Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. The Walt Disney Company bought it in June. 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). 48 no. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? The number of baby boomer customers of McDonalds is also large. Do you want fries with that? This is a question that has been asked for decades. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. 1 What are the competitive advantages of KFC? However, Texas Chicken company was not listed in the rank in the analysis. Brands and Dominos to secure that accolade. The long-term relationship is a good example of a joint venture where the two companies have a common goal in mind. 14 no. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. 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. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. Considering CSR in the supply chain management strategies for McDonalds and KFC implies that the organisations have to behave in a socially responsible manner while establishing distribution networks for their products and/or treating wastes that result from the distributed products. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). Fried chicken is the only main course offered at Texas Chicken. 8 Why is KFC the best fast food restaurant? It also uses digital channels to collect customer feedback and to address complaints and issues. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! This process involves transformative mechanisms that are meant to outline various comprehensive road maps for detailing approaches that are implementable to ensure that business partners remain committed to the achievement of green technology in supply chains. (waterproof Packaging, Outside + More). McDonalds is popular for its hamburgers. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. However, apart from food, it has all focused on customer service. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. It allows you to develop a clear and concise plan for how to best compete against them. KFC operates in the fast-food industry just like McDonalds. Choose your writer among 300 professionals! 394-415. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. It has also managed a large supply chain to ensure the availability of good quality raw material. 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. These three different strategies are cost leadership, differentiation, and focus. For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. (2021) 'McDonald's and KFC Corporate Responsibility'. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. A large and varied product range is meant to cater to the taste and needs of various groups of customers. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. The company has a strong financial position and Crew members are trained on how to respond to a situation where a person gets lost in the desert. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. 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. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. The following paragraph is original, albeit slightly different. KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. You should have an apostrophe before the apostrophe in the word system. In case issues may come up that the supplied products fail to meet the demand placed on them, they have to deal with the challenge of redesigning their products to meet the emerging demands. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. Bakshi, R. & Fiksel, J. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. It has more than 35,000 branches in more than 120 countries. 10-11. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. Cheeseman (2013, Para. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. Within the last four decades, Americans have become large consumers of fast foods. It was founded in 1940, it has been operating ever since 1948 where they opened their Burger King was founded by a farmer known as Keith J. Kramer and his wife's uncle Mathew Burns who gained the inspiration from another popular burger franchise known as McDonalds. Apply online instantly. They strive to produce high-quality products, services, and processes. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. 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. IvyPanda. KFCs sources of competitive advantage. Every employee is trained in working tirelessly to keep a clean environment for all guests. Which company is the biggest competitor to KFC? 1350-1358. Since an organisation must balance all interests of the stakeholders, owners of the corporations become disadvantaged since high operational costs imply low returns on investments. 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. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. If you continue to use this site we will assume that you are happy with it. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. By John Dudovskiy. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. Retrieved from https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. KFCs top competitors include Wendys Company, Popeyes Louisiana Kitchen, Subway and Restaurant Group. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. The idea is to give customers a more natural product. From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. 68 no. 2, pp. The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. McDonalds has built a solid foundation in order to grow its business. This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. What Is KFCs Competitive Advantage? KFCs competitive advantage is its supply chain and distribution system. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. The fast-food chain is popular for a number reasons. ), What Time Does Mcdonalds Serve Lunch? Thirdly, is their ranking and sales volume. The principles must be directly related to the concerns of people who consume the products. McDonalds competitors in the United States and the United Kingdom are also direct competitors. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. Are KFC and Taco Bell competitors? IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. 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. 7 How is KFC different from the rest of the world? In addition, they offer a seasonal and regional menu option. McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. Burger King, which is privately owned, competes with McDonalds in the fast food industry. According to a recent Business Insider report, KFC is by far the most popular restaurant chain in China, and it is not the same as the American brand. Which company owns KFC? McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. Brand equity, food quality, customer service, in-store environment as well as marketing are all important to building higher customer loyalty than your competitors. 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. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. 2 August. 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. 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. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. McDonalds has already built a strong brand image in the fast-food industry. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. (And Everything Else! In this article, you will read about the sources of competitive advantage which have helped McDonalds grow into the largest fast food brand. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. KFC fried chicken tastes good because it is formulated to taste good. Web. The companys menu and infrastructure provide a high level of service. Business Week, 18-19. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. How does McDonalds operate in a monopolistic monopolistic market? For instance, its strategic marketing plan has the objective of instilling a strong belief that including fruit salads as additional products that are served alongside the regular hamburgers and other products that are offered by the company responds to the call for people to embrace good eating habits. IvyPanda. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). This shows that KFC retained their net earnings higher in year 2008 so that they can reinvest in its core business to pay its debt. Products enable a company to differentiate itself from competitors and gain competitive advantage. McDonalds customers have a lot of power if the restaurant wants to keep its customers. . McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus It helps retain customers as well as attract new ones and manage a healthy bottom line. McDonald (1st restaurant). McDonalds uses a mix of traditional and digital channels for advertising and promotions. View this and more full-time & part-time jobs in Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. 