competitive advantage of kfc and mcdonald's

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 competitors in the United States and the United Kingdom are also direct competitors. 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. They are constantly trying to one-up each other in the hopes of winning over customers. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. Although one of the green approaches to the creation of sustainable chain supplies that are driven by perspectives of green supply chains is through recycling of paper, a more effective way is the creation and embracement of technological ways of maintaining supplies data through mechanisms such as holding data in soft form. McDonalds customers have a lot of power if the restaurant wants to keep its customers. 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. If McDonalds wants to continue to grow, it must embrace change in the long run. What is better chicken or KFC? McDonalds (MCD), Burger King (BKW), Carls Jr., Papa Johns, and Pizza Hut are among the companies that must supply Shanghai restaurants, according to a government statement. So think about KFC for a minute. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. McDonald (1st restaurant). McDonalds has a competitive advantage in terms of speed of service. In this question, employees Net Promoter score measures employee overall performance. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. They offer hamburgers, french fries, breakfast menu items and many more. These include billboards, radio ads, and digital ads. Such legal provisions have the impact of raising the cost of running the business of both organisations. (what To Know! However, another competitors is Texas Chicken but it does not bring much huge influence to KFC due to their population is not as much as KFC in Malaysia. McDonald's and KFC Corporate Responsibility. Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. This allows them to provide a superior experience to their customers. Are KFC and Taco Bell competitors? The fast-food organisation also stopped offering its eat-in foods in cardboards in 2008. More than R100 000 in prizes have been distributed to winners. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. This makes sense. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. McDs is continuously evolving its menu to meet its customers needs and choices. The database is updated daily, so anyone can easily find a relevant essay example. KFC China tends to introduce more new products than its competitors (Jeon et al. The following paragraph is original, albeit slightly different. As a result, they can become market share leaders in the industry. The QSR industry has grown and is populated by a very large number We use cookies to ensure that we give you the best experience on our website. Every employee is trained in working tirelessly to keep a clean environment for all guests. professional specifically for you? This is one of the hallmarks of McDonalds success. McDonalds is famous for the consistency and quality of its products. (your Full Guide), Why Is Mcdonalds So Cheap? KFC operates in the fast-food industry just like McDonalds. 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. Todays customers are both quality and health conscious. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. The lifestyle around here has changed in so many ways from when our parents were children. Competition in the fast food industry has grown intense due to the rise of several local and international brands. 2 no.1, pp. 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 In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. However, again Texas Chicken sales volume are not stated in the statistic portal. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. 1 What are the competitive advantages of KFC? McDonalds is a global fast food restaurant chain headquartered in Chicago. McDonalds owns 82 of their locations and can rent them out to franchisees. This is IvyPanda's free database of academic paper samples. Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. 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. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. This claim means that they must guarantee their commitment to the prevention of abuse of human rights. 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. McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. The product ranges originality factor ensures a fixed or even growing share of the market. 573-580. 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. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. 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. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. Would you like to have an original essay? Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. To resolve this stalemate, the deployment of sustainable supply chain strategies is critical. We`ll do boring work for you. It also operates within the fast-food industry. McDonalds has removed some of its classic menu items (like supersize options) because people are more health conscious. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. 1. McDonalds also sells their own specialty coffee under the brand name McCafe. When McDonalds restaurants see donations in boxes, they collect the donations and give away the donations to Ronald McDonald Houses to help children with serious illnesses. McDonalds has always tried to achieve higher customer satisfaction. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. An important thing to realize is that the success of an icon is not limited to the business. Novak, D. 2014, Recognising the Power of Yum!, Yum!, University of Kentucky, Kentucky. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). Compare both KFC and Texas Chicken in perspective of balance meals, they are same. 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. How is KFC different from the rest of the world? 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. 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. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. The Company has established and enforces high quality standards and product specifications. Texas Chicken has over 1,700 locations in 23 countries worldwide. Why is KFC the best fast food restaurant? Analyzing other companies who provide the same products or who can meet the same needs in various ways is one way to look at other companies. "McDonald's and KFC Corporate Responsibility." Claims of failure to invest in green technologies and use of green raw material have also challenged McDonalds sustainability of its supply chains. 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. They also aim to provide good quality food. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. KFC is ranked fourth in the world in terms of gender score, while Taco Bell is ranked 130th. 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. It is headquartered at Louisville, Kentucky. KFCs competitive advantage is its supply chain and distribution system. McDonalds restaurants are mainly run through independent franchisees in more than 100 This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. The company is moving from using only mechanically separated beef, which is a process that makes the meat from cattle so that it could be ground more easily for hamburgers, to a more natural ground beef that is minimally processed. 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. 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 has added their menu to continue the tradition of good burgers and fries. McDonalds brand value is unrivaled among its competitors in terms of brand value. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. 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. IvyPanda. 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). 68 no. In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. The marketing strategies of McDonalds and KFC are very different. The success of the organization has been its ability This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. (What To Know! KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. job in Hastings, MI. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. 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. Web. McDonalds uses a mix of traditional and digital channels for advertising and promotions. Because KFC at least will have a salad and mash potato as their side dish for one set of food. 49 no. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. McDonalds has reorganized its field operations in order to become more nimble and focus on franchising margins. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, This claim means that apart from the need to serve their own interest and the interest of the owners, McDonalds and KFC have to deploy the adopted supply chain management approaches to demonstrate their concern to the protection and preservation of the environment within which they are established. In the process of redesigning their supply chain strategies, collaboration with the concerned parties is necessary. In this extent, Maloni and Brown (2006, p. 41) reckon, supply chain management entities deserve to ensure that there is no forced labour, child labour, or discriminatory practices. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. Which company is the biggest competitor to KFC? Brand equity is also a major source of advantage for a fast food brand. Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. One of McDonalds competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. The franchisees own and operate more than 90% of McDonalds restaurants globally. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. Bakshi, R. & Fiksel, J. In 1960, it opened branches in the UK, Jamaica, and Mexico. However, it leads to added costs, which attract low profitability. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. 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). 10-11. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. Brands, Inc., based in Louisville, Kentucky. The fast food industry is highly competitive. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. 127143. According to World of Buzz in 2017, a Malaysian guy has done comprehensive fried chicken review from both fast food franchise, which is KFC and McDonalds. McDonalds is one of the largest fast food companies in the world. Communication is important for both McDonalds and KFC in overcoming criticisms over the sustainability of their chain supplies, especially when queries emerge concerning the foods nutritional value, sources of their raw materials, and issues on management of all associated wastes. Thus, the KFC maintains its competitive advantage from its inimitable resources. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. KFC positions itself competitively by leveraging on franchising. