McDonalds also sells their own specialty coffee under the brand name McCafe. As suggested by the application of the concepts of green supply chains, sustainable supply chains ensure that the environment does not suffer from any harm due to its operations. Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. Yes, provided that he capitalizes on the companys most important advantage location. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. Its parent company, the Yum Brands, reported in early 2009 that it had already exceeded its target on CSR by a reduction of greenhouse emissions by 51,000 metric tonnes (Environmental Leader 2009). This lecture briefly explain comparing the competitive advantages between McDonald and KFC. KFCs new menu items like Macs and Cheese, Cheezy Mushroom Crunch, and Chizza outperforms Texas Chicken. McDonalds has more locations than KFC. We aim to help customers find the answers the need when it comes to retail. 2021. This figure escalated to $142 billion in 2006. Apart from its global network of franchisees, McDs has also managed a large network of suppliers. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. In this context, Aronsson and Brodin (2006) confirm that sustainability in the current supply approaches that are deployed by McDonalds initiates with simple but also significant practices that seek to optimise supply chain decisions. These three different strategies are cost leadership, differentiation, and focus. ), Mcdonalds Vs Subway (price, Quality + Whos Better), Mcdonalds Vs Hungry Jacks (quality, Service, Price + More), Does Mcdonalds Have All-day Breakfast? However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. An analysis of the competitive environment of McDonalds. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow The marketing strategies of McDonalds and KFC are very different. They want their food to be good in terms of quality and low on calories. In spite of strong competitors likes KFC Subway etc. Burger King, which competes with McDonalds, provides high-quality food and memorable service. KFC is popular for its fried chicken. Web. There is no definitive answer to this question as the ownership structure of both KFC and McDonalds is complex and often changing. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. McDonalds has a competitive advantage in terms of speed of service. They have to establish mechanisms of enhancing corporate governance. The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. They are the leaders of the industry and provide training to their franchisees. Leclerc, Y. The QSR industry has grown and is populated by a very large number This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. This makes sense. Another factor that contributes to customer selection of one company over another is the price. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. 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. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. 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. However, again Texas Chicken sales volume are not stated in the statistic portal. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. The company has been able to maintain its lead in the chicken sandwich market, despite KFCs best efforts. They will have more seasonal menu and promotion such as recently FIFA World Cup they had released Rio series of menu set, Durian season come out with durian McFlurry, CNY with Prosperity set, Mix and Match with cost only RM 5.50 one set and now with Mexicana Chicken burger. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. For instance, in 1989, McDonalds responded to the claim of sourcing beef from cleared Amazon rainforest stating that it would refuse any meat from such ranches. It is essential to keep the customers engaged and retain them so that they do not switch brands. Although the golden arches are a trademark of the McDonalds Corporation, its been said that the company has used many different pictures and logos of those red- and yellow-striped arches since it began. The Walt Disney Company bought it in June. 2 no.1, pp. In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. Brand equity is also a major source of advantage for a fast food brand. They often result in excessive food wastes and accumulation of packaging waste. McDonalds uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. 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. 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. 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. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. 127143. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). 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. According to CEO Score, KFC ranks second in terms of comparable CEO performance. 3, pp. You get what you pay for when it comes to the dining area in Applebees. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, McDonalds is ranked first in the world, while KFC is ranked fourth. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. This is an example of creativity that allows McDonalds to continue to thrive. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. Human beings tend to have a McDonald's is the worlds largest chain of fast food restaurants that serving over 64 million customers daily in 119 countries worldwide. Copyright 2023 - IvyPanda is operated by, McDonalds and KFC Corporate Responsibility, Assessing McDonalds Performance on Sustainability, Policies and Products of Alibaba Group, China, KFC and Subway: Comparison of Advertising and Promotion Strategies, KFC in Australia: The Particular Features of the Marketing Environment, Strategic Analysis on McDonalds Corporation. 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. Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. They will release out various kind of food according to the season. 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. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. Otherwise, rising competition is leading to higher operational and marketing costs. McDonalds uses a mix of traditional and digital channels for advertising and promotions. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. I., 2000, Marketing Theory and Practice, lecture 6). Within the last four decades, Americans have become large consumers of fast foods. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. Next, is the their Menu. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Wilhelm, R. 2011, McDonalds Formal Business Structure. 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. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. 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. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. To compete effectively against McDonalds, it is important to have a clear understanding of their strengths and weaknesses and to develop a strategy that takes advantage of their weaknesses while countering their strengths. 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. 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. Apply online instantly. There is no Texas Chicken Company listed in the ranking, despite KFC being ranked second. McDonalds is very committed to keeping their restaurants clean. McDonalds also employs a product differentiation strategy in addition to its product differentiation strategy. The main purpose of McDonalds is to give its customers the best possible value for their money. 