that are characterised by changing trends because of globalisation, intensive competition, and the need for securing and protecting the environment within which the organisations are established. 4. This claim means that they must guarantee their commitment to the prevention of abuse of human rights. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. 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. An analysis of the competitive environment of McDonalds. We`ll do boring work for you. Choose your writer among 300 professionals! She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. This is where everything about the restaurant industry is taught. McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. Some activities or some abilities that it does better than its competitors, or at least as good as them. Hence, McDonalds is still cheaper than KFC. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. 1982 April 29th McDonalds first join Malaysia market (Pui, 2017) and now they already have about 271 outlet in Malaysia and they also estimated that they will have about more 500 outlet in Malaysia by the years of 2020 (Wong, 2013). To achieve this goal, the organisation advocates a bureaucratic formal management structure. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. After the announcement of the ban at McDonalds that soldiers in uniform would be barred from entering the restaurant, many soldiers and their families became very upset, because they were unable to fulfill their needs at the fast-food restaurant. The brand is well-known for its fried chicken and has a loyal customer base. . 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. 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. Heat the pancake batter on the hot grill and pour only a small amount of batter per pancake. The company has kept their marketing messages simple and consistent. It is headquartered at Louisville, Kentucky. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. These include billboards, radio ads, and digital ads. In todays competitive world, Service Quality has become one of the most strategic tools for The following paragraph is original, albeit slightly different. McDonalds website states that each location uses a daily, weekly, and monthly schedule of cleaning tasks. McDonald's and KFC Corporate Responsibility. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). 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. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). However, Texas Chicken company was not listed in the rank in the analysis. McDonalds Corporation, also known as McDonalds, is an American multinational fast food restaurant chain founded in 1940 by Richard and Maurice McDonald in San Bernardino, California, United States. This is not pushy, the goal is to make extra money. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. 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. McDonalds has been criticized for its advertising to children. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. Consequently, unlike McDonalds, it found no need for talking about it. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. It is an amazing service that is very much needed. If youre the first to try something new or to address the spotted need, youll get better results. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006).
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