McDonalds food has dominance over the market with its cost effectiveness and availability. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. While you can expect more traditional menu selections, there are a number of different options available. Wendys restaurants have over 6,800 locations worldwide. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. The Company has established and enforces high quality standards and product specifications. This allows them to provide a superior experience to their customers. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. Competition in the fast food industry has grown intense due to the rise of several local and international brands. McDonalds is popular for its hamburgers. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. KFC, the worlds second largest restaurant chain, operates over 18000 restaurants in 120 countries. Its also made the fast food landscape what it is today. Even though they are same but KFC meal is much more cheaper than Texas Chicken. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. Please note! 17 no. According to CEO Score, KFC ranks second in terms of comparable CEO performance. I believe were going to see a new chapter in the Burger Wars in the coming years. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. These efforts have helped the company maintain its position as the largest fast food chain in the world. 14 no. We would expect a McDonalds restaurant to be much cleaner than one that orders food through a third-party. McDonalds competitors in the United States and the United Kingdom are also direct competitors. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. They often result in excessive food wastes and accumulation of packaging waste. For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. We`ll do boring work for you. 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. McDonalds Business Strategy and Competitive Advantage. 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. McDonalds serves over 69 million customers each day. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. In the United States, McDonalds has a 42% share of the fast-food hamburger market. Other strategies include focusing on developing healthy meals. Richard and Maurice, 40 no.15, pp. So far, McDonalds seems to be winning the battle. Business Week, 18-19. In the Chinese market, KFC came under criticisms for utilising a growth hormone and high levels of antibiotics in its poultry in a manner that violated the Chinese law (Hsu 2013). The two largest fast-food companies have competed fiercely for market share since the 1950s. Higher price of the products in KFC compared to McDonalds and there are also cheap alternatives available due to less economical meal sets offered in KFC compared to its biggest competitor McDonalds, which they more focusing on strategy of seasonal induction of tempting deals. 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). 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. This is correct. Apply online instantly. Burger King globally generated more than $20 billion in revenue during the fiscal year ending in 2020. McDonalds has been successful due to its strategies that keep customers coming back. 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. McDonalds has reorganized its field operations in order to become more nimble and focus on franchising margins. 7 How is KFC different from the rest of the world? A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. Within the last four decades, Americans have become large consumers of fast foods. If a McDonalds customer has a good experience one day, they will return again. 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. Claims of failure to invest in green technologies and use of green raw material have also challenged McDonalds sustainability of its supply chains. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. The rivalry between McDonalds and Burger King is a classic example of business. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. KFCs competitive advantage is its supply chain and distribution system. The main purpose of McDonalds is to give its customers the best possible value for their money. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. Similar to McDonalds, the organisation also follows the franchising model of operation. However, again Texas Chicken sales volume are not stated in the statistic portal. It is both popular and successful as a fast food chain. McDonalds has a competitive advantage in terms of speed of service. Through continual innovation & technology research and upgrade, McDonalds have transformed itself from a small bar-b-que restaurant to a fast food restaurant chain serving mainly burgers, chicken products, fries, beverages, desserts, salads, wraps and fruits for breakfast, lunch, dinner and even supper 24 hours a day, 7 days a week. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. 4. (what To Know! This essay has been submitted by a student. . Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. 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. 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. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. It has helped McDonalds build a distinct brand image and identity among the fast food brands which works as a source of competitive advantage achieving higher brand recall and sales. There are approximately 36,889 restaurants in 120 countries and territories around the world. However, it is generally accepted that the two companies are not owned by the same entity. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. They use four steps of training for each employee. 1) a unique and identifiable service or product, 2) a well-located and accessible location, and 3) a high level of customer service. The number of baby boomer customers of McDonalds is also large. In contrast, Wendys has superior products with higher prices. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. The human mouth craves those flavors and that is what makes you go back for more KFC.. This is an example of creativity that allows McDonalds to continue to thrive. 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, it leads to added costs, which attract low profitability. On a scale from 0 to 10, how likely are you to recommend working at KFC to a friend? McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. To achieve this goal, the organisation advocates a bureaucratic formal management structure. McDonalds also has a high level of quality in its differentiation strategy. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. It has more than 35,000 branches in more than 120 countries. Since an organisation must balance all interests of the stakeholders, owners of the corporations become disadvantaged since high operational costs imply low returns on investments. McDonalds has also maintained heavy focus on customer service which has helped it engage customers and achieve a competitive advantage. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! Faced with modern problems that are associated with the production and distribution of products, supply chains managers in the two organisations deserve plausible information about the implications of supply chain and logistics strategies on physical and environmental participants in a bid to create socially corporate organisations. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. Carbon prints form one of the methodologies of determining the extent to which an organisation has embraced sustainable supply chains. An important thing to realize is that the success of an icon is not limited to the business. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. Talk Radio News is a team dedicated to consumers. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. 3, pp. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? McDonalds is constantly updating its menu to keep its most loyal customers coming back. (your Full Guide), Why Is Mcdonalds So Cheap? Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. The success of the organization has been its ability They are the leaders of the industry and provide training to their franchisees. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. TalkRadioNews is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com, Does Mcdonalds Have All Day Breakfast? The principles must be directly related to the concerns of people who consume the products. 1 What are the competitive advantages of KFC? Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. Apart from its global network of franchisees, McDs has also managed a large network of suppliers. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. 35-52. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. Different organisations may choose to pursue different types of competitive advantages. While doing the market segmentation for the products, the target market has been well studied and investigated. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. For instance, both organisations are immensely concerned with their environmental impacts. 2 August. For example, McDonalds is one of the only fast food chains that offers breakfast items all day long. 1. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. 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. "McDonald's and KFC Corporate Responsibility." By continuing, well assume you agree with our Cookies policy. KFC got the most influence from McDonalds, the best competitor. 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. 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. 49 no. 48 no. In 1960, it opened branches in the UK, Jamaica, and Mexico. KFC is a subsidiary of Yum! The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. 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. food. 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. KFCs sources of competitive advantage. "McDonald's and KFC Corporate Responsibility." The company has kept their marketing messages simple and consistent. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. Apart from intense competition and pricing pressure, there are other reasons too that businesses have to struggle to retain their existing customers and build strong customer loyalty. Excellent! The fillet-o-fish is a popular menu item. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. Deadline from 3 hours. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. Quality, choice and nutrition are highly important to the modern customers who are health conscious people. 1350-1358. McDonalds has built a solid foundation in order to grow its business. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. Brands and Dominos to secure that accolade. With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). 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. for only $16.05 $11/page. 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. McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. Although McDonalds is probably not the best way to keep kids healthy, millions of families have enjoyed happy meals and ice cream cones at McDonalds. McDonalds has also invested heavily in technology in recent years, with a focus on digital ordering and mobile payments. While McDs mainly serves a uniform menu globally with no substantial variations except for small regional ones, its menu is still quite large and diversified. They constitute a major supply chain issue at McDonalds and KFC. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). The two companies have been duking it out with aggressive marketing campaigns and menu innovations. ), What Time Does Mcdonalds Serve Lunch? Learn more about the types of strategies McDonalds uses by reading this article. McDonalds is top competitors which brought the most influence towards KFC company. 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. 573-580. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. The company cares about the health of its customers. 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 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. Because of their lower volume of sales, they are a better company than their competitors. (2021, August 2). McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. The following paragraph is original, albeit slightly different. 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). Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. 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). Orsato, R. 2006, Competitive Environmental Strategies: When does it pay to be green?, California Management Review, vol. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. 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). 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. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. 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. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. "McDonald's and KFC Corporate Responsibility." McDonalds is famous for the consistency and quality of its products. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. Retrieved from https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. Switch brands strategies McDonalds uses by reading this article they spend a total of $ 6 billion revenue. 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Chicken ala carte in KFC cost RM13.90 including the 20 cents of plastic bag, McDonalds... In Southern Africa with the second highest GDP of all African countries in 2017 fast-food companies have been duking out... Provide training to their customers smaller chains over the years food chain original, albeit slightly.... Mcdonalds and Burger King, Wendys has superior products with higher prices the modern customers who are conscious! All African countries in 2017 through franchisees long term, McDs has also managed large! Scale from 0 to 10, how likely are you to recommend working at KFC to a statement the! Boomer customers of KFC rate kfcs brand as # 130 on the burgers and fries form. The Burger King offers a Whopper ensuring that inventories are availed at the places... 75 burgers per day or 75 burgers per day or 75 burgers per day or 75 burgers per.. Are same but KFC meal is much more cheaper than Texas chicken to its! 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