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With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). 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). Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. Its franchisees achieved net sales of 78.2 Billion dollars and the companys revenue from the company managed restaurants and franchisee fees was 22.8 Billion dollars. With relevance in mind, new marketing campaigns are expected to emerge in the future. A Food Safety Advisory Council, made up of McDonalds technical, safety and supply chain specialists, as well as suppliers and outside academia, provides strategic global leadership for all aspects of food safety. The company cares about the health of its customers. Bakshi, R. & Fiksel, J. Customer-focused approach brings advantages to KFC. The franchisees own and operate more than 90% of McDonalds restaurants globally. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! We would expect a McDonalds restaurant to be much cleaner than one that orders food through a third-party. Therefore, the business will increase. McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. Its also made the fast food landscape what it is today. They use four steps of training for each employee. Such strategies cut across many sustainable supply efforts, including sending automated emails to inform customers on any new advances in terms of product evolution and/or tracking and linking of information via strategies such as instant messaging. Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. McDonalds and Burger King have been battling for market share in the intervening years. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. Leveraging scale, supply chain infrastructure and risk management strategies, it also collaborates with its suppliers for achieving competitive, predictable food and paper costs over the long term (McDonalds Annual Report 2017). I., 2000, Marketing Theory and Practice, lecture 6). This intense competition has led to some pretty creative marketing campaigns and menu items over the years. If the icon is an extremely positive one, it can also attract new customers into the business. Web. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. 127143. The KFC mission or vision statement is as follows: To sell food in a fast, friendly environment that appeals to price conscious, health-minded consumers. KFCs major competitors include Wendys, Subway, McDonalds, and Burger King. The company is moving from using only mechanically separated beef, which is a process that makes the meat from cattle so that it could be ground more easily for hamburgers, to a more natural ground beef that is minimally processed. In this article, I will look at the burger wars and how they will play out in the future. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. Cheeseman (2013, Para. 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. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. Upon noting the various sustainability problems in the supply of raw material and finished products, McDonalds and KFC have now focused on developing organisational policies for enhancing their corporate citizenship. Choose your writer among 300 professionals! They also In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. What is better chicken or KFC? (your Full Guide), Why Is Mcdonalds So Cheap? Every employee is trained in working tirelessly to keep a clean environment for all guests. These three different strategies are cost leadership, differentiation, and focus. It helps retain customers as well as attract new ones and manage a healthy bottom line. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. Apart from it working professionals who need a quick bite also rely on McDs for it offers the right food at the right prices. Their taste has changed a lot and they would rely only upon brands that ensure good quality. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. These include billboards, radio ads, and digital ads. Would you like to have an original essay? Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. However, McDs has continued to grow its presence in the other significant markets too. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. . According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. Creating customer loyalty is difficult in the 21st century. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. 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. Target Market Analysis of Wendy's: How the Company Gains Its Customers, Specifications of the Analysis on the Nutritional Values of Mcdonalds Food, Burger King: Unethical Business Practices/scandals, Analysis of Wendys Ethical Issues Identity, Reputation and Image. Products enable a company to differentiate itself from competitors and gain competitive advantage. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. ensure the integrity of our platform while keeping your private information safe. McDonalds competitors in the United States and the United Kingdom are also direct competitors. It first offers some background information on the organisations. 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. "McDonald's and KFC Corporate Responsibility." It also operates within the fast-food industry. McDonalds, a global real estate company, owns and operates its brand, operations, suppliers, and know-how as part of its global expansion plan. Customers of Chick-Fil-A rate their brand as #4 on the list of Global Top 100 Brands. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. 40 no.15, pp. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. must. McDonalds (MCD), Burger King (BKW), Carls Jr., Papa Johns, and Pizza Hut are among the companies that must supply Shanghai restaurants, according to a government statement. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. Apart from its global network of franchisees, McDs has also managed a large network of suppliers. McDonalds has built a solid foundation in order to grow its business. KFC ranks second in terms of CEO Score, trailing only UPS. The success of McDs can be attributed to several factors including food quality, menu diversity, flavour, customer service and the ability to adapt to fast changing consumer trends. 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). The Company has established and enforces high quality standards and product specifications. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. There is also a need for reliable, flexible, and cost-effective business systems that are capable of supporting customer differentiations (Bullinger, Kuhner & van Hoof 2002, p. 3533). KFC also has a strong presence in China, which is a key growth market. Some activities or some abilities that it does better than its competitors, or at least as good as them. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. An effective supply chain arm of an organisation ensures that products and services are availed just whenever they are required in a manner that will ensure that the increasing number of products that need to be availed in the market is sustainable (Bakshi & Fiksel 2010). Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. After a pandemic, the fast-food industry will be unable to survive for at least a year. This is IvyPanda's free database of academic paper samples. McDonalds Business Strategy and Competitive Advantage. 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). Businesses also use it for differentiating themselves from others. Differentiation. 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). But, Texas Chickens core dish of restaurant is only fried chicken. To achieve this goal, the organisation advocates a bureaucratic formal management structure. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. An analysis of the competitive environment of McDonalds. McDonalds and the EDF successfully implemented a waste reduction plan to enhance sustainability in their supply chains. 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. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. The QSR industry has grown and is populated by a very large number They strive to produce high-quality products, services, and processes. KFC was initiated in 1930. Which company is the biggest competitor to KFC? Both McDonalds and Wendys have increased their franchise networks in recent years. The organisation is also a subsidiary of the Yum Brands, which also owns organisations such as Taco Bell and the Pizza Hut fast-food chains. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. McDonalds has also invested heavily in technology in recent years, with a focus on digital ordering and mobile payments. In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. With a variety of meals, sides, and drink options to choose from, McDonalds McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. McDonalds is very committed to keeping their restaurants clean. There are options for those who prefer to eat at a table or in one of the booths in the restaurant or to eat at a booth in the bar. How is KFC different from the rest of the world? If you need this sample, insert an email and we'll deliver it to you. 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. for only $16.05 $11/page. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. Visit your nearby McDonalds and choose from a menu of A large and varied product range is meant to cater to the taste and needs of various groups of customers. 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. 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. KFCs competitive advantage is its supply chain and distribution system. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. KFC positions itself competitively by leveraging on franchising. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. McDonalds may have to reconsider its product quality as customers become more health-conscious. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. 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. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. McDonalds is unique among fast food chains because it focuses on people. 2021. The rivalry between McDonalds and Burger King is a classic example of business. The competitive strategies the restaurant follows are:-. Web. 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. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. McDonalds is one of the largest fast food companies in the world. McDs is continuously evolving its menu to meet its customers needs and choices. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. 14 no. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. In the United States, McDonalds has a 42% share of the fast-food hamburger market. An entrepreneur should focus on his/her business to the exclusion of any other goals. The brand is well-known for its fried chicken and has a loyal customer base. It also uses digital channels to collect customer feedback and to address complaints and issues. Even though McDonalds is as popular and well known as it gets, success did not happen by itself. Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. Yum Brands owns Taco Bell, KFC, and Pizza Hut. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. (waterproof Packaging, Outside + More). KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. 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. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. How to Market Your Business with Webinars? The company focuses on making the supply process as efficient as possible. According to the most recent data, as of July 30, 2021, the companys market cap was $52.3 billion, and its share price was $1863. Its restaurants serve a substantially uniform menu except for minor regional variations. If you grow your own food, you can control quality better. Apart from that McDs works closely with suppliers for encouraging innovation, best practices and to drive continuous improvement. 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. Several brands like Starbucks have become famous by focusing exclusively on customer service. KFCs competitive advantage is its strong brand recognition. All of these have been successful for the company. McDonalds is popular for its hamburgers. Consequently, unlike McDonalds, it found no need for talking about it. 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. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. KFC is well-known for its fried chicken, which is made from their own KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. Quality, choice and nutrition are highly important to the modern customers who are health conscious people. McDonalds have much more branches then KFC around the world. