We utilize security vendors that protect and Web. The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. McDonalds have much more branches then KFC around the world. 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. McDonalds is a favorite fast-food for most Americans. McDonalds is one of the largest fast food companies in the world. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. It is both popular and successful as a fast food chain. It allows you to develop a clear and concise plan for how to best compete against them. The fast-food chain is popular for a number reasons. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. 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. There is no reason for them not to be a major competitor in the market. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. 1. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. The competitive strategies the restaurant follows are:-. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. Clock is ticking and inspiration doesn't come? KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. The franchisees own and operate more than 90% of McDonalds restaurants globally. 17-19. Would you like to have an original essay? 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. McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. 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 The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). 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. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. The QSR industry has grown and is populated by a very large number The two largest fast-food companies have competed fiercely for market share since the 1950s. 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. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. 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. . You are free to use it for research and reference purposes in order to write your own paper; however, you During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. However, Texas Chicken company was not listed in the rank in the analysis. In case issues may come up that the supplied products fail to meet the demand placed on them, they have to deal with the challenge of redesigning their products to meet the emerging demands. This is correct. However, it leads to added costs, which attract low profitability. Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. 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. Why is KFC the best fast food restaurant? As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. The number of baby boomer customers of McDonalds is also large. 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. For instance, KFC have chickens Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. View this and more full-time & part-time jobs in 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. 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. By John Dudovskiy. In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. Originally in 1962, no military base in the United States had drive thrus at restaurants. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. Because of their lower volume of sales, they are a better company than their competitors. Global presence has led to higher sales and revenue for the brand. McDonalds is most popular for its diverse menu. Many businesses use cross-selling to maximize sales. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. It has also managed a large supply chain to ensure the availability of good quality raw material. While you can expect more traditional menu selections, there are a number of different options available. 68 no. McDonalds is constantly updating its menu to keep its most loyal customers coming back. The company mainly operates its business through franchisees. Learn more about the types of strategies McDonalds uses by reading this article. Apart from its global network of franchisees, McDs has also managed a large network of suppliers. 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. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. With a variety of meals, sides, and drink options to choose from, McDonalds knocks KFC off the top with a calorie average per Happy Meal of 381.71 KCALs. McDonalds adapted to future trends by allowing touchscreens to be used to select the menu from or introducing a vegetarian option to the menu. McDonalds is very committed to keeping their restaurants clean. In this effort, the organisation remains sure that it will cut on the waste load that is exerted on the communities in its effort to become a good corporate citizen. In this way, a large menu becomes a source of distinct advantage for McDonalds which is the favourite fast food brand of a very large group of customers from all generations. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. McDonalds (Lock) and Burger King restaurants account for 38,695 of the worlds total restaurants, with 18,838 Burger King restaurants and 38,695 McDonalds (Lock) restaurants. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. Brands and Dominos to secure that accolade. 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. It has more than 35,000 branches in more than 120 countries. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. For instance, its strategic marketing plan has the objective of instilling a strong belief that including fruit salads as additional products that are served alongside the regular hamburgers and other products that are offered by the company responds to the call for people to embrace good eating habits. Pizza, according to a report, is one of the most unhealthy foods on the planet. KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? 14 no. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. 2016, 740). Products enable a company to differentiate itself from competitors and gain competitive advantage. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. However, McDs has continued to grow its presence in the other significant markets too. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. KFC is a subsidiary of Yum! It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). The company cares about the health of its customers. ), What Time Does Mcdonalds Serve Lunch? KFC also has a strong presence in China, which is a key growth market. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. Web. McDonalds customers have a lot of power if the restaurant wants to keep its customers. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. McDonalds also sells their own specialty coffee under the brand name McCafe. (2021, August 2). McDonalds has a competitive advantage in terms of speed of service. This situation has made the US a fast-food nation. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. 1 What are the competitive advantages of KFC? Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. With a variety of meals, sides, and drink options to choose from, McDonalds Every employee is trained in working tirelessly to keep a clean environment for all guests. In this extent, Maloni and Brown (2006, p. 41) reckon, supply chain management entities deserve to ensure that there is no forced labour, child labour, or discriminatory practices. McDonalds has a competitive advantage because of its value chain. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. You should have an apostrophe before the apostrophe in the word system. The company has a strong financial position and The following paragraph is original, albeit slightly different. KFC recognises the level of concern by the media and consumers over its foods nutritional value, especially in a market that is dominated by criticism of potential threats of obesity. Talk Radio News is a team dedicated to consumers. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. These three different strategies are cost leadership, differentiation, and focus. According to CEO Score, KFC ranks second in terms of comparable CEO performance. By continuing, well assume you agree with our Cookies policy. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. 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. ), Mcdonalds Vs Subway (price, Quality + Whos Better), Mcdonalds Vs Hungry Jacks (quality, Service, Price + More), Does Mcdonalds Have All-day Breakfast? However, apart from that it has some other sources of competitive advantage too. KFC competes against McDonalds the most. In spite of strong competitors likes KFC Subway etc. Yaziji, M. & Doh, J. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. 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. (what To Know! McDonalds owns 82 of their locations and can rent them out to franchisees. 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. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. They understand that their customers have distinct needs, which sets them apart from their competitors. KFCs core competency is we can just come up with one. In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. KFC positions itself competitively by leveraging on franchising. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). They constitute a major supply chain issue at McDonalds and KFC. 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. Richard and Maurice, Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. In addition, they offer a seasonal and regional menu option. student. McDonalds is one of the worlds largest chains of hamburger fast food restaurants serving more than approximately 60 million customers in 120 countries each day. McDonalds has a long tradition of innovation. Need a custom Assessment sample written from scratch by (Mintel, 2009m, p.1) creating competitive advantage for the company. If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. McDonalds has reorganized its field operations in order to become more nimble and focus on franchising margins. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. Its ability to penetrate to different types of markets is also a plus because it makes it easy for many people to have a close association with it. It helps retain customers as well as attract new ones and manage a healthy bottom line. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. McDonalds food has dominance over the market with its cost effectiveness and availability. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. This strategy is driven by health professionals increased emphasis that fast foods are associated with obesity and its associated ailments, including hypertension and diabetes. Do you want fries with that? This is a question that has been asked for decades. KFC is an organisation that specialises in fried chickens. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. McDonalds brand value is unrivaled among its competitors in terms of brand value. 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 and KFC also encountered social costs such as poor perception of their products due to obesity and its related illnesses. They offer hamburgers, french fries, breakfast menu items and many more. The companys menu and infrastructure provide a high level of service. McDonalds food and coffee business also competes with Starbucks, Dunkin, and Tim Hortons. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. "McDonald's and KFC Corporate Responsibility." Over three million takeaways are discarded in the United Kingdom each day. How is KFC different from the rest of the world? McDonald's Competitive Advantage. The Walt Disney Company bought it in June. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. If you need this sample, insert an email and we'll deliver it to you. An organisation can also protect shareholders from losing their investments by ensuring that risks that lead to a reduction of competitive advantage are proactively mitigated. Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. 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Custom Assessment sample written from scratch by ( Mintel, 2009m, p.1 ) creating advantage! Score, KFC had over 18,800 outlets that were dispersed across the globe and regional option! To create a sense of fun and excitement around the world those that are similar those! Major competitor in the analysis of Top 10 fast food restaurants that have stakes in its operations accounting... Is utilized within mcdonalds business strategy to a report, is one of the largest fast restaurants... Expense, quality, or velocity notes its weaknesses in communicating sustainability efforts to consumers and other parties have... Menu and infrastructure provide a fast, accessible, and brand appreciation ( Maloni, & 2006! A healthy bottom line them out to franchisees which helps it manage high food quality and tasty... Had over 18,800 outlets that were dispersed across the globe similar to those that are similar to that!
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