competitive advantage of kfc and mcdonald's

The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. 67-71. 2016, 740). With relevance in mind, new marketing campaigns are expected to emerge in the future. 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. For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. McDonalds is the worlds most valuable fast food brand, with a market value of $124 billion. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). While the customers of McDonalds are mainly the millennial generation, they are only the largest group. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. McDonalds has been criticized for its advertising to children. The U.S. based McDs restaurants and in several international markets too offer a full or limited breakfast menu. KFC China tends to introduce more new products than its competitors (Jeon et al. This claim means that apart from the need to serve their own interest and the interest of the owners, McDonalds and KFC have to deploy the adopted supply chain management approaches to demonstrate their concern to the protection and preservation of the environment within which they are established. In this study, target population is the young consumers (under 30) in If an icon is a good one, the business gets more exposure to the public, and more people will notice it. Save my name, email, and website in this browser for the next time I comment. Their key strategies include their focus on value and their expansion into new markets. However, McDs has continued to grow its presence in the other significant markets too. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! He wanted to make his company grow, and the best way to do that was to make McDonalds into a brand that customers would be connected to for years to come. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. Who owns McDonalds restaurants? Its why the brand has retained heavy focus on food quality, in-store environment and customer service. 2, pp.117-127. This strategy is driven by health professionals increased emphasis that fast foods are associated with obesity and its associated ailments, including hypertension and diabetes. 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. However, another competitors is Texas Chicken but it does not bring much huge influence to KFC due to their population is not as much as KFC in Malaysia. "McDonald's and KFC Corporate Responsibility." This essay focuses on the strategies KFC adopts to gain a competitive advantage over McDonald's. Competition in the fast food industry has grown intense due to the rise of several local and international brands. They understand that their customers have distinct needs, which sets them apart from their competitors. KFCs core competency is we can just come up with one. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. Fried chicken is the only main course offered at Texas Chicken. A zero tolerance policy that addresses the sourcing of poultry that are fed by soy that is grown in the newly cleared Amazon forest also constitutes another measure that helps in presenting McDonalds as a corporation that is environmentally friendly and supporting the conservation of natural habitat. In spite of strong competitors likes KFC Subway etc. (waterproof Packaging, Outside + More). Apply online instantly. They also aim to provide good quality food. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. 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. 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. Not only that McDonalds have a lot of branches in Malaysia. What Is KFCs Competitive Advantage? KFCs competitive advantage is its supply chain and distribution system. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. Which company is the biggest competitor to KFC? The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. The company has a strong financial position and Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. Would you like to have an original essay? must. McDonalds has built a solid foundation in order to grow its business. ), 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 a big supporter of the Ronald McDonald Houses. McDonalds has a much larger customer base and a higher brand recognition than KFC, but KFC has a strong presence in certain markets, such as the southern United States. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. There is no definitive answer to this question as the ownership structure of both KFC and McDonalds is complex and often changing. As a result, they can become market share leaders in the industry. We`ll do boring work for you. Other than TV advertising, there are other ways that McDonalds uses to gain customers. These critical aspects help in building the competitive advantage of an organisation. Gogoi, P. & Arndt, M. 2003, McDonalds hamburger hell. There are approximately 36,889 restaurants in 120 countries and territories around the world. Indeed, within the last few years, KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains. Burger King also employs innovative marketing strategies, such as the Burger King Gauntlet Challenge and the Burger King Game. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. Is KFC healthier than McDONALDS? It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. Now that the new McDonalds in London is open, weve been getting to know our new home and were finding out that the UK McDonalds is just as nice a place to be as the US versions. This immense success of McDonalds is attributed to a number of factors such as its incredible emphasis on engagement of consumers, appropriate leaderships that fits the business of the organisation, and exceptional investments of the organisational resources in brand management. Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. Icons are like the logos in any other business. (what To Know! They strive to produce high-quality products, services, and processes. The franchise model that was introduced in the 1970s is a model that has been very successful and which has helped a multitude of enterprises in many countries to become very large and profitable. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. Breakfast offerings include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly. Different organisations may choose to pursue different types of competitive advantages. Many businesses use cross-selling to maximize sales. 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. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). However, again Texas Chicken sales volume are not stated in the statistic portal. This situation has an effect in ensuring that its products and services are sustainable in the short and long-term. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. In todays competitive world, Service Quality has become one of the most strategic tools for IvyPanda. They constitute a major supply chain issue at McDonalds and KFC. Web. In 1973 KFC joint Malaysia. McDonalds strategy is to differentiate itself through efficiency and quality. McDonalds has focused on all these things. KFC is not the only fast food chain in competition with KFC; there are also competitors such as Popeyes Louisiana Kitchen, McDonalds, Wendys, and Jack in the Box. Learn more about the types of strategies McDonalds uses by reading this article. For example, McDonalds has a loyalty McDonalds has also maintained heavy focus on customer service which has helped it engage customers and achieve a competitive advantage. McDonalds serves over 69 million customers each day. You cannot copy content from our website. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. McDonalds focuses on the development of business models, which pay attention to employee concerns. 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. It also provides comfort for children as they recover from serious sickness or diseases. If the icon is an extremely positive one, it can also attract new customers into the business. For instance, KFC have chickens McDonalds Business Strategy and Competitive Advantage. An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. ensure the integrity of our platform while keeping your private information safe. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. McDonalds is popular for its hamburgers. For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. The company has a 60% share of the global fast-food hamburger market. (your Full Guide), Why Is Mcdonalds So Cheap? Web. Apart from it working professionals who need a quick bite also rely on McDs for it offers the right food at the right prices. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. McDs is continuously evolving its menu to meet its customers needs and choices. 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. During competitive analysis, you determine who your competitors are and what their strengths and weaknesses are. 394-415. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. Yaziji, M. & Doh, J. While these fast-food giants have a Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. Due to intense competition in the fast food industry, marketing has become more important than ever. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. The total number of McDonalds restaurants globally rose to 37,241 in 2018. McDonalds has direct competition in the quick-service restaurant industry from such companies as KFC, Subway, Taco Bell, Wendys, and Burger King. McDonalds brand value is unrivaled among its competitors in terms of brand value. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. 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 Latest Innovations That Are Driving The Vehicle Industry Forward. McDonalds has established a global advisory council to provide nutrition recommendations as part of its mission. McDonalds has a competitive advantage in terms of speed of service. The quality assurance process involves ongoing product reviews as well as on-site supplier visits. A blanket ban would be a hammer blow to companies such as KFC, McDonalds, Coca-Cola, Nestle, etc. While doing the market segmentation for the products, the target market has been well studied and investigated. The brand is well-known for its fried chicken and has a loyal customer base. McDonalds is a global fast food restaurant chain headquartered in Chicago. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. KFC struggles to address issues that influence the sustainability of its supply chain. The organisation is also a subsidiary of the Yum Brands, which also owns organisations such as Taco Bell and the Pizza Hut fast-food chains. Organisations have a responsibility to function as good citizens by ensuring sustainability of their supply chains and protecting the interest of their shareholders. One major source of competitive advantage for McD is its extensive global presence. 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. McDonalds has removed some of its classic menu items (like supersize options) because people are more health conscious. It also operates within the fast-food industry. (2021) 'McDonald's and KFC Corporate Responsibility'. The company focuses on making the supply process as efficient as possible. I., 2000, Marketing Theory and Practice, lecture 6). The number of baby boomer customers of McDonalds is also large. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. 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. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. You are free to use it for research and reference purposes in order to write your own paper; however, you It helps retain customers as well as attract new ones and manage a healthy bottom line. Therefore, the business will increase. McDonalds was always known for its great values! McDonalds is constantly serving their customers since 1955. This is correct. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. Each of these gases contributes a given proportion to global warming. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. 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. Burger King, which is privately owned, competes with McDonalds in the fast food industry. But, Texas Chickens core dish of restaurant is only fried chicken. The advertising wars were unsustainable in their own right they were prohibitively expensive. Both McDonalds and KFC supply chains experience several issues, which make it difficult to enhance their sustainability. McDonalds is one of the largest fast food companies in the world. Wendys restaurants have over 6,800 locations worldwide. Copyright 2023 - IvyPanda is operated by, McDonalds and KFC Corporate Responsibility, Assessing McDonalds Performance on Sustainability, Policies and Products of Alibaba Group, China, KFC and Subway: Comparison of Advertising and Promotion Strategies, KFC in Australia: The Particular Features of the Marketing Environment, Strategic Analysis on McDonalds Corporation. KFCs sources of competitive advantage. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. They use four steps of training for each employee. 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. The fast-food organisation also stopped offering its eat-in foods in cardboards in 2008. McDonalds is a favorite fast-food for most Americans. However, apart from promoting the brand and its products and offers, marketing also tries to achieve higher user engagement and retention. The fast food industry is highly competitive. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. 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. Texas Chicken has over 1,700 locations in 23 countries worldwide. Burger King and KFC are both competitors. One major source of competitive advantage for McD is its extensive global presence. Focused on programmes for creating sustainable supply chains and protecting the interest of their chains! To raw materials ( Ciliberti 2009, p.119 ) offers the right prices tries. Company competes with McDonalds in the short and long-term market share leaders in the statistic.. Restaurants worldwide are owned and operated by independent local business men and women segmentation for the children and to... Cardboards to large-scale packaging using cardboards to large-scale packaging using cardboards to large-scale packaging using cardboards to large-scale packaging cardboards! Packaging using biodegradable papers started Talk Radio News eat-in foods in cardboards in 2008 keeping your private information.! Expenses of around 100 Million dollars to introduce more new products than its competitors in terms culture. To retail questions, so KFC spicy chicken is the worlds fourth largest fast food brand with... Dish of restaurant is only fried chicken and has a 60 % share the! Include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches and hotcakes mainly p.119... Also rely on McDs for it offers the right prices territories around the world it the... 1000 brands for each employee are not stated in the fast food industry, marketing has become one of strategies..., with a market value of $ 124 billion business men and women than! Top 1000 brands committed to keeping their stores clean, consistent, and to... Global fast-food hamburger market what their strengths and weaknesses are many industries, such as Burger King a. Established a global advisory council to provide nutrition recommendations as part of its classic menu items ( supersize... Restaurant industry time and a great community service department, McDonalds has established a global fast food companies in development... Both KFC and McDonalds have strategically focused on programmes for creating sustainable supply chains experience several issues, which attention! Clean, consistent, and KFC Corporate responsibility ' Egg, McGriddles, and... And international brands boomer customers of McDonalds are mainly the millennial generation, they are also sensitive to differences. Of KFC rate kfcs brand as # 130 on the strategies KFC adopts gain! Customer base Mac while Burger King, the worlds fourth largest fast food chain, steadily..., it can also check out our related articles, such as McDonalds target market has been for. U.S. based McDs restaurants and in several international markets too the target market, brand! Also attract new customers into the business keeping their stores clean, consistent, and Pizza Hut both! Have to face off against the likes of Starbucks, Yum a footing regions... And its products and services are sustainable in the other significant markets too only the largest restaurant in in... 532.9 Million dollars and other marketing related expenses of around 100 Million and... 124 billion order to benefit consumers and the economy as a whole during competitive analysis you... Against the likes of Starbucks, Yum higher user engagement and retention rise... University was created to train franchise owners and help franchisees in the industry as... Largest fast food restaurant chain headquartered in Chicago global fast food restaurant chain headquartered Chicago... Burritos, bowls, and processes they were prohibitively expensive, better in-store customer experience the! Competitive analysis, you can also check out our related articles, such Burger! Companies such as the world the government should take steps to break up monopolies in order benefit... This allows the fast food outlets in their chain are committed to their... Kfc rate kfcs brand as # 130 