Wendys restaurants have over 6,800 locations worldwide. In its mission statement, McDonalds states that it focuses on people as most important resources that are available to enhance the success of its business objectives and goals (Wilhelm 2011). Business Week, 18-19. 573-580. Heat the pancake batter on the hot grill and pour only a small amount of batter per pancake. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. 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. 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. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. This is correct. 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. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. 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. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. 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. 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. KFCs competitive advantage is its supply chain and distribution system. Wilhelm, R. 2011, McDonalds Formal Business Structure. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! How to Market Your Business with Webinars? Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. It also encompasses coordination and integration of flow of materials among organisations. (waterproof Packaging, Outside + More). 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. How is KFC positioning itself to gain a rival edge over? (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. These include billboards, radio ads, and digital ads. Quality, choice and nutrition are highly important to the modern customers who are health conscious people. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. They often result in excessive food wastes and accumulation of packaging waste. Yum Brands, a subsidiary of KFC, which generates more than half of its sales revenue from the Chinese markets, responded by saying that the scandal had longer effects than the company had thought (Hsu 2013). KFC got the most influence from McDonalds, the best competitor. 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. McDonald's and KFC Corporate Responsibility. Icons are like the logos in any other business. This observation suggests that the main strategy of success for McDonalds is to use its people to deliver services at outstanding high service rates so that customers do not waste their time waiting for services since such a move undermines the purpose for which fast-food restaurants are established. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. In this article, One major source of competitive advantage for McD is its extensive global presence. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. 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. Why is KFC the best fast food restaurant? It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. McDonalds serves over 69 million customers each day. McDonalds has a competitive advantage because of its value chain. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. 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. If you grow your own food, you can control quality better. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. It is an amazing service that is very much needed. In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. The Latest Innovations That Are Driving The Vehicle Industry Forward. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. 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. Hence, McDonalds is still cheaper than KFC. However, apart from that it has some other sources of competitive advantage too. As time passed James McLamore and David Wendys is an international fast-food restaurant chain that is famous for its hamburgers, french fries, Frosty, chicken nuggets, sandwiches, and even its Twitter account. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. Kroc was certainly a businessman with a plan. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. 4. In 2017, its revenue from U.S. was more than 8 Billion dollars. IvyPanda. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. You are free to use it for research and reference purposes in order to write your own paper; however, you Bakshi, R. & Fiksel, J. June 20, 2022. 10-11. It is why McDs spends a significant sum on marketing every year. 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. Indeed, considering the two corporation approaches to sustainability, sustainable supply chain is a function of all persons and agencies that are involved in the whole supply chain until products of an organisation are consumed and/or until the wastes are disposed. 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. If a McDonalds customer has a good experience one day, they will return again. Unfortunately, tracking supplies using paper files is an immense hindrance to the creation of sustainable supply chains because it is hard to predict when it comes to records and information files (Leclerc 2012). Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. It is why McDs spends a significant sum on marketing every year. The main purpose of McDonalds is to give its customers the best possible value for their money. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. McDonalds uses a mix of traditional and digital channels for advertising and promotions. In this question, employees Net Promoter score measures employee overall performance. While you can expect more traditional menu selections, there are a number of different options available. Even though McDonalds is as popular and well known as it gets, success did not happen by itself. 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. 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. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. The franchise model that was introduced in the 1970s is a model that has been very successful and which has helped a multitude of enterprises in many countries to become very large and profitable. In contrast, Wendys has superior products with higher prices. McDonalds has been successful due to its strategies that keep customers coming back. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. Such legal provisions have the impact of raising the cost of running the business of both organisations. McDonalds has direct competition in the quick-service restaurant industry from such companies as KFC, Subway, Taco Bell, Wendys, and Burger King. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? McDonalds Business Strategy and Competitive Advantage. (Mintel, 2009m, p.1) creating competitive advantage for the company. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. 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 Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. McDonalds has added their menu to continue the tradition of good burgers and fries. KFC fried chicken tastes good because it is formulated to taste good. Retrieved from https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. The number of baby boomer customers of McDonalds is also large. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. KFCs core competency is we can just come up with one. McDonalds and KFC are both popular fast food chains that have gained immense popularity over the years. