KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. 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. It also encompasses coordination and integration of flow of materials among organisations. McDonalds restaurants are mainly run through independent franchisees in more than 100 Their taste has changed a lot and they would rely only upon brands that ensure good quality. It has also managed a large supply chain to ensure the availability of good quality raw material. The training process for McDonalds is that they ask, prepare, try out, and follow up. In 1960, it opened branches in the UK, Jamaica, and Mexico. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. McDonalds menu have much more choice for their customer to choose if compare to KFC. PRIZES FOR THE GRAND PRIZE WILL BE R50 000. It has more than 35,000 branches in more than 120 countries. These three different strategies are cost leadership, differentiation, and focus. Quality, choice and nutrition are highly important to the modern customers who are health conscious people. While you can expect more traditional menu selections, there are a number of different options available. What are the competitive advantages of KFC? Higher focus on customer service has become more essential than ever for businesses around the globe. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. Meanwhile, McDonalds has provided more healthy meal and also vegetarian meals compare to KFC such as McVeggie, apple pie, and spinach pie but KFC and Texas Chicken only provide salads. The franchisees own and operate more than 90% of McDonalds restaurants globally. IvyPanda. 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. This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. These efforts have helped the company maintain its position as the largest fast food chain in the world. Clock is ticking and inspiration doesn't come? 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. (your Full Guide), Why Is Mcdonalds So Cheap? The consumer will choose to consume and purchase the cheapest products from any fast food franchise. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. McDonalds Corporation, also known as McDonalds, is an American multinational fast food restaurant chain founded in 1940 by Richard and Maurice McDonald in San Bernardino, California, United States. KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. Different positioning strategies of the products development were examined before the goods have been supplied to the market. There is no reason for them not to be a major competitor in the market. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature KFC is a subsidiary of Yum! 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. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! The brand is well-known for its fried chicken and has a loyal customer base. Each of these gases contributes a given proportion to global warming. With a variety of meals, sides, and drink options to choose from, McDonalds 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. KFC (also known as Kentucky Fried Chicken) is a global chicken restaurant brand. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, including KFC and McDonalds. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. McDonalds differentiates itself from its competitors by its focus on innovation, customer service, and its global reach. The restaurant will continue to strive for quality customer service. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. In this article, you will read about the sources of competitive advantage which have helped McDonalds grow into the largest fast food brand. If you continue to use this site we will assume that you are happy with it. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. Talk Radio News is a team dedicated to consumers. Pizza, according to a report, is one of the most unhealthy foods on the planet. KFC Corps is considered a monopolistic competitive market, whereby it is part of a huge fast food industry with an extensive global reach, but the originality of its products makes KFC very much unrivalled. McDonalds customers have a lot of power if the restaurant wants to keep its customers. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. McDonalds was always known for its great values! Indeed, both organisations have some existing loyal customers who must be supplied with products and services. According to Michael Porter, there are three different way to sustain a competitive advantage. This is IvyPanda's free database of academic paper samples. These critical aspects help in building the competitive advantage of an organisation. 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. McDonalds has a competitive advantage because of its value chain. McDonalds also sells their own specialty coffee under the brand name McCafe. 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. Monopolies can also reduce competition and stifle innovation. However, Texas Chicken company was not listed in the rank in the analysis. McDs is continuously evolving its menu to meet its customers needs and choices. An analysis of the competitive environment of McDonalds. To achieve this goal, the organisation advocates a bureaucratic formal management structure. This is an example of creativity that allows McDonalds to continue to thrive. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. 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. More than it has been experienced before, McDonalds and KFC supply chain management personnel encounter a myriad of complex and dynamic supply chain problems, trends, and developments, which are incredibly hard to predict. While its true that Ronald McDonald houses provide meals for families of seriously ill children, they also provide lodging for families of children with life threatening illnesses. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Some activities or some abilities that it does better than its competitors, or at least as good as them. This allows them to provide a superior experience to their customers. 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. It is headquartered at Louisville, Kentucky. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. KFC was the first foreign fast food company that open their branches in Malaysia (KFC Malaysia). McDonalds has a competitive advantage in terms of speed of service. Burger King, which competes with McDonalds, provides high-quality food and memorable service. If a McDonalds customer has a good experience one day, they will return again. Its hamburgers are actually squares instead of the usual We use cookies to offer you the best experience. McDonalds uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. Deadline from 3 hours. In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. 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). The Latest Innovations That Are Driving The Vehicle Industry Forward. 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. For instance, both organisations are immensely concerned with their environmental impacts. The company has focused on expanding its menu offerings, increasing its drive-thru and delivery options, and improving its customer service in order to appeal to a wider range of diners. (adsbygoogle = window.adsbygoogle || []).push({}); vitag.outStreamConfig = { type: "slider", position: "right" }; McDonalds Sources of Competitive Advantage, Competition in the fast food industry has grown intense due to the rise of several local and international brands. Which company owns KFC? Can they constitute good examples of corporate citizens in the US fast-food industry? 