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). 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. ensure the integrity of our platform while keeping your private information safe. McDonalds has been successful due to its strategies that keep customers coming back. Green technology and green products communities will be interested to know whether products that are supplied by both McDonalds and KFC through their supply networks meet the concerns of environmental protection. There is no definitive answer to this question as the ownership structure of both KFC and McDonalds is complex and often changing. 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. One major source of competitive advantage for McD is its extensive global presence. 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. If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. These three different strategies are cost leadership, differentiation, and focus. According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. The lifestyle around here has changed in so many ways from when our parents were children. McDonalds Business Strategy and Competitive Advantage. KFC China tends to introduce more new products than its competitors (Jeon et al. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. This observation suggests that the main strategy of success for McDonalds is to use its people to deliver services at outstanding high service rates so that customers do not waste their time waiting for services since such a move undermines the purpose for which fast-food restaurants are established. The number of baby boomer customers of McDonalds is also large. Barnett, M. 2010, Colonel Sanders New Modern Army of Outlets, Marketing Week, 4 March, pp. Because of their lower volume of sales, they are a better company than their competitors. McDonald's Competitive Advantage. for only $16.05 $11/page. Can they constitute good examples of corporate citizens in the US fast-food industry? Indeed, both organisations have some existing loyal customers who must be supplied with products and services. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. KFC focused on popularisation of chicken in a market that was dominated by hamburger consumers. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). If really want to compare, the menu of KFC is much more healthier then Texas Chicken. KFC competes against McDonalds the most. Upon noting the various sustainability problems in the supply of raw material and finished products, McDonalds and KFC have now focused on developing organisational policies for enhancing their corporate citizenship. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. 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. 1350-1358. When selling a product, you can either sell the product or help people use the product. 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. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. 25 no. Next, is the their Menu. However, McDs has continued to grow its presence in the other significant markets too. 1 What are the competitive advantages of KFC? 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 also sells their own specialty coffee under the brand name McCafe. It also uses digital channels to collect customer feedback and to address complaints and issues. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. McDonalds is constantly serving their customers since 1955. 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. 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. The fast food industry is highly competitive. Such legal provisions have the impact of raising the cost of running the business of both organisations. KFC was initiated in 1930. Who owns McDonalds restaurants? The database is updated daily, so anyone can easily find a relevant essay example. A large and varied product range is meant to cater to the taste and needs of various groups of customers. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. Consequently, it responded by collaborating with the organisation in the implementation of a zero tolerance deforestation programme. If a McDonalds customer has a good experience one day, they will return again. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. After a pandemic, the fast-food industry will be unable to survive for at least a year. McDs is continuously evolving its menu to meet its customers needs and choices. Several brands like Starbucks have become famous by focusing exclusively on customer service. Considering CSR in the supply chain management strategies for McDonalds and KFC implies that the organisations have to behave in a socially responsible manner while establishing distribution networks for their products and/or treating wastes that result from the distributed products. There 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. Thus, the KFC maintains its competitive advantage from its inimitable resources. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. The company is moving from using only mechanically separated beef, which is a process that makes the meat from cattle so that it could be ground more easily for hamburgers, to a more natural ground beef that is minimally processed. Are KFC and Taco Bell competitors? KFC is well-known for its fried chicken, which is made from their own Manipulation is a powerful tool as it can be easily misused to benefit the individual or organization who uses it, while furthering harming the people who are subjected to its detrimental effects. Many businesses use cross-selling to maximize sales. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! KFC ranks second in terms of CEO Score, trailing only UPS. This concern made the company engage in partnership with EDF (Environmental Defence Fund) in the 1990s. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. (2021) 'McDonald's and KFC Corporate Responsibility'. They strive to produce high-quality products, services, and processes. For example, KFC offers a $5 Fill Up meal which includes a chicken sandwich, a drink, and a side. Brand equity is also a major source of advantage for a fast food brand. This process has the aftermath of reducing carbon prints for many organisations. Thirdly, is their ranking and sales volume. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. McDonalds is a famous fast food brand with operations around the world in more than 100 countries. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. KFC (also known as Kentucky Fried Chicken) is a global chicken restaurant brand. You cannot copy content from our website. (your Full Guide), Why Is Mcdonalds So Cheap? 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. They also IvyPanda. They offer hamburgers, french fries, breakfast menu items and many more. While these fast-food giants have a So in this comparison, KFC is much more cheaper then Texas chicken. Over three million takeaways are discarded in the United Kingdom each day. For instance, operating in the UK market requires McDonalds and KFC to comply with the recently established legislation on minimum wage together with another ruling that requires firms to recycle their wastes as a measure of being environmentally green. 2010, The Quest for Sustainability, Supply Chain and Logistics Management, vol. McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. It also encompasses coordination and integration of flow of materials among organisations. Consequently, unlike McDonalds, it found no need for talking about it. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. This is one of the hallmarks of McDonalds success. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. We`ll do boring work for you. Operating in an environment of criticism concerning McDonalds degree of sustainability of supply chains makes it pursue various success strategies. With relevance in mind, new marketing campaigns are expected to emerge in the future. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. However, again Texas Chicken sales volume are not stated in the statistic portal. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. When McDonalds restaurants see donations in boxes, they collect the donations and give away the donations to Ronald McDonald Houses to help children with serious illnesses. They will release out various kind of food according to the season. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. He further asserts that it has incredibly lagged behind in terms of mass communication of its plans for enhancing sustainable supplies by investing in CSR. Richard and Maurice, McDonalds, on the other hand, is known for its high-quality food and excellent customer service. In addition, they offer a seasonal and regional menu option. 14 no. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. McDonalds competitors in the United States and the United Kingdom are also direct competitors. KFC and Taco Bell are both competitors on a number of levels. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. Other issues that have been considered in the paper in relation to sustainability of McDonalds and KFC supply chains include effects of strategies of supply chain on the environment, especially with reference to the need to produce green products to ensure protection of the environment. McDonalds strategy is to differentiate itself through efficiency and quality. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. You should have an apostrophe before the apostrophe in the word system. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. Other strategies include focusing on developing healthy meals. The companys menu and infrastructure provide a high level of service. According to the most recent data, as of July 30, 2021, the companys market cap was $52.3 billion, and its share price was $1863. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. Yaziji, M. & Doh, J. 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). With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). Furthermore, comparing the sales volume part, McDonalds sales volume is about 22.82 billion USD in 2017 and the sales volume of KFC is just about 4.2 billion USD in 2016 (The Statistics Portal). 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). 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. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. The subject is later compared with approaches that are deployed by KFC and McDonalds to enhance good corporate citizenship with reference to their supply chains. 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