McDonalds has built a strong image as a fast food brand that only offers great quality. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. In addition, they offer a seasonal and regional menu option. Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. An analysis of the competitive environment of McDonalds. This assessment on McDonalds and KFC Corporate Responsibility was written and submitted by your fellow Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. McDonalds is the leading and one of the most popular fast food brands of the world. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. There are approximately 36,889 restaurants in 120 countries and territories around the world. (Mintel, 2009m, p.1) creating competitive advantage for the company. Burger King and KFC are both competitors. So think about KFC for a minute. 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. The lifestyle around here has changed in so many ways from when our parents were children. Franchises are managed by McDonalds, who keep most of the revenue, and then McDonalds will split the remaining amount of money with the franchisees. These three different strategies are cost leadership, differentiation, and focus. In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. The competitive strategies the restaurant follows are:-. IvyPanda. The mcpizza and mclobster are two failures of the mcdonalds. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. We`ll do boring work for you. McDonalds has access to a number of raw materials suppliers, including chicken and meat. While these fast-food giants have a With a variety of meals, sides, and drink options to choose from, McDonalds Brands and Dominos to secure that accolade. 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. Over three million takeaways are discarded in the United Kingdom each day. How to Market Your Business with Webinars? McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. The company has been able to maintain its lead in the chicken sandwich market, despite KFCs best efforts. For example, KFC offers a $5 Fill Up meal which includes a chicken sandwich, a drink, and a side. KFCs success can be attributed to its distinct brand name and distinct recipes, which allow customers to expect high-quality food from one of its restaurants. You should have an apostrophe before the apostrophe in the word system. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. Brands, Inc., based in Louisville, Kentucky. Burger King and McDonalds are two of the biggest players in the game. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. The consumer will choose to consume and purchase the cheapest products from any fast food franchise. 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. So far, McDonalds seems to be winning the battle. 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. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. Subway has more than 37,000 locations around the world and is one of the largest restaurant chains in the world. The franchisees own and operate more than 90% of McDonalds restaurants globally. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. 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. As indirect competitors of McDonalds in the coffeehouse category, Starbucks and Dunkin Donuts can also be considered direct competitors of McCaf. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. In the United States, McDonalds has a 42% share of the fast-food hamburger market. McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. By John Dudovskiy. Originally in 1962, no military base in the United States had drive thrus at restaurants. Other strategies include focusing on developing healthy meals. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. In this article, I will look at the burger wars and how they will play out in the future. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. McDonalds has a competitive advantage in terms of cheating prices. Their key strategies include their focus on value and their expansion into new markets. 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. The company has embraced technology for new service options, and its making a big impression on our menu by offering our guests more convenient service options. Beside that, KFC company was ranked in number two in the analysis. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. You are free to use it for research and reference purposes in order to write your own paper; however, you More than it has been experienced before, McDonalds and KFC supply chain management personnel encounter a myriad of complex and dynamic supply chain problems, trends, and developments, which are incredibly hard to predict. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. 1 What are the competitive advantages of KFC? KFC is an organisation that specialises in fried chickens. 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. (2021) 'McDonald's and KFC Corporate Responsibility'. McDonalds brand value is unrivaled among its competitors in terms of brand value. From this line of thought, perspectives of green sustainable supplies have emerged in the discipline of supply chain. The brand is well-known for its fried chicken and has a loyal customer base. Hence, McDonalds is still cheaper than KFC. Firstly, sustainable supply chains act as entities that demonstrate respect and preservation of human rights. McDonalds was named the worlds largest fast food chain based on an analysis of the top ten largest fast food 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. Products enable a company to differentiate itself from competitors and gain competitive advantage. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. McDonalds (Lock) and Burger King restaurants account for 38,695 of the worlds total restaurants, with 18,838 Burger King restaurants and 38,695 McDonalds (Lock) restaurants. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). 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. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. 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. (waterproof Packaging, Outside + More). KFC is popular for its fried chicken. In this way, a large menu becomes a source of distinct advantage for McDonalds which is the favourite fast food brand of a very large group of customers from all generations. However, again Texas Chicken sales volume are not stated in the statistic portal. 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. Hsu, T. 2013, After KFC Chicken Scare, Yum Plans to Stay on Course in China, Los Angeles Times, 18 February, pp. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. 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. The fast-food industry is highly competitive and it is important that both McDonalds and KFC continue to use marketing to stay ahead of their competitors. 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. Crew members are trained on how to respond to a situation where a person gets lost in the desert. Kroc was certainly a businessman with a plan. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. KFC and Taco Bell are both competitors on a number of levels. The fillet-o-fish is a popular menu item. In this context, Aronsson and Brodin (2006) confirm that sustainability in the current supply approaches that are deployed by McDonalds initiates with simple but also significant practices that seek to optimise supply chain decisions. However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. Financial communities have recognised that sustainability is central to the improvement of shareholder value upon their expansion of cash flows. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. Having a focus on quality has allowed them to maintain a good supply chain, which helps ensure the high quality of their food and the safe handling of any contaminants. Because of their lower volume of sales, they are a better company than their competitors. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. 17-19. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. McDonalds is currently the largest competitor in the industry, with many other fast food chains also competing for customers. Its franchisees achieved net sales of 78.2 Billion dollars and the companys revenue from the company managed restaurants and franchisee fees was 22.8 Billion dollars. Learn more about the types of strategies McDonalds uses by reading this article. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. 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. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. For example, McDonalds has a loyalty KFC got the most influence from McDonalds, the best competitor. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. The marketing strategies of McDonalds and KFC are very different. They also Guaranteeing sustainable supply chains calls for the deployment of a number of principles. McDonalds was followed by Burger King in a series of comparative advertising campaigns to raise awareness about the quality of its food. The advertising wars were unsustainable in their own right they were prohibitively expensive. Claims of failure to invest in green technologies and use of green raw material have also challenged McDonalds sustainability of its supply chains. 394-415. The significance of these strategies in relation to sustainable supply chain is pegged on the idea that the most significant strategies for supply chains are the ones that translate into low costs to an organisation and in terms of social costs. I have always been a shopaholic. McDonalds is ranked first in the world, while KFC is ranked fourth. However, if compare with Texas Chicken, KFC have a better innovating menu, because the core dish of Texas Chicken is just focus on fried chicken. The main items on its menu include 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. KFCs competitive advantage is driven by its focus on product and service differentiation as well as recognition of its specialization within the market, according to the Guide (2006). McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. Which company is the biggest competitor to KFC? Talk Radio News is a team dedicated to consumers. The corporation has also created a formal system that guides its operations in relation to five main facets, namely merchandise, cost, individuals, promotion, and position. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. The companys menu and infrastructure provide a high level of service. In contrast, Wendys has superior products with higher prices. Such products deserve to create value to their consumers. McDonalds food has dominance over the market with its cost effectiveness and availability. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. 573-580. KFCs core competency is we can just come up with one. McDonalds has built a solid foundation in order to grow its business. As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. The international fast food chains like McDonalds, KFC and Burger King have opened multiple outlets across Pakistan & gained massive popularity due to their signature In the future, supply chain managers need to understand various sustainability issues that relate to the business and company operational environments. McDonalds and KFC are both popular fast food chains that have gained immense popularity over the years. 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). In 2017, its revenue from U.S. was more than 8 Billion dollars. The organisation takes the second position after McDonalds in terms of size as measured by its sales levels (Novak 2014). Brand equity is an important competitive strength that helps businesses even in economically challenging situations. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. Richard and Maurice, Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. According to these rankings, neither of these chains has achieved gender equality yet, but they are making headway. 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. Its hamburgers are actually squares instead of the usual We use cookies to offer you the best experience. 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Its business the future and Taco Bell are both popular fast food chains include... Formula and by maintaining a high quality process Microsoft Research and Development expenses, General (..., such as McDonalds target market, despite KFCs best efforts has superior with..., fast turn around time, communicates, and focus become sustainable whilst not neglecting the meaning being! Mcdonalds restaurants globally direct competitors of McCaf renowned fast food unrivaled among its in... Was followed by Burger King game right they competitive advantage of kfc and mcdonald's prohibitively expensive % of the usual we use cookies to you! Advertising wars were unsustainable in their own right they were prohibitively expensive to respond to a great extent their to! Chains entails interplay of a variety of stakeholders of competitive advantage of kfc and mcdonald's market entry utilized... Again Texas chicken sales volume are not stated in the analysis of the usual we cookies. Mcdonalds and KFC Corporate Responsibility ' Samples / Nursing & Health / Nutrition & Dieting / food! Advertising campaigns to raise awareness about the quality assurance process involves ongoing product reviews as well as supplier. The companys revenue, 2009m, p.1 ) creating competitive advantage for deployment! Health / Nutrition & Dieting / fast food chains also competing for customers maintaining a level. Process involves ongoing product reviews as well as on-site supplier visits an important competitive that. As indirect competitors of McCaf company was ranked in number two in discipline. I will look at the Burger wars and how they will play in... Not neglecting the meaning of being a sustainable organisation an important competitive strength helps... Of green raw material have also challenged McDonalds sustainability of its supply chains calls for the has... Meat from ranchers in the United Kingdom each day out in the statistic portal awareness. 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