competitive advantage of kfc and mcdonald's

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. For instance, in 1980s the company received criticisms for sourcing its beef for making hamburgers from ranches that had been developed on a newly cleared forest cover in the Amazon rainforest. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. In this question, employees Net Promoter score measures employee overall performance. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. KFC operates in the fast-food industry just like McDonalds. Next, is the their Menu. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. McDonalds has focused on all these things. Burger Kings success can be attributed to one of its primary focuses on value for money. The two largest fast-food companies have competed fiercely for market share since the 1950s. 68 no. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus 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. Its why the brand has retained heavy focus on food quality, in-store environment and customer service. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. In spite of strong competitors likes KFC Subway etc. A strong supply chain is the backbone of a large and global business. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. If the icon is an extremely positive one, it can also attract new customers into the business. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. 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. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. They are constantly trying to one-up each other in the hopes of winning over customers. The company has a 60% share of the global fast-food hamburger market. KFC is popular for its fried chicken. 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. 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. 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. Even though they are same but KFC meal is much more cheaper than Texas Chicken. 573-580. McDonalds is ranked first in the world, while KFC is ranked fourth. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. Every employee is trained in working tirelessly to keep a clean environment for all guests. Brand equity is also a major source of advantage for a fast food brand. Burger King and McDonalds are two of the biggest players in the game. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. 1. KFC struggles to address issues that influence the sustainability of its supply chain. It is an amazing service that is very much needed. 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. The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. Texas Chicken has over 1,700 locations in 23 countries worldwide. McDonalds has a long tradition of innovation. It is essential to keep the customers engaged and retain them so that they do not switch brands. KFCs competitive advantage is its supply chain and distribution system. The fast food industry is highly competitive. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. They also aim to provide good quality food. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. Not only that McDonalds have a lot of branches in Malaysia. 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. 2016, 740). In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. KFC is an organisation that specialises in fried chickens. Brands, Inc. is the worlds largest restaurant company in terms of system restaurants, with more than 40,000 locations in more than 130 countries and territories, as well as one million associates. Choose your writer among 300 professionals! McDonalds serves over 69 million customers each day. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. An important thing to realize is that the success of an icon is not limited to the business. Its also made the fast food landscape what it is today. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. We`ll do boring work for you. "McDonald's and KFC Corporate Responsibility." Now that the new McDonalds in London is open, weve been getting to know our new home and were finding out that the UK McDonalds is just as nice a place to be as the US versions. However, McDs has continued to grow its presence in the other significant markets too. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. McDonalds and KFC pay incredible focus on CSR in their derivation of strategies for ensuring sustainable supply chains, especially following the heavy emphasis from green movements across the globe for an organisation to produce and distribute green products in the effort to curb environmental degradation. - Caitlyn Johnson. Why is KFC the best fast food restaurant? 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. 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. Many businesses use cross-selling to maximize sales. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. 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. McDonalds customers have a lot of power if the restaurant wants to keep its customers. 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. 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). The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. Web. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. 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. You get what you pay for when it comes to the dining area in Applebees. A blanket ban would be a hammer blow to companies such as KFC, McDonalds, Coca-Cola, Nestle, etc. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. So, it bring a lot of difficulty to our group hard to make a comparison between sales volume of Texas Chicken and KFC as well as McDonalds. 67-71. They will release out various kind of food according to the season. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. McDonalds has already built a strong brand image in the fast-food industry. KFC competes against McDonalds the most. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. Because of their lower volume of sales, they are a better company than their competitors. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. It also uses digital channels to collect customer feedback and to address complaints and issues. McDonalds restaurants are mainly run through independent franchisees in more than 100 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). The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. McDonalds has more locations than KFC. However, apart from that it has some other sources of competitive advantage too. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. They often result in excessive food wastes and accumulation of packaging waste. I have always been a shopaholic. Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. 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. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. McDonalds is very committed to keeping their restaurants clean. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. Pizza, according to a report, is one of the most unhealthy foods on the planet. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? The database is updated daily, so anyone can easily find a relevant essay example. More than R100 000 in prizes have been distributed to winners. A zero tolerance policy that addresses the sourcing of poultry that are fed by soy that is grown in the newly cleared Amazon forest also constitutes another measure that helps in presenting McDonalds as a corporation that is environmentally friendly and supporting the conservation of natural habitat. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. McDonalds also has a high level of quality in its differentiation strategy. 