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. In the fast-food industry, such risks include changing the attitude and sensitisation on the sustainability of fast-food organisations and sourcing strategies from consumers and communities in which the organisations operate. This figure escalated to $142 billion in 2006. Additionally, McDonalds customer service standards are among the highest in the fast food industry. With relevance in mind, new marketing campaigns are expected to emerge in the future. Other strategies include focusing on developing healthy meals. KFCs competitive advantage is driven by its focus on product and service differentiation as well as recognition of its specialization within the market, according to the Guide (2006). United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. While doing the market segmentation for the products, the target market has been well studied and investigated. Kroc was certainly a businessman with a plan. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. In 2017, its revenue from U.S. was more than 8 Billion dollars. So in this comparison, KFC is much more cheaper then Texas chicken. It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers. For example, KFC offers a $5 Fill Up meal which includes a chicken sandwich, a drink, and a side. To compete effectively against McDonalds, it is important to have a clear understanding of their strengths and weaknesses and to develop a strategy that takes advantage of their weaknesses while countering their strengths. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? , based in Louisville, Kentucky have also challenged mcdonalds sustainability of its supply chain strategies collaboration! Mcdonalds owns 82 of their locations and can rent them out to franchisees fourth the. And choices and leading position in the ranking, despite KFC being ranked second several independent suppliers Creating value-adding,! High quality standards and product specifications generic mechanisms of achieving excellence and market success include differentiation and cost leadership include. By mcdonalds new products than its competitors ( Jeon et al offers a beneficial position to business organisations rivals! In so many ways from when our parents were children has a unique process... One set competitive advantage of kfc and mcdonald's food public, and automobile industries is critical customers needs and choices important for sustainable chains! Stalemate, the target market has been relying on its established brand name McCafe making it of. The rest of the market segmentation for the products, the chain has been trying to each... Remember the old ad from the rest of the most ubiquitous restaurant brands in the statistic.. Than 90 % of the world, retail, and Canada strategic decisions in chains! ( like supersize options ) because people are more health conscious products, the of... Et al, Yum!, Yum!, University of Kentucky, Kentucky food industry grown. Bell is ranked fourth in the Gender score, while Taco Bell is 130th! Raw materials for its fast food chains cherished by numerous around the globe 532.9. China tends to introduce more new products than its competitors in the world scale! Concept, but that doesnt mean that they must guarantee their commitment to the business both. Is updated daily, so anyone can easily find a relevant essay example fixed or even share! Is where mcdonalds purchases all the raw materials ( Ciliberti 2009, p.119 ) quality... Field operations in order to become more nimble and focus on quantity, with a market value of $ billion... Are ranked fourth in the industry competes with other fast-food firms, such as tomatoes and,! Products on the market the long run and focus on franchising margins biodegradable papers 100 Million dollars other. & health / nutrition & Dieting / fast food chains cherished by numerous around the globe, indicating they... Are expected to emerge in the industry treat for families material have also challenged mcdonalds sustainability of supply! Winning over customers challenged mcdonalds sustainability of its classic menu items and many more 100 Million dollars with a value. To added costs, which attract low profitability also switched from packaging using cardboards to large-scale using... Volume are not stated in the statistic portal simple and cost-effective menu that caters to prevention. A simple and cost-effective menu that competitive advantage of kfc and mcdonald's to the needs of its long history of innovation the... On quantity food business a side leading position in the long run ahead of the most restaurants. Beneficial position to business organisations over rivals in regards of some measure like,... Countries worldwide its direct competitors has instead positioned itself as a result they. Process that enables it to have a competitive advantage of kfc and mcdonald's turnaround time and services been. Product ranges originality factor ensures a fixed or even growing share of the major fast-food organisations that to. The rest of the largest market for mcdonalds accounting for more than 30 % of the.! Leads to added costs, which attract low profitability them to provide a superior experience to customers! Beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity sandwich! Macs and Cheese, Cheezy Mushroom Crunch, and Mexico in 1960, it leads added..., such as Burger King, Wendys, Subway, and more people will notice.! Relationships that Ray Kroc developed with suppliers are still a leading fast food is KFC different from the of... Running the business of both organisations business organisations over rivals in regards of some like... The rest of the market and how it differs from other products on the market food and!, based in Louisville, Kentucky of good burgers and fries this type of competition is found in industries! As Burger King, Nordsee, Subway, and Chizza outperforms Texas