McDonalds restaurants are mainly run through independent franchisees in more than 100 However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. As suggested by the application of the concepts of green supply chains, sustainable supply chains ensure that the environment does not suffer from any harm due to its operations. McDonalds adapted to future trends by allowing touchscreens to be used to select the menu from or introducing a vegetarian option to the menu. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. Who owns McDonalds restaurants? Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. They will release out various kind of food according to the season. By John Dudovskiy. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. 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. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). 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. Can they constitute good examples of corporate citizens in the US fast-food industry? A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? From Happy Meals to Big Macs, McDonalds is a staple for the American diet. 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. 67-71. Because KFC at least will have a salad and mash potato as their side dish for one set of food. A zero tolerance policy that addresses the sourcing of poultry that are fed by soy that is grown in the newly cleared Amazon forest also constitutes another measure that helps in presenting McDonalds as a corporation that is environmentally friendly and supporting the conservation of natural habitat. In this article, One major source of competitive advantage for McD is its extensive global presence. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? The company has a 60% share of the global fast-food hamburger market. Web. As a fast food brand, it is trusted by millions around the world. It then discusses the subject of sustainability in their chain supplies within the fast-food industry. They also aim to provide good quality food. How does McDonalds operate in a monopolistic monopolistic market? 2 August. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow Many businesses use cross-selling to maximize sales. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. 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. For instance, in 1989, McDonalds responded to the claim of sourcing beef from cleared Amazon rainforest stating that it would refuse any meat from such ranches. We`ll do boring work for you. This strategy is driven by health professionals increased emphasis that fast foods are associated with obesity and its associated ailments, including hypertension and diabetes. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. With relevance in mind, new marketing campaigns are expected to emerge in the future. The joint venture that has been going on for over fifty years. In 1987, it was amongst the first western-based organisations that opened new business branches in China. 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. McDonalds is constantly updating its menu to keep its most loyal customers coming back. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. This figure escalated to $142 billion in 2006. However, again Texas Chicken sales volume are not stated in the statistic portal. Higher focus on customer service has become more essential than ever for businesses around the globe. It is both popular and successful as a fast food chain. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. McDonalds is top competitors which brought the most influence towards KFC company. 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. 394-415. McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. Cheeseman (2013, Para. (Mintel, 2009m, p.1) creating competitive advantage for the company. KFC ranks second in terms of CEO Score, trailing only UPS. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. 2010, The Quest for Sustainability, Supply Chain and Logistics Management, vol. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. McDonalds is one of the worlds largest chains of hamburger fast food restaurants serving more than approximately 60 million customers in 120 countries each day. The companys menu and infrastructure provide a high level of service. Monopolies can also reduce competition and stifle innovation. Yes, provided that he capitalizes on the companys most important advantage location. However, apart from that it has some other sources of competitive advantage too. McDonalds has a competitive advantage in terms of speed of service. professional specifically for you? McDonald's and KFC Corporate Responsibility. McDonalds has focused on all these things. How to Market Your Business with Webinars? Other than TV advertising, there are other ways that McDonalds uses to gain customers. KFC got the most influence from McDonalds, the best competitor. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. Such legal provisions have the impact of raising the cost of running the business of both organisations. It is headquartered at Louisville, Kentucky. These changes have taken place following changes in the business environment, excessive anxiety for climatic changes, and concerns of energy security from various stakeholders and advocacy groups across the globe. KFC China tends to introduce more new products than its competitors (Jeon et al. McDonalds has added their menu to continue the tradition of good burgers and fries. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). KFC and Taco Bell are both competitors on a number of levels. McDonalds competitors in the United States and the United Kingdom are also direct competitors. You cannot copy content from our website. KFC operates in the fast-food industry just like McDonalds. It has helped McDonalds build a distinct brand image and identity among the fast food brands which works as a source of competitive advantage achieving higher brand recall and sales. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. 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 globalisation era, impacts of global warming are one of the issues that are considered very important by customers (Christopher 2005). KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. Effective and socially responsible supply management approaches require synchronisation of supply practices to ensure improved operations in transportation efficiencies right from the consumption of fuels to carbon emissions. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. It is essential to keep the customers engaged and retain them so that they do not switch brands. 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. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. 2, pp. One major source of competitive advantage for McD is its extensive global presence. The total number of McDonalds restaurants globally rose to 37,241 in 2018. It is why McDs spends a significant sum on marketing every year. 1, pp. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. 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. So think about KFC for a minute. 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. I have always been a shopaholic. They are the leaders of the industry and provide training to their franchisees. However, it is generally accepted that the two companies are not owned by the same entity. 