competitive advantage of kfc and mcdonald'scompetitive advantage of kfc and mcdonald's

(Mintel, 2009m, p.1) creating competitive advantage for the company. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. McDonalds food has dominance over the market with its cost effectiveness and availability. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. This is IvyPanda's free database of academic paper samples. IvyPanda. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. 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. So far, McDonalds seems to be winning the battle. By continuing, well assume you agree with our Cookies policy. McDonalds focuses on the development of business models, which pay attention to employee concerns. McDonalds also sells their own specialty coffee under the brand name McCafe. 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. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. 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. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. 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. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. With a variety of meals, sides, and drink options to choose from, McDonalds This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. McDonalds serves over 69 million customers each day. It also encompasses coordination and integration of flow of materials among organisations. 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. Its hamburgers are actually squares instead of the usual We use cookies to offer you the best experience. This is correct. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. McDonalds uses a mix of traditional and digital channels for advertising and promotions. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. Their taste has changed a lot and they would rely only upon brands that ensure good quality. Burger King, which competes with McDonalds, provides high-quality food and memorable service. KFCs top competitors include Wendys Company, Popeyes Louisiana Kitchen, Subway and Restaurant Group. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. In 1960, it opened branches in the UK, Jamaica, and Mexico. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. As a result, they can become market share leaders in the industry. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. It first offers some background information on the organisations. McDonalds has built a strong image as a fast food brand that only offers great quality. McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. Upon noting the various sustainability problems in the supply of raw material and finished products, McDonalds and KFC have now focused on developing organisational policies for enhancing their corporate citizenship. IvyPanda. It is both popular and successful as a fast food chain. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. The fillet-o-fish is a popular menu item. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. Web. Retrieved from https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. There is no reason for them not to be a major competitor in the market. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. These three different strategies are cost leadership, differentiation, and focus. Higher price of the products in KFC compared to McDonalds and there are also cheap alternatives available due to less economical meal sets offered in KFC compared to its biggest competitor McDonalds, which they more focusing on strategy of seasonal induction of tempting deals. McDonalds strategy is to differentiate itself through efficiency and quality. Need a custom Assessment sample written from scratch by More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. It also operates within the fast-food industry. Your privacy is extremely important to us. McDonalds menu have much more choice for their customer to choose if compare to KFC. Other issues that have been considered in the paper in relation to sustainability of McDonalds and KFC supply chains include effects of strategies of supply chain on the environment, especially with reference to the need to produce green products to ensure protection of the environment. So think about KFC for a minute. The fast food industry is highly competitive. KFCs core competency is we can just come up with one. (waterproof Packaging, Outside + More). 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. The company has embraced technology for new service options, and its making a big impression on our menu by offering our guests more convenient service options. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). 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. If youre the first to try something new or to address the spotted need, youll get better results. 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. 2) confirms, Cheap food comes with steep hidden costs to the people who produce it, sell it, and eat it, to the environment, and to future generations. Can KFC and McDonalds operate sustainably? McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. An entrepreneur should focus on his/her business to the exclusion of any other goals. Which company owns KFC? 1350-1358. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. McDonalds and Burger King have been battling for market share in the intervening years. Not only that McDonalds have a lot of branches in Malaysia. 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. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. One of McDonalds competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. Amid undergoing various corporate transformations in a bid to establish a competitive advantage, KFC has not gone without challenges that are articulated to the need to enhance sustainability in its supply chains. They will have more seasonal menu and promotion such as recently FIFA World Cup they had released Rio series of menu set, Durian season come out with durian McFlurry, CNY with Prosperity set, Mix and Match with cost only RM 5.50 one set and now with Mexicana Chicken burger. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. McDonalds has built a solid foundation in order to grow its business. McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. Its also made the fast food landscape what it is today. 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. In Miami, James McLamore and David Edgerton opened the first Instagram-Burger franchise McDonalds responded in 1985 with a new burger, the McDLT, which was a direct copy of Burger Kings best-selling Whopper, but at a lower price. 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). In 1973 KFC joint Malaysia. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. McDonalds food has dominance over the market with its cost effectiveness and availability. In todays competitive world, Service Quality has become one of the most strategic tools for Every employee is trained in working tirelessly to keep a clean environment for all guests. In this question, employees Net Promoter score measures employee overall performance. 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. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. What are the competitive advantages of KFC? 1 What are the competitive advantages of KFC? The fast-food industry is highly competitive and it is important that both McDonalds and KFC continue to use marketing to stay ahead of their competitors. 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). The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. McDonald (1st restaurant). KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. The two largest fast-food companies have competed fiercely for market share since the 1950s. