competitive advantage of kfc and mcdonald's

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. However, apart from food, it has all focused on customer service. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. This allows them to provide a superior experience to their customers. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. 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. IvyPanda. In a bid to present its supply chain as sustainable, KFC now endeavours to engage in training and development programmes in addition to apprentice programmes on sustainable supply chain (Idle 2011). However, Idle (2011) notes that KFC has a long way to go in the implementation of its social corporate responsibility commitments. One major source of competitive advantage for McD is its extensive global presence. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. The product ranges originality factor ensures a fixed or even growing share of the market. McDonalds and KFC managers remain susceptible to challenges of enhancing sustainability in their supply chains while doing their businesses in a modern globalised business arena. Therefore, the business will increase. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. It then discusses the subject of sustainability in their chain supplies within the fast-food industry. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. 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. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. From the above efforts of McDonalds and KFC to engage in sustainable supply chains, it is evident that they both deploy similar strategies of facilitating sustainability in the modern supply chains. They have to establish mechanisms of enhancing corporate governance. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. ), Mcdonalds Vs Subway (price, Quality + Whos Better), Mcdonalds Vs Hungry Jacks (quality, Service, Price + More), Does Mcdonalds Have All-day Breakfast? McDonalds Business Strategy and Competitive Advantage. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. 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 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. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. 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. If youre the first to try something new or to address the spotted need, youll get better results. She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. 1350-1358. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. KFC China tends to introduce more new products than its competitors (Jeon et al. In this study, target population is the young consumers (under 30) in 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. The company has a strong financial position and Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. This is where everything about the restaurant industry is taught. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. McDonalds is the leading and one of the most popular fast food brands of the world. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. McDonalds is unique among fast food chains because it focuses on people. For a chance to win the KFC Superfan Search 2021, all you have to do is go to KFCs website. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. KFC positions itself competitively by leveraging on franchising. What are the competitive advantages of KFC? McDonalds has more locations than KFC. 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. Burger Kings success can be attributed to one of its primary focuses on value for money. 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. The fillet-o-fish is a popular menu item. There is no reason for them not to be a major competitor in the market. Next, is the their Menu. The marketing strategies of McDonalds and KFC are very different. A large and varied product range is meant to cater to the taste and needs of various groups of customers. Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. McDonalds is famous for its cheap, fast meals and their customers appreciate it. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. KFC and Taco Bell are both competitors on a number of levels. 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. All of these have been successful for the company. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). McDonalds Corporation (NYSE: MCD) and Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY) have agreed to a new, long-term global strategic partnership, evolving their existing local agreements to provide McDonalds customers and franchisees with the convenience and value of McDelivery in markets across the world. The goal was to initiate a programme for phasing out the use of polystyrene food packaging to raise the number of recycled food boxes and containers. ensure the integrity of our platform while keeping your private information safe. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. "McDonald's and KFC Corporate Responsibility." Proficient in: Nutrition & Dieting, Corporation. Another factor that contributes to customer selection of one company over another is the price. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. Can they constitute good examples of corporate citizens in the US fast-food industry? No plagiarism guarantee. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. For instance, operating in the UK market requires McDonalds and KFC to comply with the recently established legislation on minimum wage together with another ruling that requires firms to recycle their wastes as a measure of being environmentally green. food. While these fast-food giants have a KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. Not only that McDonalds have a lot of branches in Malaysia. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. While McDs mainly serves a uniform menu globally with no substantial variations except for small regional ones, its menu is still quite large and diversified. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Originally in 1962, no military base in the United States had drive thrus at restaurants. McDonalds has been criticized for its advertising to children. Web. Thirdly, is their ranking and sales volume. 67-71. 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). Quality, choice and nutrition are highly important to the modern customers who are health conscious people. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. 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. KFC recognises the level of concern by the media and consumers over its foods nutritional value, especially in a market that is dominated by criticism of potential threats of obesity. Yum Brands owns Taco Bell, KFC, and Pizza Hut. Based on these assertions, the paper has regarded the embracement of concepts of CSR as one of the ways of ensuring that supply chains for both organisations remain sustainable and competitive. They often result in excessive food wastes and accumulation of packaging waste. 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. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. ), What Time Does Mcdonalds Serve Lunch? Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. How does McDonalds operate in a monopolistic monopolistic market? The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. Web. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. After a pandemic, the fast-food industry will be unable to survive for at least a year. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. 14 no. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? Subway has more than 37,000 locations around the world and is one of the largest restaurant chains in the world. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. 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. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. The joint venture that has been going on for over fifty years. McDonalds is a favorite fast-food for most Americans. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. 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). An entrepreneur should focus on his/her business to the exclusion of any other goals. 35-52. You are free to use it for research and reference purposes in order to write your own paper; however, you It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. An analysis of the competitive environment of McDonalds. 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. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. Subway, the worlds largest restaurant chain in terms of size, has seen sales fall since 2012. The Wendys Company is a company engaged in the operating, developing, and franchising a system of quick-service restaurants. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. Which company owns KFC? McDonalds menu have much more choice for their customer to choose if compare to KFC. 8 Why is KFC the best fast food restaurant? An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. 48 no. Because of their lower volume of sales, they are a better company than their competitors. There are several major international. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. McDonalds has added their menu to continue the tradition of good burgers and fries. The company has kept their marketing messages simple and consistent. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. It also encompasses coordination and integration of flow of materials among organisations. Their taste has changed a lot and they would rely only upon brands that ensure good quality. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. Competition in the fast food industry has grown intense due to the rise of several local and international brands. It is an amazing service that is very much needed. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. 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