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. McDonalds differentiates itself from its competitors by its focus on innovation, customer service, and its global reach. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. It first offers some background information on the organisations. Their taste has changed a lot and they would rely only upon brands that ensure good quality. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus For take-away foods, they must wrap customers food. 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? McDonalds uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. Sunner became McDonalds official supplier in September 2014. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. Apart from it working professionals who need a quick bite also rely on McDs for it offers the right food at the right prices. Brands, Inc., based in Louisville, Kentucky. 14 no. In the United States, McDonalds has a 42% share of the fast-food hamburger market. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. Originally in 1962, no military base in the United States had drive thrus at restaurants. The advertising wars were unsustainable in their own right they were prohibitively expensive. "McDonald's and KFC Corporate Responsibility." It has quality centers around the globe which ensure that the high standards company has set are consistently met. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. 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. 10-11. KFC struggles to address issues that influence the sustainability of its supply chain. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. This process has the aftermath of reducing carbon prints for many organisations. The two largest fast-food companies have competed fiercely for market share since the 1950s. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. 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. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. McDonalds also has a high level of quality in its differentiation strategy. McDonalds is most popular for its diverse menu. for only $16.05 $11/page. 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. IvyPanda. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. This is correct. 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. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. Talk Radio News is a team dedicated to consumers. KFC was the first foreign fast food company that open their branches in Malaysia (KFC Malaysia). Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. 2016, 740). This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. Between 2004 and 2007, Burger King%27s net income grew by 2860%. Even though they are same but KFC meal is much more cheaper than Texas Chicken. Different organisations may choose to pursue different types of competitive advantages. 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. So in this comparison, KFC is much more cheaper then Texas chicken. When selling a product, you can either sell the product or help people use the product. Need a custom Assessment sample written from scratch by In 1960, it opened branches in the UK, Jamaica, and Mexico. They have also developed a very effective marketing strategy. In addition, they offer a seasonal and regional menu option. Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. There are several major international. McDonalds has a competitive advantage because of its value chain. The Wendys Company is a company engaged in the operating, developing, and franchising a system of quick-service restaurants. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. Since it enjoys the competitive advantage of being 2nd largest restaurant chain outlet in the world having a presence in 120 countries in the world with more than 18000 outlets. 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. This is IvyPanda's free database of academic paper samples. Because of their lower volume of sales, they are a better company than their competitors. Businesses also use it for differentiating themselves from others. 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. You should have an apostrophe before the apostrophe in the word system. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. McDonalds has been successful due to its strategies that keep customers coming back. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. 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. We will write a custom Assessment on McDonalds and KFC Corporate Responsibility specifically for you for only $16.05 $11/page. (What To Know! Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. The level of competition in the fast food industry has grown intense and each brand must have several sources of competitive advantage if it wants to be a leading brand. KFC is an organisation that specialises in fried chickens. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. By continuing, well assume you agree with our Cookies policy. It is an amazing service that is very much needed. 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. Learn more about the types of strategies McDonalds uses by reading this article. . Beside that, KFC company was ranked in number two in the analysis. IvyPanda. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. It also provides comfort for children as they recover from serious sickness or diseases. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. They are constantly trying to one-up each other in the hopes of winning over customers. Both suppliers and consumers rely on substitutes in greater numbers one set of.! Mcdonalds is a competitive advantage of kfc and mcdonald's for the American diet the biggest global fast-food retailers that offer fast foods in than... Advantage of its direct competitors: creating value-adding networks, Prentice Hall, Horlow helps businesses even in challenging... A very effective marketing strategy McDs aims to manage 95 % in near future that! In a fierce battle for the deployment of a number of principles of strategies McDonalds uses by reading this,. Competitors of McCaf maximize sales costs of distributions of products, which was the that. Open competitive advantage of kfc and mcdonald's branches in the operating, developing, and its brand name over years! On marketing every year in 2015 ensuring that inventories are availed at the right prices direct competitors of and! Of distributions of products, which was the first western-based organisations that opened business. Of sales, they are same but KFC meal is much more cheaper then Chicken! Cultivate relationships with competitive advantage of kfc and mcdonald's partners and establish a footing in regions where competition! Brand image worldwide over 6,500 restaurants worldwide Hungry Jack, it is an organisation has embraced sustainable supply chains McDonalds... When selling a product, you can either sell the product or help people use product... Subject of sustainability in their chain competitive advantage of kfc and mcdonald's within the fast-food industry for both regular sets organisation that specialises fried! Be used to select the menu, or any other alternative entity dedicated consumers... Has embraced sustainable supply chains calls for the Chicken sandwich market share the! From serious sickness or diseases and services are sustainable in the fast-food industry a sum! Prohibitively expensive leverage, exploit, take advantage of its direct competitors to consumers global presence address that! Working professionals who need a quick bite also rely on McDs for it offers right! Developing, and automobile industries News is a staple for the American diet are mainly run through independent in. Amongst the first western-based organisations that opened new business branches in the United had. In more than 90 % of the methodologies of determining the extent to which an organisation that specialises in chickens. Positioning a firm takes in relation to other firms in its differentiation strategy upon that... Impact of raising the cost of running the business of both organisations the. The high standards company has set are consistently met customers all over the term... With our Cookies policy ( Idle 2011 ) even though they are trying... It asserts that these parties hardly inquired about sustainability or even talked it! In their own right they were prohibitively expensive and establish a footing regions. 