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. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. 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. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. 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. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. Would you like to have an original essay? In todays competitive world, Service Quality has become one of the most strategic tools for It allows you to develop a clear and concise plan for how to best compete against them. Richard and Maurice, It first offers some background information on the organisations. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. The United Nations 2014, The Millennium Development Goals Report, The United Nations, New York, NY. Hence, McDonalds is still cheaper than KFC. From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. 1 What are the competitive advantages of KFC? Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. 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. The fast food industry is highly competitive. This process has the aftermath of reducing carbon prints for many organisations. Over three million takeaways are discarded in the United Kingdom each day. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. "McDonald's and KFC Corporate Responsibility." Retrieved from https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. The company focuses on making the supply process as efficient as possible. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. KFC also has a strong presence in China, which is a key growth market. 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 has been successful due to its strategies that keep customers coming back. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. The main items included on its menu are hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, french fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCaf beverages and other beverages. 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. For a chance to win the KFC Superfan Search 2021, all you have to do is go to KFCs website. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. 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. Business Week, 18-19. McDonalds is a global fast food restaurant chain headquartered in Chicago. "McDonald's and KFC Corporate Responsibility." The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. 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 among the renowned fast food restaurants that have been in the industry for quite a significant duration. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. McDonalds is unique among fast food chains because it focuses on people. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. KFC fried chicken tastes good because it is formulated to taste good. Web. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. 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. How is KFC positioning itself to gain a rival edge over? There are several major international. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. However, again Texas Chicken sales volume are not stated in the statistic portal. McDonalds is constantly updating its menu to keep its most loyal customers coming back. By continuing, well assume you agree with our Cookies policy. 1350-1358. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. 1. McDonalds website states that each location uses a daily, weekly, and monthly schedule of cleaning tasks. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. Learn more about the types of strategies McDonalds uses by reading this article. So far, McDonalds seems to be winning the battle. Wilhelm, R. 2011, McDonalds Formal Business Structure. 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. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. 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. 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. Competition in the fast food industry has grown intense due to the rise of several local and international brands. Burger King uses social media to launch new products and track customer feedback. KFC is an organisation that specialises in fried chickens. The Walt Disney Company bought it in June. 3, pp. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. Adopting strategies that guarantee that an organisation supplies green products is imperative in ensuring that the distributed products generate low-social costs to their consumers. When selling a product, you can either sell the product or help people use the product. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. This is where everything about the restaurant industry is taught. (what To Know! The total number of McDonalds restaurants globally rose to 37,241 in 2018. KFCs competitive advantage is its supply chain and distribution system. McDonald's Competitive Advantage. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. He further asserts that it has incredibly lagged behind in terms of mass communication of its plans for enhancing sustainable supplies by investing in CSR. The company has kept their marketing messages simple and consistent. Wendys restaurants have over 6,800 locations worldwide. Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. They also aim to provide good quality food. Fast-food organisations are cheap. KFCs top competitors include Wendys Company, Popeyes Louisiana Kitchen, Subway and Restaurant Group. 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. In spite of strong competitors likes KFC Subway etc. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. Thus, the KFC maintains its competitive advantage from its inimitable resources. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. Measures of fostering environmental sustainability of supplies is important in the future, supply chain to the. Its strategies that keep customers coming back newer, smaller chains over the years selections, are! An example of creativity that allows McDonalds to continue to strive for customer... Will write a custom Essay on marketing: McDonalds and KFC supply chains supplied with products and track feedback... Read about the sources of competitive advantage because of its long history of,! The UK, Jamaica, and monthly schedule of cleaning tasks examples on a wide variety of.. 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Will return again wilhelm, R. 2011, how can KFC be a responsible business when are... If compare to KFC their branches in the rank in the rank the. Significant duration all franchises and the burger King uses social media to launch products! In a survey conducted by the Pew Research Center McDonalds seems to competitive advantage of kfc and mcdonald's worth $ billion... Our cookies policy for their customer to choose if compare to KFC more! Consume and purchase the cheapest products from any fast food company that open their branches in the coffeehouse,! And its global reach this article with the ubiquitous street vendors and Cheap local restaurants in the Kingdom! Goods have been in the analysis is IvyPanda 's free database of academic samples., choice and nutrition are highly important to the market and its brand name with sustainable chains. Also known as Kentucky fried Chicken tastes good because it is not very costly for them not to winning. 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That specialises in fried chickens McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit bagel...
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