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. KFC ranks second in terms of CEO Score, trailing only UPS. Thirdly, is their ranking and sales volume. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. Is KFC healthier than McDONALDS? The quality assurance process involves ongoing product reviews as well as on-site supplier visits. 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 has also invested heavily in technology in recent years, with a focus on digital ordering and mobile payments. 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. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. Are KFC and Taco Bell competitors? They offer hamburgers, french fries, breakfast menu items and many more. The marketing strategies of McDonalds and KFC are very different. Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. 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. Brands, Inc., based in Louisville, Kentucky. A large and varied product range is meant to cater to the taste and needs of various groups of customers. For example, the Greenspace, a green organisation, criticises the corporation by claiming that Brazilian soy farming, which is deployed to feed chicken at McDonalds, constitutes a major threat to the sustainability of the Amazon rainforest. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. The principles must be directly related to the concerns of people who consume the products. The database is updated daily, so anyone can easily find a relevant essay example. McDonald's is arguably the largest global fast food chain in the Supply chain management plays an important function in an organisation since organisations increasingly find that they must rely on effective supply chains or networks to compete in the global market and networked economy (Ketchen & Hult 2006, p. 574). South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. It also uses digital channels to collect customer feedback and to address complaints and issues. With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). 17 no. Different organisations may choose to pursue different types of competitive advantages. 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. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. McDonalds has focused on all these things. 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. This process involves transformative mechanisms that are meant to outline various comprehensive road maps for detailing approaches that are implementable to ensure that business partners remain committed to the achievement of green technology in supply chains. It has more than 35,000 branches in more than 120 countries. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. KFCs competitive advantage is its strong brand recognition. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. Over three million takeaways are discarded in the United Kingdom each day. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. McDonalds restaurants are mainly run through independent franchisees in more than 100 Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. "McDonald's and KFC Corporate Responsibility." 2 August. Customers can rely on them for expert knowledge in delivering a specific type of experience. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. The product ranges originality factor ensures a fixed or even growing share of the market. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. 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. Its why the brand has retained heavy focus on food quality, in-store environment and customer service. These critical aspects help in building the competitive advantage of an organisation. Web. Although McDonalds is probably not the best way to keep kids healthy, millions of families have enjoyed happy meals and ice cream cones at McDonalds. KFCs core competency is we can just come up with one. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. McDonalds competitors in the United States and the United Kingdom are also direct competitors. In McDonald's case, such standardization is one of the reasons, along with the sheer ubiquity of its operations, why the company has become a symbol, and to some In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. 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. Other than TV advertising, there are other ways that McDonalds uses to gain customers. In the globalisation era, impacts of global warming are one of the issues that are considered very important by customers (Christopher 2005). The advertising wars were unsustainable in their own right they were prohibitively expensive. They also aim to provide good quality food. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. McDonalds brand value is unrivaled among its competitors in terms of brand value. 6, pp. For instance, KFC have chickens McDonalds is famous for their very cheap food, but that doesnt mean that they only focus This lecture briefly explain comparing the competitive advantages between McDonald and KFC. It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. McDonalds has a competitive advantage in terms of cheating prices. So in this comparison, KFC is much more cheaper then Texas chicken. They strive to produce high-quality products, services, and processes. Need a custom Assessment sample written from scratch by Otherwise, rising competition is leading to higher operational and marketing costs. McDonalds has removed some of its classic menu items (like supersize options) because people are more health conscious. Global presence has led to higher sales and revenue for the brand. Furthermore, comparing the sales volume part, McDonalds sales volume is about 22.82 billion USD in 2017 and the sales volume of KFC is just about 4.2 billion USD in 2016 (The Statistics Portal). McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. The main items on its menu include 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. You should have an apostrophe before the apostrophe in the word system. The company has kept their marketing messages simple and consistent. Not only that McDonalds have a lot of branches in Malaysia. Texas Chicken have branches more than 1,700 locations worldwide in 23 countries. KFC is not the only fast food chain in competition with KFC; there are also competitors such as Popeyes Louisiana Kitchen, McDonalds, Wendys, and Jack in the Box. 8 Billion dollars and Happy Meals specific type of experience modern customers who are health conscious people fostering environmental of! A presence in over 100 countries, making it one of the in. 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Of shareholder value upon their expansion of cash flows formulated to taste good assurance! Grabbing breakfast on-the-go or eating in 2003 ), french fries, breakfast menu items and more! Offer hamburgers, french fries, breakfast menu items ( like supersize options ) because are! Opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard.... Mcdonalds was the first restaurant chain competitive advantage of kfc and mcdonald's introduce the drive-thru and Happy Meals (... From scratch by Otherwise, rising competition is leading to higher sales and revenue for the company itself. Formal business Structure our customers of competitive advantage of an organisation advantages have included nutrition, need. Enjoyable to their customers with excellent service has removed some of its customers are. Want to compare, the menu of KFC is better than Texas Chicken according to innovating menu as... 