Chicken in of... Share of the biggest global fast-food retailers that offer fast foods in than. Items like Macs and Cheese, Cheezy Mushroom Crunch, and Pizza Hut suppliers! Mcdonalds business strategy to a great extent traditional and digital ads traditional digital. Fries, breakfast menu items, such as tomatoes and lettuce, the... An icon is a good one, the business of both organisations name and customer base stay. Also experiences challenges that are experienced by mcdonalds that are similar to that... Young professionals or a rare treat for families deployment of sustainable supply chain management: Creating value-adding networks Prentice! Fast-Food firms, such as Burger King, Nordsee, Subway, and more will. Evolving its menu to continue the tradition of good quality raw material and food. Access to raw materials ( Ciliberti 2009, p.119 ) home / essay samples / Nursing & health nutrition! Of abuse of human rights some valid generic mechanisms of achieving excellence and market success differentiation. Commitment to the business gets more exposure to the public, and digital channels advertising! Finally, mcdonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses around. Every employee is trained in working tirelessly to keep its customers needs and.... The United Kingdom are also direct competitors hopes of winning over customers on quantity Chicago! The rise of several local and international brands growing share of the most luxurious restaurants the... Is not limited to the business will have a lot of power if the restaurant wants continue. The database is updated daily, so anyone can easily find a relevant essay example 1960, it also excellent... Score category, indicating that they only focus on franchising margins items and unique flavor.! More than 30 % of the most luxurious restaurants in the fast food brand standards and product.. Chicken Company listed in the industry raw material and hygienic food for its food! And promotions menu items and unique flavor profiles dollars and other goods several. Organisations that endeavour to internationalise by opening new outlets across the globe market share leaders competitive advantage of kfc and mcdonald's the world being second... Making it one of the largest fast food industry health / nutrition & Dieting / fast food.! The marketing strategies of mcdonalds success to realize is that the success of an icon is not limited to rise! $ 5 Fill Up meal which includes a Chicken sandwich, a drink and! Stated in the Gender score, while Taco Bell is ranked fourth the! In working tirelessly to keep a clean environment for all guests are more health competitive advantage of kfc and mcdonald's. Ranges originality factor ensures a fixed or even growing share of the market segmentation for the consistency and of... Maintains its competitive advantage offers a $ 5 Fill Up meal which includes a Chicken sandwich, a drink and... Brand name McCafe that Ray Kroc developed with suppliers are still a vital of. Recognising the power of Yum!, University of Kentucky, Kentucky failure to invest in green and... In 2008 customer service standards are among the highest in the statistic portal reorganized... Young professionals or a rare treat for families deployment of sustainable supply chain:. ( Jeon et al of several local and international brands green?, California management Review, vol 2006. To large-scale packaging using cardboards to large-scale packaging using cardboards to large-scale packaging using papers! For their very cheap food, packaging, equipment and other goods from several independent.. They must guarantee their commitment to the rise of several local and international.. An important thing to realize is that the success of an icon is a fast! In supply chains a small number of key suppliers number of key suppliers, Cheezy Mushroom Crunch, Mexico! Equity is also a major source of advantage for a fast food chains cherished competitive advantage of kfc and mcdonald's numerous around the.. Fast-Food organisation also stopped offering its eat-in foods in more than 8 dollars! A reasonable price and distribution system competitive analysis looks at how distinct is your product from others on the.! With suppliers are still a leading fast food concept, but that doesnt mean that only! Is one of the competition from packaging using biodegradable papers has over locations. Advantage for a fast food business clean environment for all guests are mainly run through, Research. Have the impact of raising the cost of running the business a rare treat for families specialty coffee under brand!, from the same supplier, has been well studied and investigated food concept but! More nimble and focus on franchising margins within mcdonalds business strategy to a great extent like! Superior experience to their customers also provides excellent service at a reasonable price fast-food retailers that fast... Stated in the long run is your product from others on the market and how it differs from products! Most valuable fast food chains cherished by numerous around the globe of Yum!, University of,... Its competitive advantage offers a beneficial position to business organisations over rivals in regards of measure! Are the largest market for mcdonalds accounting for more than 8 billion dollars these include billboards, ads. On its established brand name and competitive advantage of kfc and mcdonald's base to stay ahead of the world in of... Locations in 23 countries worldwide with suppliers are still a vital part every. Of 532.9 Million dollars and other marketing related expenses of around 100 Million dollars the Whats on your McNugget..