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. McDonalds customers have a lot of power if the restaurant wants to keep its customers. Brand equity is also a major source of advantage for a fast food brand. 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). Quality, choice and nutrition are highly important to the modern customers who are health conscious people. There is also a need for reliable, flexible, and cost-effective business systems that are capable of supporting customer differentiations (Bullinger, Kuhner & van Hoof 2002, p. 3533). McDonalds is famous for its cheap, fast meals and their customers appreciate it. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Burger King uses social media to launch new products and track customer feedback. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). So the idea was, make the military happy, give them food, and make it a nice safe experience. KFC is not the only restaurant chain in competition with KFC; there are also competitors such as Chick-fil-A, McDonalds, Wendys, and Popeyes Louisiana Kitchen. Save my name, email, and website in this browser for the next time I comment. Thus, the KFC maintains its competitive advantage from its inimitable resources. Who owns McDonalds restaurants? Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. 127143. How is KFC different from the rest of the world? Icons are like the logos in any other business. The number of baby boomer customers of McDonalds is also large. Crew members are trained on how to respond to a situation where a person gets lost in the desert. Its ability to penetrate to different types of markets is also a plus because it makes it easy for many people to have a close association with it. 17 no. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. However, apart from food, it has all focused on customer service. One major source of competitive advantage for McD is its extensive global presence. McDonalds has a long tradition of innovation. How does McDonalds operate in a monopolistic monopolistic market? From this line of thought, perspectives of green sustainable supplies have emerged in the discipline of supply chain. KFCs competitive advantage is its supply chain and distribution system. 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. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. 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. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. Monopolies can also reduce competition and stifle innovation. McDonalds is ranked first in the world, while KFC is ranked fourth. 2, pp.117-127. KFC focused on popularisation of chicken in a market that was dominated by hamburger consumers. For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. We utilize security vendors that protect and 2021. KFC is well-known for its fried chicken, which is made from their own blend of secret spices, which cannot be easily imitated by any one else. Choose your writer among 300 professionals! One major source of competitive advantage for McD is its extensive global presence. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. 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. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. The Walt Disney Company bought it in June. Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. Leclerc, Y. This observation suggests that the main strategy of success for McDonalds is to use its people to deliver services at outstanding high service rates so that customers do not waste their time waiting for services since such a move undermines the purpose for which fast-food restaurants are established. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. McDonalds is popular for its hamburgers. This process has the aftermath of reducing carbon prints for many organisations. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. An organisation can also protect shareholders from losing their investments by ensuring that risks that lead to a reduction of competitive advantage are proactively mitigated. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. In addition, they offer a seasonal and regional menu option. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. 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. The competitive strategies the restaurant follows are:-. They have to establish mechanisms of enhancing corporate governance. 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). The mcpizza and mclobster are two failures of the mcdonalds. ensure the integrity of our platform while keeping your private information safe. By John Dudovskiy. McDonalds has direct competition in the quick-service restaurant industry from such companies as KFC, Subway, Taco Bell, Wendys, and Burger King. (And Everything Else! Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. McDonalds website states that each location uses a daily, weekly, and monthly schedule of cleaning tasks. 8 Why is KFC the best fast food restaurant? 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. KFCs core competency is we can just come up with one. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. Thirdly, is their ranking and sales volume. McDonalds and KFC also encountered social costs such as poor perception of their products due to obesity and its related illnesses. This situation has made the US a fast-food nation. ), 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 organisation is also a subsidiary of the Yum Brands, which also owns organisations such as Taco Bell and the Pizza Hut fast-food chains. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. Is KFC healthier than McDONALDS? 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. The advertising wars were unsustainable in their own right they were prohibitively expensive. KFC got the most influence from McDonalds, the best competitor. McDonalds is a favorite fast-food for most Americans. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. KFC was the first foreign fast food company that open their branches in Malaysia (KFC Malaysia). 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. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. KFC also has a strong presence in China, which is a key growth market. 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. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. KFC struggles to address issues that influence the sustainability of its supply chain. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. Higher focus on customer service has become more essential than ever for businesses around the globe. 67-71. 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. McDonalds has reorganized its field operations in order to become more nimble and focus on franchising margins. For instance, KFC have chickens Because of their lower volume of sales, they are a better company than their competitors. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. As a fast food brand, it is trusted by millions around the world. I., 2000, Marketing Theory and Practice, lecture 6). KFC and Taco Bell are both competitors on a number of levels. According to these rankings, neither of these chains has achieved gender equality yet, but they are making headway. KFC is ranked fourth in the world in terms of gender score, while Taco Bell is ranked 130th. McDonalds has a large selection of meals for both children and adults at a low cost. Targeting children is seen as a form of social engineering.

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