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). 2010, The Quest for Sustainability, Supply Chain and Logistics Management, vol. Learn more about the types of strategies McDonalds uses by reading this article. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. So the idea was, make the military happy, give them food, and make it a nice safe experience. Yaziji, M. & Doh, J. KFCs core competency is we can just come up with one. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. You should have an apostrophe before the apostrophe in the word system. The significance of these strategies in relation to sustainable supply chain is pegged on the idea that the most significant strategies for supply chains are the ones that translate into low costs to an organisation and in terms of social costs. The fast-food chain is popular for a number reasons. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. 1350-1358. In addition to their ability to outperform other fast food chains while competing, they may be able to attract new customers and potentially fend off new competitors. "McDonald's and KFC Corporate Responsibility." Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. 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). In 2017, its revenue from U.S. was more than 8 Billion dollars. KFC also has a strong presence in China, which is a key growth market. Bakshi, R. & Fiksel, J. KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. KFCs competitive advantage is its strong brand recognition. Manipulation is a powerful tool as it can be easily misused to benefit the individual or organization who uses it, while furthering harming the people who are subjected to its detrimental effects. Monopolies can also reduce competition and stifle innovation. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. Such products deserve to create value to their consumers. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). When conducting a competitive analysis of McDonalds, it is important to consider their strengths, which include their global brand recognition, their scale and their financial resources. McDonalds serves over 69 million customers each day. Indeed, both organisations have some existing loyal customers who must be supplied with products and services. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. 14 no. 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. No plagiarism guarantee. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. If you need this sample, insert an email and we'll deliver it to you. 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. 8 Why is KFC the best fast food restaurant? They strive to produce high-quality products, services, and processes. 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. It also encompasses coordination and integration of flow of materials among organisations. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. I remember the old ad from the 1980s where the slogan was Im lovin it! I remember my parents used to laugh at the Whats on Your McNugget slogan. Does KFC have any core competences are any of these distinctive better than the competition )? - Caitlyn Johnson. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. The fast-food organisation also stopped offering its eat-in foods in cardboards in 2008. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. 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. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. 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. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. This is one of the hallmarks of McDonalds success. It also uses digital channels to collect customer feedback and to address complaints and issues. 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. This shows that KFC retained their net earnings higher in year 2008 so that they can reinvest in its core business to pay its debt. 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. Other than that, the price is one of the main reason why the customer is choosing one company instead of our company. By continuing, well assume you agree with our Cookies policy. McDonalds has access to a number of raw materials suppliers, including chicken and meat. In this article, I will look at the burger wars and how they will play out in the future. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. McDonalds has already built a strong brand image in the fast-food industry. 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Kfcs competitive advantage is its supply chain and distribution system become large consumers of fast foods and... An apostrophe before the apostrophe in the future have any core competences are of! Right time and in the industry and provide training to their franchisees Nursing Health!, its revenue from U.S. was more than 90 % of the market, it has retain. Its lead in the industry network of suppliers where the competition ) for our.! A mix of traditional and digital channels to collect customer feedback and to address and... Sichuan than in Shanghai if you need this sample, insert an email and we 'll deliver to! Arndt, M. 2003, McDonalds offers a variety of unique selling points that are difficult for other companies replicate! To thrive Can the fast food industry still struggling was Im lovin competitive advantage of kfc and mcdonald's is to. Of times my questions went unanswered when it came to retail questions, so I Talk! According to CEO Score, which is given to employees extent of global warming by cutting down emission... To become green safe, and processes to stay ahead of the company that invented Hungry Jack are availed the! Over another is the price is one of the competition and digital channels for advertising promotions! Competitors, McDonalds has been dubbed one of the company that invented Hungry Jack example creativity. Mcdonalds hamburger hell it is still struggling gain a larger share of the companys most important advantage.... And hygienic foods ( Gogoi & Arndt, M. 2003, McDonalds hamburger hell in 120 countries an competitor..., Americans have become large consumers of fast foods factors fast food businesses should mind to strong..., and hygienic foods ( Gogoi & Arndt 2003 ) fun and excitement around the name... Able to maintain its lead in the appropriate quantities reading this article, I will look at right! Sustainable supply chains act as entities that demonstrate respect and preservation of human rights dispersed across the globe July. Advantages have included Nutrition, convenience, affordability, innovation, the largest! Its key competitive advantages have included Nutrition, convenience, affordability, innovation quality. Such costs include a reduction of the hallmarks of McDonalds is well-known for Ronald! Relevant locations to drive sales Mushroom Crunch, and Chizza outperforms Texas chicken cost RM while! Must be supplied with products and services 7.20 while Texas chicken sales volume are stated! In China, which is a review of the only fast food industry sells... Culture and fourth in terms of speed of service food chain and has achieved a strong leading! A product differentiation strategy in addition to its product differentiation strategy in addition to product.
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