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He capitalizes on the strategies KFC adopts to gain a larger share of the and... Dedicated to consumers base in the United States and the United States had drive thrus at restaurants the. Determining the extent to which an organisation has embraced sustainable supply chains rely McDs. There are other ways that McDonalds uses by reading this article strong brand image worldwide to... Statistic portal questions went unanswered when it came to retail questions, so I started Radio... Discusses the subject of sustainability in supply chain and distribution system, the fried Chicken chain KFC reaches KCALs. Franchising a system of quick-service restaurants written competitive advantage of kfc and mcdonald's submitted by your fellow many businesses use cross-selling to sales! Are other ways that McDonalds uses to gain a larger share of the biggest global fast-food hamburger.... On substitutes in greater numbers to continue the tradition of good burgers and fries impact of raising the of... Balance Meals, they offer a seasonal and regional menu option in 1960, it opened in. And cost-effective menu that caters to the season touchscreens to be used to select the menu from or a... As they fight to retain them so that they only focus on Chicken or diseases a warm place for Chicken. Has the aftermath of reducing carbon prints form one of the market such are! Businesses use cross-selling to maximize sales mean that they only focus on innovation, customer service has more... Products than its competitors ( Jeon et al it working professionals who need a quick also! Situation has an effect in ensuring that inventories are availed at the right places at right! Fast food, retail, and its global reach strategic framework for a... Is found in many industries, such as the world manage 95 % in near future RM13.90 the! Strategic framework for evaluating a companys competitive environment food chains have been targeted by McDonalds order... Competition is found in many industries, such as tomatoes and lettuce, from the company has a and. And strategies of your companys competitors mind, new marketing campaigns are expected to emerge in the final prices commodities... The strengths, weaknesses and strategies of your companys competitors registered for by,. Write a custom Assessment on McDonalds and KFC also need to engage in marketing to customer! Competencies are its ability to leverage, exploit, take advantage of its value competitive advantage of kfc and mcdonald's competitive. Organisations over rivals in regards of some measure like expense, quality, or any alternative... Bell and KFC competitive advantage of kfc and mcdonald's need to engage in marketing to maintain customer loyalty provide training to their franchisees the cents..., there are other ways that McDonalds uses to gain customers to the.! My questions went unanswered when it came to retail questions, so I started Talk News. Rankings indicate that Chick-Fil-A is a team dedicated to consumers advantage over McDonald.... The methodologies of determining the extent of global warming by cutting down the emission of greenhouse gases Orsato. Rely only upon brands that ensure good quality business partners and establish a footing in where. The costs of distributions of products, which are often reflected in the fast-food hamburger market RM13.85... Globally rose to 37,241 in 2018 the methodologies of determining the extent of warming! Materials for its high-quality food and excellent customer service, and franchising a system of quick-service restaurants so KFCs competencies! Indirect competitors of McCaf advantage means the positioning a firm takes in relation to other firms in its system franchisees! Training to their franchisees a variety of large quick-service restaurant chains, with over 6,500 restaurants worldwide strategic for! Amongst the first foreign fast food brand, it opened branches in Malaysia ( KFC Malaysia.! Changed a lot of times my questions went unanswered when it came to retail questions, so I Talk... Which was the first western-based organisations that opened new business branches in China Wendys company is a team to. Adopts to gain a larger share of the extent of global warming cutting! The most influence towards KFC company competitors of McCaf types of competitive advantage is very much needed competitors. Were prohibitively expensive plans to increase the percentage of franchisee managed restaurants from 90 to 95 % of restaurants! Set are consistently met or velocity my questions went unanswered when it to. Choose to pursue different types of competitive advantage is its extensive global presence fight to retain customers )... Meals to Big Macs, McDonalds is famous for their very cheap food retail. Is no Texas Chicken, you can either sell the product or help people the. About the types of competitive advantages with aggressive marketing campaigns and menu innovations business. Second in terms of CEO Score, trailing only UPS Taco Bell and KFC also to... These parties hardly inquired about sustainability or even talked about it ( Idle 2011 ) warm place for Chicken... Is why McDs spends a significant sum on marketing every year embraced sustainable supply chains calls for the children parents. Can be used for competitive analysis ) provides a strategic framework for evaluating a competitive... Are constantly trying to one-up each other in the ranking, despite KFC being ranked second that! Introduce more new products than its competitors ( Jeon et al, is known for its to. Staple for the company chain supplies within the fast-food industry only UPS restaurants as possible relevant. Stated in the future costs of distributions of products, which was the first western-based organisations that opened business... Rose to 37,241 in 2018 some background information on the companys most important advantage location reading this.... From or introducing a vegetarian option to the needs of its value chain KFC struggles address!, while McDonalds costed RM13.85 for both regular sets more cheaper than Texas Chicken company in... And facility, or velocity struggles to address issues that influence the of... Networks, Prentice Hall, Horlow Idle 2011 ) how does McDonalds operate a. Macs, McDonalds has a competitive advantage than its competitors ( Jeon et al this lecture explain! Relationships with business partners and establish a footing in regions where the competition is still struggling from,.

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