6, pp. The human mouth craves those flavors and that is what makes you go back for more KFC.. When selling a product, you can either sell the product or help people use the product. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. KFC got the most influence from McDonalds, the best competitor. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. Some activities or some abilities that it does better than its competitors, or at least as good as them. 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. McDonalds and KFC also encountered social costs such as poor perception of their products due to obesity and its related illnesses. For example, Greenspaces criticism that soy farming poses a major threat to the Amazon forests in Brazil equally affected the sustainability of KFCs chain supplies. With a variety of meals, sides, and drink options to choose from, McDonalds The fast food industry is highly competitive. 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. We`ll do boring work for you. 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. If youre the first to try something new or to address the spotted need, youll get better results. To achieve cost savings, the company employs economies of scale all over the world. The rivalry between McDonalds and Burger King is a classic example of business. An analysis of the competitive environment of McDonalds. According to CEO Score, KFC ranks second in terms of comparable CEO performance. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. McDonalds has a large selection of meals for both children and adults at a low cost. Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. The success of the organization has been its ability With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. They often result in excessive food wastes and accumulation of packaging waste. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. PRIZES FOR THE GRAND PRIZE WILL BE R50 000. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). McDonalds has direct competition in the quick-service restaurant industry from such companies as KFC, Subway, Taco Bell, Wendys, and Burger King. McDonalds has always tried to achieve higher customer satisfaction. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. Additionally, McDonalds customer service standards are among the highest in the fast food industry. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. In 2017, its revenue from U.S. was more than 8 Billion dollars. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow One major source of competitive advantage for McD is its extensive global presence. Another factor that contributes to customer selection of one company over another is the price. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). 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. 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. McDonalds and Burger King have been battling for market share in the intervening years. An important thing to realize is that the success of an icon is not limited to the business. McDonalds (Lock) and Burger King restaurants account for 38,695 of the worlds total restaurants, with 18,838 Burger King restaurants and 38,695 McDonalds (Lock) restaurants. Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. It then discusses the subject of sustainability in their chain supplies within the fast-food industry. Such products deserve to create value to their consumers. Leveraging scale, supply chain infrastructure and risk management strategies, it also collaborates with its suppliers for achieving competitive, predictable food and paper costs over the long term (McDonalds Annual Report 2017). McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. KFC focused on popularisation of chicken in a market that was dominated by hamburger consumers. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. This is IvyPanda's free database of academic paper samples. IvyPanda. Please note! Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. McDonalds food has dominance over the market with its cost effectiveness and availability. Similar to McDonalds, the organisation also follows the franchising model of operation. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. The lifestyle around here has changed in so many ways from when our parents were children. This process has the aftermath of reducing carbon prints for many organisations. The most preferred direction is the one that will ensure that supply chain approaches become cost effective to the extent of making an organisation experience competitive advantage. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. Who owns McDonalds restaurants? The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. Burger King and McDonalds are two of the biggest players in the game. The marketing strategies of McDonalds and KFC are very different. 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. McDonalds menu have much more choice for their customer to choose if compare to KFC. There are options for those who prefer to eat at a table or in one of the booths in the restaurant or to eat at a booth in the bar. McDonalds has established a global advisory council to provide nutrition recommendations as part of its mission. McDonalds adapted to future trends by allowing touchscreens to be used to select the menu from or introducing a vegetarian option to the menu. Burger Kings success can be attributed to one of its primary focuses on value for money. Thus, the KFC maintains its competitive advantage from its inimitable resources. McDonalds also sells their own specialty coffee under the brand name McCafe. They understand that their customers have distinct needs, which sets them apart from their competitors. It first offers some background information on the organisations. KFC was initiated in 1930. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. Consequently, unlike McDonalds, it found no need for talking about it. Icons are like the logos in any other business. However, again Texas Chicken sales volume are not stated in the statistic portal. As a result, they can become market share leaders in the industry. If you grow your own food, you can control quality better. When conducting a competitive analysis of McDonalds, it is important to consider their strengths, which include their global brand recognition, their scale and their financial resources. 2, pp.117-127. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. The manner of disposal of these wrappings is an issue of great concern to the organisations, especially because the companies operate in nations that have different policy frameworks to guide in the disposal of products and product-associated wastes. 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? Manipulation is a powerful tool as it can be easily misused to benefit the individual or organization who uses it, while furthering harming the people who are subjected to its detrimental effects. The franchisees own and operate more than 90% of McDonalds restaurants globally. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. We use cookies to ensure that we give you the best experience on our website. McDonald's is arguably the largest global fast food chain in the A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. While doing the market segmentation for the products, the target market has been well studied and investigated. If McDonalds wants to continue to grow, it must embrace change in the long run. Customer-focused approach brings advantages to KFC. The significance of these strategies in relation to sustainable supply chain is pegged on the idea that the most significant strategies for supply chains are the ones that translate into low costs to an organisation and in terms of social costs. This figure escalated to $142 billion in 2006. Leading fast food chain and has achieved a strong brand image in the fast food is! Service at a low cost products in any other business other restaurants in addition to other aspects of products... On value for money the way McDonalds operates by ensuring sustainability of chains. Or to address complaints and issues packaging, equipment and other goods from several independent suppliers word. 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