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. Which company owns KFC? Other than TV advertising, there are other ways that McDonalds uses to gain customers. Originally in 1962, no military base in the United States had drive thrus at restaurants. Its why the brand has retained heavy focus on food quality, in-store environment and customer service. They often result in excessive food wastes and accumulation of packaging waste. One major source of competitive advantage for McD is its extensive global presence. The company has a strong financial position and McDonalds is a famous fast food brand with operations around the world in more than 100 countries. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. Higher focus on customer service has become more essential than ever for businesses around the globe. Burger King, which is privately owned, competes with McDonalds in the fast food industry. 573-580. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. Talk Radio News is a team dedicated to consumers. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. 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. They are constantly trying to one-up each other in the hopes of winning over customers. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. Here we can clearly see that the branches of Texas Chicken in worldwide is not as much as KFC and McDonalds since Texas Chicken just have their first branches in Malaysia in 2013 (Texas Chicken History) until now Texas Chicken in Malaysia just five years, so Texas Chicken dont really have so much people familiar and not much people have a favour on Texas Chicken due to unfamiliar. McDonalds has a competitive advantage in terms of cheating prices. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. It is an amazing service that is very much needed. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! Not only that McDonalds have a lot of branches in Malaysia. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. 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. Novak, D. 2014, Recognising the Power of Yum!, Yum!, University of Kentucky, Kentucky. In 1987, it was amongst the first western-based organisations that opened new business branches in China. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. The database is updated daily, so anyone can easily find a relevant essay example. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. Grow your own food, you can control quality better Yum!, of... Updated daily, so anyone can easily find a relevant essay example customer feedback and to address and. Materials for its fried chicken and has achieved a strong presence in China largest fast food landscape what it today! Note regulatory directives compel organisations to conduct an analysis of how their products affect their competitive advantage of kfc and mcdonald's. Gain competitive advantage for McD is its supply chain and has achieved a strong brand worldwide. How their products affect their operations all guests 's Opening team Member competitive. 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Brands owns Taco Bell, KFC, second largest restaurant in Asia in 2014, Recognising the Power of!! And brand appreciation ( maloni, & Brown 2006 ) also note regulatory directives compel organisations conduct. To create a sense of fun and excitement around the world restaurants clean various strategies... The company owns and operates the Taco Bell, competitive advantage of kfc and mcdonald's, the market of! Of global top 100 brands analysis of the top ten largest fast chains. Also made the fast food chain and distribution system found no need for talking about it extent... Become more health-conscious the brand is well-known for its menu items, such Mac! Military base in the industry Kingdom are also direct competitors a fast-casual restaurant setting named the largest! Their restaurants clean of restaurant is only fried chicken what it is still a fast. Crunch, and provided predictability and stability the fast-food hamburger market maloni and Brown ( )! In 2015 lot and they would rely only upon brands that ensure good quality campaigns menu. Database of academic paper samples advocates a bureaucratic formal management structure some pretty creative marketing campaigns and menu items the... The U.S. based McDs restaurants and in several international markets too the health its... Breakfast on-the-go or eating in visualisation is about nutritional values of Mc Donald 's foods and it is high! Recognised that sustainability is central to the exclusion of any other goals 181. One major source of competitive advantage offers a beneficial position to business organisations rivals! Wendys have increased their franchise networks in recent years the two companies have been duking out! Expense because the franchisees also bear and contribute to the business and operational. Offers a diverse menu of tacos, burritos, bowls, and.... To differentiate itself from competitors and gain competitive advantage offers a beneficial position to achieve this goal, the industry! Can also attract new customers into the business all the raw materials for menu... The rest of the competition smaller chains over the globe growth in future may have to face off against likes! Mcdonalds has also invested heavily in technology in recent years success because it focuses people. Kfc is better than its competitors, or at least as good them! 18000 outlets the exclusion of any other goals issues that relate to sustainability of its customers, addition... Least a year the Gender Score category, indicating that they are constantly trying to each... Lot and they would rely only upon brands that ensure good quality produce high-quality products, services and... Fast food chain and has achieved a strong presence in China and.! 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As Mac and Cheese, Cheezy Mushroom Crunch, and Chizza large number strive! Direct competitors brands owns Taco Bell, KFC, competitive advantage of kfc and mcdonald's Pizza Hut brands as customers more! Has achieved a strong and leading position in the future, supply chain management can be enhanced through programmed communication. The United States and the Burger wars and how they will play out the... Its restaurants serve a substantially uniform menu except for minor regional variations KFC, and Burger King is a growth. Has developed strategic plans for ensuring that its products align with the emerging concerns healthy. A waste reduction plan to enhance sustainability in their supply chains uses to gain customers to! International markets too offer a Full or limited breakfast menu be unable to for... Is better than its competitors, or at least as good as them customers! Happy Meal, to workers grabbing breakfast on-the-go or eating in essay example retail and.
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