If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. Targeting children is seen as a form of social engineering. In this article, One major source of competitive advantage for McD is its extensive global presence. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. 10-11. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. However, apart from food, it has all focused on customer service. KFC is well-known for its fried chicken, which is made from their own blend of secret spices, which cannot be easily imitated by any one else. Additionally, McDonalds customer service standards are among the highest in the fast food industry. Each of these gases contributes a given proportion to global warming. A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. Quality, service and cleanliness are always important, but in this case, good value is more important. What are the competitive advantages of KFC? It also operates within the fast-food industry. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow However, Texas Chicken company was not listed in the rank in the analysis. 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. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. Burger Kings success can be attributed to one of its primary focuses on value for money. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. The lifestyle around here has changed in so many ways from when our parents were children. Within the last four decades, Americans have become large consumers of fast foods. The rivalry between McDonalds and Burger King is a classic example of business. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. Burger King uses social media to launch new products and track customer feedback. IvyPanda. (waterproof Packaging, Outside + More). Why is KFC the best fast food restaurant? The Company has established and enforces high quality standards and product specifications. According to Michael Porter, there are three different way to sustain a competitive advantage. McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. There is no definitive answer to this question as the ownership structure of both KFC and McDonalds is complex and often changing. Target Market Analysis of Wendy's: How the Company Gains Its Customers, Specifications of the Analysis on the Nutritional Values of Mcdonalds Food, Burger King: Unethical Business Practices/scandals, Analysis of Wendys Ethical Issues Identity, Reputation and Image. However, it is generally accepted that the two companies are not owned by the same entity. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. 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. For example, Greenspaces criticism that soy farming poses a major threat to the Amazon forests in Brazil equally affected the sustainability of KFCs chain supplies. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. We`ll do boring work for you. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. We utilize security vendors that protect and Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. Apart from it working professionals who need a quick bite also rely on McDs for it offers the right food at the right prices. And in doing so, it reduces a lot of its risk, both in the short and long term. McDonalds has already built a strong brand image in the fast-food industry. (2021, August 2). A large and varied product range is meant to cater to the taste and needs of various groups of customers. 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. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. In 2017, its revenue from U.S. was more than 8 Billion dollars. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. KFC and Taco Bell are two private-owned fast-food chains that focus on chicken. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food chains. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. Fast-food organisations are cheap. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. McDonalds food has dominance over the market with its cost effectiveness and availability. 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. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. Is KFC healthier than McDONALDS? Crew members are trained on how to respond to a situation where a person gets lost in the desert. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. The success of the company led to the growth of the fast food industry and the company was named to Fast Food Hall of Fame in 2009. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. McDonalds has a competitive advantage in terms of speed of service. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. These include billboards, radio ads, and digital ads. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. The fillet-o-fish is a popular menu item. The competitive strategies the restaurant follows are:-. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. 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. 7 How is KFC different from the rest of the world? PRIZES FOR THE GRAND PRIZE WILL BE R50 000. They are the leaders of the industry and provide training to their franchisees. They will release out various kind of food according to the season. McDonalds strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. View this and more full-time & part-time jobs in According to a recent Business Insider report, KFC is by far the most popular restaurant chain in China, and it is not the same as the American brand. McDonalds food and coffee business also competes with Starbucks, Dunkin, and Tim Hortons. As a result, they can become market share leaders in the industry. 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. Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. They want their food to be good in terms of quality and low on calories. professional specifically for you? 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. How does McDonalds operate in a monopolistic monopolistic market? Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. It is because apart from helping them build higher customer loyalty and driving customer retention rate high, it also helps the business maintain a strong image and grow its popularity. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. These three different strategies are cost leadership, differentiation, and focus. It is essential to keep the customers engaged and retain them so that they do not switch brands. To resolve this stalemate, the deployment of sustainable supply chain strategies is critical. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. 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. Brand equity, food quality, customer service, in-store environment as well as marketing are all important to building higher customer loyalty than your competitors. 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. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. 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. 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. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). To compete effectively against McDonalds, it is important to have a clear understanding of their strengths and weaknesses and to develop a strategy that takes advantage of their weaknesses while countering their strengths. While its true that Ronald McDonald houses provide meals for families of seriously ill children, they also provide lodging for families of children with life threatening illnesses. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. 2, pp.117-127. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. If you grow your own food, you can control quality better. Please note! Need a custom Assessment sample written from scratch by The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. The companys menu and infrastructure provide a high level of service. They will have more seasonal menu and promotion such as recently FIFA World Cup they had released Rio series of menu set, Durian season come out with durian McFlurry, CNY with Prosperity set, Mix and Match with cost only RM 5.50 one set and now with Mexicana Chicken burger. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. We use cookies to ensure that we give you the best experience on our website. For instance, both organisations are immensely concerned with their environmental impacts. From Happy Meals to Big Macs, McDonalds is a staple for the American diet. Wendys restaurants have over 6,800 locations worldwide. An important thing to realize is that the success of an icon is not limited to the business. McDonalds has over 34,000 locations in more than 120 countries, making it one of the worlds most popular fast food restaurants. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. More than R100 000 in prizes have been distributed to winners. for only $16.05 $11/page. The company focuses on making the supply process as efficient as possible. 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 a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. The training process for McDonalds is that they ask, prepare, try out, and follow up. The success of McDs can be attributed to several factors including food quality, menu diversity, flavour, customer service and the ability to adapt to fast changing consumer trends. McDonalds uses a very rigorous advertising strategy, so they spend thousands of dollars every minute, and they are very well rewarded for it. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. 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. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? KFCs competitive advantage is its strong brand recognition. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. 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 means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. Which company is the biggest competitor to KFC? KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. McDonalds has always tried to achieve higher customer satisfaction. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. Excellent! The idea is to give customers a more natural product. Next, is the their Menu. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. Yum Brands owns Taco Bell, KFC, and Pizza Hut. 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). Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. They also aim to provide good quality food. While these fast-food giants have a The QSR industry has grown and is populated by a very large number The main purpose of McDonalds is to give its customers the best possible value for their money. McDonalds has a competitive advantage in terms of cheating prices. McDonalds was followed by Burger King in a series of comparative advertising campaigns to raise awareness about the quality of its food. 2, pp. McDonald (1st restaurant). Amid undergoing various corporate transformations in a bid to establish a competitive advantage, KFC has not gone without challenges that are articulated to the need to enhance sustainability in its supply chains. Fried chicken is the only main course offered at Texas Chicken. Leclerc, Y. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. McDonalds is ranked first in the world, while KFC is ranked fourth. One major source of competitive advantage for McD is its extensive global presence. It also provides comfort for children as they recover from serious sickness or diseases. One of McDonalds competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. (Mintel, 2009m, p.1) creating competitive advantage for the company. Talk Radio News is a team dedicated to consumers. Monopolies can also reduce competition and stifle innovation. 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. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). Here we can clearly see that the branches of Texas Chicken in worldwide is not as much as KFC and McDonalds since Texas Chicken just have their first branches in Malaysia in 2013 (Texas Chicken History) until now Texas Chicken in Malaysia just five years, so Texas Chicken dont really have so much people familiar and not much people have a favour on Texas Chicken due to unfamiliar. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. 1982 April 29th McDonalds first join Malaysia market (Pui, 2017) and now they already have about 271 outlet in Malaysia and they also estimated that they will have about more 500 outlet in Malaysia by the years of 2020 (Wong, 2013). KFC (also known as Kentucky Fried Chicken) is a global chicken restaurant brand. Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. And follow up by opening new outlets across the globe difficult to their... 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