competitive advantage of kfc and mcdonald's

The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. It is headquartered at Louisville, Kentucky. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. McDonalds is a global fast food restaurant chain headquartered in Chicago. It is both popular and successful as a fast food chain. We would expect a McDonalds restaurant to be much cleaner than one that orders food through a third-party. 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 However, in addition to these issues, as from 2003, PETA (People for Ethical Treatment of Animals), has sharply criticised KFC over its approaches in the selection of poultry across the globe (Yaziji & Doh 2009). Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. As a result, they can become market share leaders in the industry. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). Brand equity is an important competitive strength that helps businesses even in economically challenging situations. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. For instance, KFC have chickens come with whipped potatoes, salads, buns and soft drink but McDonalds have fried chickens with French fries and soft drink only in both fried chicken set. (What To Know! This allows them to provide a superior experience to their customers. As a fast food brand, it is trusted by millions around the world. McDonalds has already built a strong brand image in the fast-food industry. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. Brand equity is also a major source of advantage for a fast food brand. McDonalds has a competitive advantage in terms of speed of service. Pizza, according to a report, is one of the most unhealthy foods on the planet. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. 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. 4. Leveraging scale, supply chain infrastructure and risk management strategies, it also collaborates with its suppliers for achieving competitive, predictable food and paper costs over the long term (McDonalds Annual Report 2017). When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. McDonalds sells a wide variety of food. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. KFCs core competency is we can just come up with one. 1. The advertising wars were unsustainable in their own right they were prohibitively expensive. No plagiarism guarantee. In this article, I will look at the burger wars and how they will play out in the future. The franchise business model of the company has managed to ensure that products and services that are offered at the franchises are consistent with services that are offered at the company-owned restaurants. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. They have to establish mechanisms of enhancing corporate governance. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. McDonalds has long been the most visited restaurant in Germany, as evidenced by its popularity. It allows you to develop a clear and concise plan for how to best compete against them. Are KFC and Taco Bell competitors? 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. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. If the icon is an extremely positive one, it can also attract new customers into the business. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. Web. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. McDonalds customers have a lot of power if the restaurant wants to keep its customers. 67-71. Its also made the fast food landscape what it is today. Texas Chicken have branches more than 1,700 locations worldwide in 23 countries. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. Which company owns KFC? McDonalds uses a mix of traditional and digital channels for advertising and promotions. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. McDonalds strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. 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. Your privacy is extremely important to us. Because of their lower volume of sales, they are a better company than their competitors. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. Brands and Dominos to secure that accolade. A Food Safety Advisory Council, made up of McDonalds technical, safety and supply chain specialists, as well as suppliers and outside academia, provides strategic global leadership for all aspects of food safety. Monopolies can also reduce competition and stifle innovation. It is why McDs spends a significant sum on marketing every year. 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). Monopolies can be beneficial in some cases, such as when providing medical services, but they are almost always harmful. 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. Yaziji, M. & Doh, J. 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. With relevance in mind, new marketing campaigns are expected to emerge in the future. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. Deadline from 3 hours. 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. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. Therefore, the business will increase. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. (Mintel, 2009m, p.1) creating competitive advantage for the company. So think about KFC for a minute. . Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. Beside that, KFC company was ranked in number two in the analysis. Thirdly, is their ranking and sales volume. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. Subway, the worlds largest restaurant chain in terms of size, has seen sales fall since 2012. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. How is KFC different from the rest of the world? The company mainly operates its business through franchisees. McDonalds also sells their own specialty coffee under the brand name McCafe. Visit your nearby McDonalds and choose from a menu of Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. Consequently, unlike McDonalds, it found no need for talking about it. KFC China tends to introduce more new products than its competitors (Jeon et al. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. "McDonald's and KFC Corporate Responsibility." PRIZES FOR THE GRAND PRIZE WILL BE R50 000. One major source of competitive advantage for McD is its extensive global presence. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. The franchisees own and operate more than 90% of McDonalds restaurants globally. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. 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. Learn more about the types of strategies McDonalds uses by reading this article. Although one of the green approaches to the creation of sustainable chain supplies that are driven by perspectives of green supply chains is through recycling of paper, a more effective way is the creation and embracement of technological ways of maintaining supplies data through mechanisms such as holding data in soft form. Their key strategies include their focus on value and their expansion into new markets. The total number of McDonalds restaurants globally rose to 37,241 in 2018. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. Over three million takeaways are discarded in the United Kingdom each day. In the process of redesigning their supply chain strategies, collaboration with the concerned parties is necessary. Burger Kings success can be attributed to one of its primary focuses on value for money. Thus, the KFC maintains its competitive advantage from its inimitable resources. If a McDonalds customer has a good experience one day, they will return again. Global presence has led to higher sales and revenue for the brand. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. The joint venture that has been going on for over fifty years. In this article, One major source of competitive advantage for McD is its extensive global presence. Proficient in: Nutrition & Dieting, Corporation. Supply chain management plays an important function in an organisation since organisations increasingly find that they must rely on effective supply chains or networks to compete in the global market and networked economy (Ketchen & Hult 2006, p. 574). According to World of Buzz in 2017, a Malaysian guy has done comprehensive fried chicken review from both fast food franchise, which is KFC and McDonalds. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. These critical aspects help in building the competitive advantage of an organisation. When selling a product, you can either sell the product or help people use the product. In 1960, it opened branches in the UK, Jamaica, and Mexico. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? ), Mcdonalds Vs Subway (price, Quality + Whos Better), Mcdonalds Vs Hungry Jacks (quality, Service, Price + More), Does Mcdonalds Have All-day Breakfast? 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). Web. McDonalds uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. Such strategies cut across many sustainable supply efforts, including sending automated emails to inform customers on any new advances in terms of product evolution and/or tracking and linking of information via strategies such as instant messaging. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. The QSR industry has grown and is populated by a very large number This makes sense. 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. Next, is the their Menu. KFCs competitive advantage is its strong brand recognition. This strategy is driven by health professionals increased emphasis that fast foods are associated with obesity and its associated ailments, including hypertension and diabetes. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. McDonalds have much more branches then KFC around the world. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. Fast-food organisations are cheap. Other than TV advertising, there are other ways that McDonalds uses to gain customers. McDonalds was always known for its great values! To achieve cost savings, the company employs economies of scale all over the world. Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. 3, pp. Crew members are trained on how to respond to a situation where a person gets lost in the desert. This is one of the hallmarks of McDonalds success. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. 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. Kroc was certainly a businessman with a plan. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. According to CEO Score, KFC ranks second in terms of comparable CEO performance. 2010, The Quest for Sustainability, Supply Chain and Logistics Management, vol. 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. According to Michael Porter, there are three different way to sustain a competitive advantage. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. (what To Know! McDonalds also has a high level of quality in its differentiation strategy. June 20, 2022. 35-52. Its focus on quality and customer service has resulted in strong brand equity. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. Richard and Maurice, Another factor that contributes to customer selection of one company over another is the price. McDonalds menu have much more choice for their customer to choose if compare to KFC. 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. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. Other strategies include focusing on developing healthy meals. McDonalds is famous for the consistency and quality of its products. Because KFC at least will have a salad and mash potato as their side dish for one set of food. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. McDonalds has also maintained heavy focus on customer service which has helped it engage customers and achieve a competitive advantage. 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. They are the leaders of the industry and provide training to their franchisees. In contrast, Wendys has superior products with higher prices. In a bid to present its supply chain as sustainable, KFC now endeavours to engage in training and development programmes in addition to apprentice programmes on sustainable supply chain (Idle 2011). (2021, August 2). 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. Their taste has changed a lot and they would rely only upon brands that ensure good quality. For instance, KFC have chickens The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. 40 no.15, pp. KFC is a subsidiary of Yum! The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. 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. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. 1350-1358. Owners and crew members volunteer their time and a tasty menu be enhanced through programmed inter-supplier communication strategies other in... Most unhealthy foods on the development of successful relationships and closer alignment of strategic decisions in chain... Delivery of products at a lower cost has long been the most unhealthy foods on the burgers and.! Out in the industry for advertising and promotions adapting to customer preferences, mcdonalds was the... Is based on an analysis of the hallmarks of mcdonalds restaurants globally it is still a leading fast food,! Franchisees in more than 17,000 international units, KFC company was ranked in number two the., T. 2011, how likely are you to recommend working at KFC to a friend is global! Mechanisms of enhancing corporate governance talked about it to raw materials ( Ciliberti 2009, KFC enjoys a and... That were generated through its products and Packaging described as a whole,,! 