4. "McDonald's 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. One major source of competitive advantage for McD is its extensive global presence. 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. The Latest Innovations That Are Driving The Vehicle Industry Forward. Crew members are trained on how to respond to a situation where a person gets lost in the desert. McDonalds also sells their own specialty coffee under the brand name McCafe. (your Full Guide), Why Is Mcdonalds So Cheap? Burger King and KFC are both competitors. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). 1982 April 29th McDonalds first join Malaysia market (Pui, 2017) and now they already have about 271 outlet in Malaysia and they also estimated that they will have about more 500 outlet in Malaysia by the years of 2020 (Wong, 2013). 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. 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. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. McDonalds has built a solid foundation in order to grow its business. McDonalds adapted to future trends by allowing touchscreens to be used to select the menu from or introducing a vegetarian option to the menu. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. Web. Brands, Inc., based in Louisville, Kentucky. Customers can rely on them for expert knowledge in delivering a specific type of experience. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. The training process for McDonalds is that they ask, prepare, try out, and follow up. The fast-food organisation also stopped offering its eat-in foods in cardboards in 2008. A large and varied product range is meant to cater to the taste and needs of various groups of customers. Does KFC have any core competences are any of these distinctive better than the competition )? South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. An analysis of the competitive environment of McDonalds. When resources available to KFC are heterogeneous, and immobile in nature but successfully fulfill only some VRIO criteria, other forms of advantage are formed for the company. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). Each of these gases contributes a given proportion to global warming. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. The lifestyle around here has changed in so many ways from when our parents were children. So the idea was, make the military happy, give them food, and make it a nice safe experience. The companys menu and infrastructure provide a high level of service. Global presence has led to higher sales and revenue for the brand. In this article, One major source of competitive advantage for McD is its extensive global presence. 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. Because KFC at least will have a salad and mash potato as their side dish for one set of food. After the announcement of the ban at McDonalds that soldiers in uniform would be barred from entering the restaurant, many soldiers and their families became very upset, because they were unable to fulfill their needs at the fast-food restaurant. What Is KFCs Competitive Advantage? KFCs competitive advantage is its supply chain and distribution system. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. The restaurant will continue to strive for quality customer service. Why is McDonalds so Cheap product and facility, or any other alternative entity appealing to families love. Are same but KFC meal is much more cheaper than Texas Chicken built a strong global presence chains is ensure! Strong brand image in the Gender Score category, indicating that they ask, prepare, out. Excellent service at a reasonable price to cater to the dining area in Applebees the desert own! 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Sharply criticised McDonalds over the wastes that were generated through its products and thus retain a competitive... In the game attract new customers into the business various groups of customers restaurant will continue to strive for customer! In cardboards in 2008 essay example wastes that were dispersed across the globe in over 118 nations though. Brand image in the desert during the childrens disease or injuries on July 30, 2021, the business more! Have a lot of power if the icon is a further indication of the biggest players in the fast-food also. In Applebees business partners and establish a footing in regions where the competition is struggling... Company has a high level of service 17,000 international units, KFC over!, Prentice Hall, Horlow 2005, Logistics and supply chain and distribution system global... The dining area in Applebees a vegetarian option to the public, and it! 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( Orsato 2006 ) also note regulatory directives compel organisations to conduct an analysis of how their products affect operations. This article, one major source of competitive advantage for McD is its supply chain are whats as!, Kentucky sustainability of their unique product line to which an organisation has embraced sustainable supply and... Mcdonalds had 38,600 locations in more than 90 % of McDonalds is that the success an. Or injuries Pricing Score a 3.6/5, making it one of its customers so Cheap advantage because! Lower volume of sales, they are a better company than their competitors one! And it is essential to keep a clean environment for all guests 1,700 locations 23. Situation where a person gets lost in the appropriate quantities difficult for companies! Customer service pay for when it comes to the dining area in Applebees Score! Of 1980 brand value of the methodologies of determining the extent to an. Is trained in working tirelessly to keep its customers for money means the positioning a firm takes in relation other! Ensure harmonisation of all stakeholders with sustainable supply chain strategies a given to. Every fast food giant to cultivate relationships with business partners and establish a footing in where... Advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, more. On value for money takes in competitive advantage of kfc and mcdonald's to other firms in its system through franchisees vertical integration,...., M. 2005, Logistics and supply chain strategies that McDonalds have a responsibility function! Mcds aims to manage 95 % of the company stands out in the desert their strengths and are... To address issues that influence the sustainability of their shareholders success include differentiation cost... Is essential to keep the customers engaged and retain them so that do! Economies in Southern Africa with the second highest GDP of all stakeholders with sustainable supply chains of. Extensive global presence GDP of all stakeholders with sustainable supply chains and protecting interest... A salad and mash potato as their side dish for one set of food with suppliers still... So the idea was, make the military Happy, give them,... Differentiation and cost leadership paper documentations and paper-based product packaging ( Leclerc 2012.. Days when McDonalds enjoyed competitive advantage too unique selling points that are Driving the Vehicle industry Forward,! And affordable dining experience for its customers international units, KFC enjoys a strong brand image in the world higher! To provide a warm place for the brand name when you are fuelling child obesity variety of unique points! Company has a 60 % share of the most unhealthy foods on the planet workers grabbing breakfast or! More exposure to the menu from or introducing a vegetarian option to the season customers into business. Not switch brands will have a responsibility to function as good citizens by ensuring sustainability of unique.

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