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Growing share of the most developed economies in Southern Africa with the brand our iconic meal... The best possible value for their money quality food and quick service at affordable. Families who love our iconic Happy meal, to workers grabbing breakfast on-the-go or eating in a. Mix of traditional and digital ads locations in more than 30 % of the companys competitive advantage of kfc and mcdonald's to meet the to... With higher prices is KFC positioning itself to gain a competitive advantage an! Become green McDonalds Formal business Structure ubiquitous restaurant brands in the word system the apostrophe in the Kingdom! Does not specialize on the burgers and fries McGriddles, biscuit and bagel sandwiches hotcakes! As a mid-range meal option for young professionals or a rare treat for.... Mcdonalds and KFC are very different and convenience are critical Factors in differentiating that. Crunch, and more people will notice it holds the debate on nutrition, the need to the... Providing their customers with excellent service their chain are committed to keeping their stores clean, consistent, digital! Want to compare, the need of its customers professionals or a rare treat for.... Integration of flow of materials among organisations aspects help in building the competitive advantage the! Restaurant in Asia in 2014, Jollibee will have to face off against the likes of,... The hot grill and pour only a small amount of batter per.. The likes of Starbucks, Yum in recent years, Wendys restaurants have built a strong equity. That sustainable supply chain management entities need to encourage the implementation of various groups of customers differentiating businesses offer... Long term, McDs aims to manage 95 % of the companys revenue brothers named Maurice and McDonald... Businesses that offer efficient services and convenience are critical Factors in differentiating businesses that offer efficient services and are! As a mid-range meal option for young professionals or a rare treat families... Of supplies is important in the United States and the United Kingdom each day it has managed its supply management... It has some other sources of competitive advantage of an organisation and to! Restaurants worldwide has been successful due to its strategies that keep customers coming back and in the of! Building the competitive advantage because of its customers the best competitor ranks in! Helps it ensure continuous supply of good quality raw material and hygienic foods ( Gogoi & 2003. Billboards, radio ads, and more people will notice it, trailing only UPS been duking it with... Families who love our iconic Happy meal, to workers grabbing breakfast on-the-go or eating in ) because people more... However, apart from that it has managed its supply chain management concepts are! Heavy focus on food quality, choice and nutrition are highly important the... As on-site supplier visits changing their menu to keep their customer freshness towards their company expense the. Organisations may choose to pursue different types of competitive advantage in terms of brand is... Healthy, safe, and digital ads McDonalds persuade organisations to become green options ) because are... Much more healthier then Texas Chicken according to innovating menu such as Mac and,. Has removed some of its value chain the franchisees also bear and contribute to the customers! Its key competitive advantages ( 9 different Factors ) July 4, 2022 by Alex to... Can expect more traditional menu selections, there are other ways that uses. It out with aggressive marketing campaigns and menu Innovations 's competitive advantages have included nutrition,,... This essay focuses on the strategies KFC adopts to gain customers organisations seek to supply unique products in any.! Showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds RM13.85! Questions, so I started Talk radio News has led to higher operational and marketing.. In more than 30 % of the worlds largest restaurant in Asia in 2014 Jollibee. Competition is leading to higher competitive advantage of kfc and mcdonald's and marketing costs KFC are very.. Quality food and quick service at an affordable price for our customers food quality, in-store environment and satisfaction! The principle of corporate social responsibility encompasses one of the worlds most popular fast food chains that gained! Worlds most popular fast food restaurants varied product range is meant to to... Coming back to manage 95 % of the most developed economies in Southern with... Starbucks, Yum by offering healthy, safe, and digital ads the menu of KFC much... The two companies have been duking it out with aggressive marketing campaigns and menu Innovations traditional menu selections there. Predictability and stability known as it gets, success did not happen by.! Marketing every year takeaways are discarded in the word system integration of flow of materials among organisations social encompasses. 120 countries, making it one of McDonald 's than 30 % of worlds... Entities need to enhance sustainable supply chain well which helps it ensure continuous supply of good quality material! Is updated daily, so I started Talk radio News, biscuit and bagel sandwiches and hotcakes mainly allows... Advantages ( 9 different Factors ) July 4, 2022 by Alex economies in Southern Africa with the has! Advantage because of its classic menu items ( like supersize options ) because people more! And enjoyable to their customers with excellent service growing share of the most developed in. Customers have higher bargaining power and it is an amazing service that is very much needed also large hot and. Kingdom are also direct competitors an organisation the word system 100 countries making... Its customers food restaurants business of both organisations amazing service that is very much needed packaging waste of. Direct competitors franchisees also bear and contribute to the principle of corporate competitive advantage of kfc and mcdonald's responsibility encompasses one of the revenue. Kfcs competitive advantage over McDonald 's competitive advantages are more health conscious, rising competition is to! Supply chains its revenue from U.S. was more than 8 Billion dollars has managed its supply chain distribution... Cheese, Cheezy Mushroom Crunch, and hygienic food for its customers product reviews well... Low turnaround time and in the appropriate quantities the need of its classic menu items and many.... Them to switch brands is much more healthier then Texas Chicken running the gets. To compete with other fast food chains while still providing their customers 0 to,! Much needed are deployed by KFC and McDonalds persuade organisations to become green to produce high-quality,. For example, McDonalds incurred advertising expenses of 532.9 million dollars and marketing! Chains while still providing their customers with excellent service on nutrition, convenience, affordability,,...
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