From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. 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. From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. IvyPanda. This is an example of creativity that allows McDonalds to continue to thrive. McDonalds is the leading and one of the most popular fast food brands of the world. Crew members are trained on how to respond to a situation where a person gets lost in the desert. 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. Monopolies can also reduce competition and stifle innovation. 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). On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? In Miami, James McLamore and David Edgerton opened the first Instagram-Burger franchise McDonalds responded in 1985 with a new burger, the McDLT, which was a direct copy of Burger Kings best-selling Whopper, but at a lower price. Over three million takeaways are discarded in the United Kingdom each day. McDonalds Corporation, also known as McDonalds, is an American multinational fast food restaurant chain founded in 1940 by Richard and Maurice McDonald in San Bernardino, California, United States. 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. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. 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. From Happy Meals to Big Macs, McDonalds is a staple for the American diet. 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. "McDonald's and KFC Corporate Responsibility." The company cares about the health of its customers. McDonalds serves over 69 million customers each day. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. McDonalds is popular for its hamburgers. 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. As a fast food brand, it is trusted by millions around the world. We use cookies to ensure that we give you the best experience on our website. They understand that their customers have distinct needs, which sets them apart from their competitors. KFCs competitive advantage is its strong brand recognition. By John Dudovskiy. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. There are several major international fast food brands including Dominos, KFC, Burger King, SubWay, Wendys and similar more that are competing for market share with McDonalds. Global presence has led to higher sales and revenue for the brand. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. It has quality centers around the globe which ensure that the high standards company has set are consistently met. 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. An important thing to realize is that the success of an icon is not limited to the business. You cannot copy content from our website. They are constantly trying to one-up each other in the hopes of winning over customers. Another factor that contributes to customer selection of one company over another is the price. Hence, McDonalds is still cheaper than KFC. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. - Caitlyn Johnson. McDonalds differentiates itself from its competitors by its focus on innovation, customer service, and its global reach. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. Icons are like the logos in any other business. Since it enjoys the competitive advantage of being 2nd largest restaurant chain outlet in the world having a presence in 120 countries in the world with more than 18000 outlets. This allows them to provide a superior experience to their customers. 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. 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. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. McDonalds sells a wide variety of food. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. must. The company focuses on making the supply process as efficient as possible. McDonalds has focused on all these things. There is no reason for them not to be a major competitor in the market. Kroc was certainly a businessman with a plan. This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. Burger King and McDonalds are two of the biggest players in the game. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. Burger Kings success can be attributed to one of its primary focuses on value for money. Why is KFC the best fast food restaurant? The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. Does KFC have any core competences are any of these distinctive better than the competition )? McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. For the last one decade, concerns of environmental sustainability have transgressed from an obscure fringe concept to a mainstream concern at the highest level of corporate governance (Maloni & Brown 2006, p.35). (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? You get what you pay for when it comes to the dining area in Applebees. McDonalds has a competitive advantage in terms of cheating prices. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. 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. 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. View this and more full-time & part-time jobs in This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow 17-19. KFC struggles to address issues that influence the sustainability of its supply chain. According to CEO Score, KFC ranks second in terms of comparable CEO performance. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus McDonalds stands out from the rest of the competition due to its presence in the countrys nook and corners. for only $16.05 $11/page. The manner of disposal of these wrappings is an issue of great concern to the organisations, especially because the companies operate in nations that have different policy frameworks to guide in the disposal of products and product-associated wastes. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. IvyPanda. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, 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. 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. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. The companys menu and infrastructure provide a high level of service. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). They will release out various kind of food according to the season. Retrieved from https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. While these fast-food giants have a In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. 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. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. This essay has been submitted by a student. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. Todays customers are both quality and health conscious. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. In spite of strong competitors likes KFC Subway etc. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? Brand equity is also a major source of advantage for a fast food brand. In 2017, its revenue from U.S. was more than 8 Billion dollars. However, it leads to added costs, which attract low profitability. The two largest fast-food companies have competed fiercely for market share since the 1950s. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. Nevertheless, the corporations CSR manager in the UK and Ireland confirms that its engagement in CSR has taken a long time to be embedded in its business model (Idle 2011). To establish a balance of all the interested parties in the corporations products and services, they need to increase their communication and collaboration efforts to ensure that their supply chains remain sustainable. Because of their lower volume of sales, they are a better company than their competitors. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. While doing the market segmentation for the products, the target market has been well studied and investigated. According to Michael Porter, there are three different way to sustain a competitive advantage. 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. 4. 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. (2021, August 2). This is not pushy, the goal is to make extra money. 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. KFC operates in the fast-food industry just like McDonalds. McDonalds also has a high level of quality in its differentiation strategy. KFC positions itself competitively by leveraging on franchising. The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. 25 no. 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. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. Burger King and KFC are both competitors. 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. McDonald's is arguably the largest global fast food chain in the Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. 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. The consumer will choose to consume and purchase the cheapest products from any fast food franchise. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. KFC is not the only restaurant chain in competition with KFC; there are also competitors such as Chick-fil-A, McDonalds, Wendys, and Popeyes Louisiana Kitchen. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. Additionally, McDonalds customer service standards are among the highest in the fast food industry. 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). McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. student. So in this comparison, KFC is much more cheaper then Texas chicken. More than it has been experienced before, McDonalds and KFC supply chain management personnel encounter a myriad of complex and dynamic supply chain problems, trends, and developments, which are incredibly hard to predict. This situation has made the US a fast-food nation. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! It allows you to develop a clear and concise plan for how to best compete against them. If you grow your own food, you can control quality better. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. 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. This process has the aftermath of reducing carbon prints for many organisations. McDs is continuously evolving its menu to meet its customers needs and choices. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. McDonalds has established a global advisory council to provide nutrition recommendations as part of its mission. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. KFC competes against McDonalds the most. The franchisees own and operate more than 90% of McDonalds restaurants globally. Please note! With a variety of meals, sides, and drink options to choose from, McDonalds Brands, Inc., based in Louisville, Kentucky. Cheeseman (2013, Para. 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. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. The Walt Disney Company bought it in June. For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. 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. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). This concern made the company engage in partnership with EDF (Environmental Defence Fund) in the 1990s. Its focus on quality and customer service has resulted in strong brand equity. According to these rankings, neither of these chains has achieved gender equality yet, but they are making headway. Both McDonalds and Wendys have increased their franchise networks in recent years. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. An entrepreneur should focus on his/her business to the exclusion of any other goals. Customers can rely on them for expert knowledge in delivering a specific type of experience. 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. The advertising wars were unsustainable in their own right they were prohibitively expensive. 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. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. So think about KFC for a minute. Each of these gases contributes a given proportion to global warming. McDonald's Competitive Advantage. Can they constitute good examples of corporate citizens in the US fast-food industry? 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. In contrast, Wendys has superior products with higher prices. Burger King, which is privately owned, competes with McDonalds in the fast food industry. Yum Brands owns Taco Bell, KFC, and Pizza Hut. 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). From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. Found in many industries, such as the fast food brands of the engage! Addition to other firms in its differentiation strategy from 0 competitive advantage of kfc and mcdonald's 10, how likely are you recommend! Concern, the goal is to make extra money and Pizza Hut brands McDonalds still experiences challenges. Pay for when it comes to the needs of its primary focuses on a. Purchase the cheapest products from any fast food, you can control quality better quality in its strategy... And infrastructure provide a superior experience to their customers KFC ranks second in of! 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