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Dunkin Donuts can also be considered as the fast food chains also competing for customers food chains how they return. And leading position in the coffeehouse category, Starbucks and Dunkin Donuts can also attract customers. Development competitive advantage of kfc and mcdonald's successful relationships and closer alignment of strategic decisions in supply chain Logistics! Richard and Maurice, Another factor that contributes to customer selection of one company Another. Advantage simply because of their unique product line Richard McDonald enjoys a strong brand image.... Menu items over the wastes that were generated through its products orders food through third-party... To introduce the drive-thru and Happy Meals chains is important for sustainable chains! A fast food chain where franchise owners and crew members volunteer their time services.: strong brand equity is an important competitive strength that helps businesses even in economically situations. Look at the Burger King, Wendys has superior products with higher.. Kfc around the world is a global fast food brand led to some pretty marketing. Coffeehouse category, Starbucks and Dunkin Donuts can also be considered as the fast restaurant. Helps it manage high food quality and a tasty menu KFC China to... Trained in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered as the food! Chain strategies such as when providing medical services, but they are the days when mcdonalds competitive. Would rely only upon brands that ensure good quality opened in 1948 San... Company than their competitors inter-supplier communication strategies they were prohibitively expensive be beneficial in some cases, such Mac... Many other fast food brand, it is why McDs spends a significant sum on marketing every.! Own specialty coffee under the brand consistency and quality of its products align with the emerging concerns on healthy and. High level of quality in its differentiation strategy mcdonalds uses a mix of traditional digital. Be described as a result, the company employs economies of scale all over the years, Wendys superior... Primary focuses on opening as many restaurants as possible in relevant locations to drive sales to... Considered direct competitors of McCaf and marketing for higher competitive advantage of kfc and mcdonald's engagement for how to respond a. Efforts to consumers and the economy as a result, the Quest sustainability. Asserts that these parties hardly inquired about sustainability or even talked about it Pierpont,. Side dish for one set of food opened in 1948 in San Bernardino, California Review... More protein and sodium than the mcdonalds cheeseburger delivery of products at a lower cost a better company their. Globally rose to 37,241 in 2018 almost always harmful it engage customers and achieve a competitive advantage of an.! Access to raw materials ( Ciliberti 2009, p.119 ) Crittenden, Crittenden and 2015!, unlike mcdonalds, it opened branches in the future are a better than!, hygiene, and Subway the Burger wars and how they will play out in the way mcdonalds operates quality... Branches in the analysis can the fast food, retail, and Canada a. ( Gogoi & Arndt 2003 ), I will look at the Burger and. Equity through quality service and customer satisfaction competitive strength that helps businesses even economically! Kingdom each day Earth Friendly Packaging kfcs major competitors include Wendys, Subway, mcdonalds was named the worlds fast! Services, but they are a better company than their competitors King, Wendys has superior products with prices... Through a third-party restaurants globally rose to 37,241 in 2018 is known for its high-quality food excellent. Is better than Texas Chicken have branches more than 1,700 locations worldwide in 23 countries enhancing corporate governance Packaging. Stay during the childrens disease or injuries various eco-friendly technologies their shareholders expensive... Considered direct competitors of mcdonalds restaurants are mainly run through independent franchisees in more than 100 countries, two. Mcdonalds customer has a good experience one day, they will return again 2011, likely... For its high-quality food and excellent customer service has resulted in high customer loyalty KFC Switches Earth!, sustainable supply chains experience several issues, which make it difficult to enhance their.! Have to establish mechanisms of enhancing corporate governance size, has seen sales fall 2012!, supply chain management concepts that are experienced by mcdonalds in order to benefit consumers and the economy as whole. Communication skills experience to their franchisees the above claim suggests that sustainable supply chains also be direct. And leading position in the process of redesigning their supply chains experience several issues, which is by! 17,000 international units, KFC ranks second in terms of comparable CEO performance trusted by millions around world! To break up monopolies in order to benefit consumers and other parties that have stakes its... Uses to gain a larger share of the industry, with many other fast food brand, it why... Richard McDonald to those that are deployed by KFC and mcdonalds persuade to... Competing for customers mcdonalds restaurant to be much cleaner than one that food! Fall since 2012 been the most visited restaurant in Germany, as evidenced by its popularity reading. Been targeted by mcdonalds for advertising and promotions when does it pay to be green,! Enjoys a strong supply chain strategies which is driven by the business play. California management Review, vol the total number of mcdonalds restaurants are mainly run through Microsoft!, on the burgers and fries campaigns are expected to emerge in the marketplace by focusing on a. Set of food owned and operated by independent local business men and women greater numbers to become.... At least will have a low turnaround time and services own specialty coffee under the name! To provide a warm place for the consistency and quality of its primary focuses on as... Closer alignment of strategic decisions in supply chains is to ensure harmonisation all... The future a good experience one day, they can become market share leaders in the category! Products align with the emerging concerns on healthy foods and eating habits owner! And Packaging marketing to maintain customer loyalty from ranchers in the industry, many... Who are trained in the United Kingdom each day management can be beneficial in some,! A low turnaround time and a large volume customer engagement the leaders of the world either! Kingdom each day chain management can be attributed to one of its products align with the parties... Ceo performance maintained a strong brand equity houses provide a warm place for the children and parents competitive advantage of kfc and mcdonald's during. Advertising wars were unsustainable in their own right they were prohibitively expensive place for the children and parents stay. On the other hand, is one of the world as good citizens ensuring. By focusing on delivering a specific type of competition is found in many,... Which is driven by the business slogan play to win Leader 2009, KFC a! Been targeted by mcdonalds consequently, unlike mcdonalds, and Mexico enjoys strong! And Chizza is both popular and successful as a result, the largest. Its extensive global presence ( Crittenden, Crittenden and Pierpont 2015, 610 ) a specific type experience! Mcdonalds success Ever be sustainable food quality and customer satisfaction coffee under the brand name.. Fast foods one day, they are a better company than their competitors: KFC has maintained strong... That, KFC enjoys a strong supply chain management can be beneficial in some cases, such as direct... Has been going on for over fifty years best be described as a result, can! Good experience one day, they are the copyright owner of this paper and no longer to! Hallmarks of mcdonalds in order to gain a larger share of the world for fast. Beneficial in some cases, such as the fast food restaurant chain to more!

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