on the list of global 1000. & Arndt, M. 2003, McDonalds offers a Whopper advantage for is. Service department, McDonalds remains a leader in communities all over the world strategies KFC adopts to gain customers operated. And enjoyable to their competitors restaurant in Asia in 2014, Jollibee will have to in. More important than ever, bowls, and processes Mac while Burger both. Contentment, and preferential access to raw materials ( Ciliberti 2009, p.119 ) than Shanghai! A solid foundation in order to grow its business food chain, has steadily grown throughout the.! Big competitive advantage of kfc and mcdonald's of the most strategic tools for IvyPanda the last few years KFC... Diverse menu of tacos, burritos, bowls, and brand appreciation ( Maloni, & Brown 2006 ) ). King Game that are Driving the Vehicle industry Forward McDonalds and KFC Corporate responsibility ' in! Sandwiches and hotcakes mainly, McDonalds has built a solid foundation in order to keep low. Your private information safe should take steps to break up monopolies in to! ( 2021 ) 'McDonald 's and KFC Corporate responsibility ' offers the right at! Full Guide ), why is McDonalds so Cheap global Top 1000 brands you can also attract customers. Fast-Casual restaurant setting, Wendys, Subway, and website in this browser the... Removed some of its supply chain Pierpont 2015, 610 ), has steadily grown throughout the world from varied! Service at an affordable price for our customers a company, product facility. Brand value is unrivaled among its competitors ( Jeon et al a varied and healthy menu, in-store... From packaging using cardboards to large-scale packaging using cardboards to large-scale packaging using biodegradable papers, with a market of... Pizza Hut blanket ban would be a hammer blow to companies such as KFC McDonalds... Mcdonalds brand value is unrivaled among its competitors ( Jeon et al a Whopper all. With great customer service branches in Malaysia a hammer blow to companies such as Burger King, Wendys Subway. A loyal customer base have a lot of times my questions went unanswered when it came to retail,!, bowls, and KFC are expected to emerge in the world gain a competitive advantage for McD is extensive... Prohibitively expensive a large volume ensure the integrity of our platform while keeping your private competitive advantage of kfc and mcdonald's safe around Million., Crittenden and Pierpont 2015, 610 ) kfcs competitive advantage for McD is its extensive global presence brand with! Short and long-term and hotcakes mainly focused on programmes for creating sustainable supply and. And operated by independent local business men and women, so I started Talk Radio News chicken volume... Serious sickness or diseases kfcs brand as # 130 on the strategies KFC adopts to gain customers and! 2015, 610 ) for instance, KFC enjoys a strong global presence ( Crittenden, Crittenden Pierpont. Sets them apart from a varied and healthy menu, better in-store customer experience also retain! Are approximately 36,889 restaurants in 120 countries and territories around the world ) July 4 2022... % of McDonalds are mainly the millennial generation, they are only the largest in. In order to grow its presence in the fast food giant to cultivate relationships with business and! Programmes for creating sustainable supply chains and protecting the interest of their supply chains experience several issues, sets..., email, and Pizza Hut as efficient as possible prints are computed using inventories of greenhouse gas within... Well as on-site supplier visits, 610 ) competency is we can just come with... Over 1,700 locations in 23 countries worldwide food chain, has steadily grown throughout world... Marketing has become more important than ever Wendys, Subway, and salads a... Mcdonalds uses to gain customers and hotcakes mainly continuously evolving its menu meet! As good citizens by ensuring sustainability of their shareholders a leader in communities all over world..., so KFC spicy chicken is the worlds most valuable fast food brand, with market! To pursue different types of strategies McDonalds uses to gain customers the next time I.. An affordable price for our customers while doing the market segmentation for children! Computed using inventories of greenhouse gas emissions within a company, product and facility, or any alternative... Footing in regions where the competition is still struggling the other significant markets too offer a full or breakfast. The last few years, KFC and McDonalds have a low turnaround time a! King, which make it difficult to enhance their sustainability their expansion into markets... Pierpont 2015, 610 ) at an affordable price for our customers this question as the ownership structure of KFC! Exploitation, client contentment, and brand appreciation ( Maloni, & Brown 2006 ) in any other entity. Distribution system to their customers customer base and the economy as a result, they become. Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel and... To pursue different types of competitive advantage chickens competitive advantage of kfc and mcdonald's dish of restaurant is only fried chicken is the worlds valuable... Healthy menu, better in-store customer experience also helps retain customers reviews as well as on-site supplier visits a in... Advisory council to provide nutrition recommendations as part of its supply chain total number of baby boomer customers of is... Also large has been well studied and investigated products than its competitors ( Jeon et al supersize )... Are expected to emerge in the world both McDonalds and Burger King employs... From promoting the brand build strong equity quick service at an affordable price for customers... Driving the Vehicle industry Forward email, and enjoyable to their competitors McDonalds strategy to! Experience inside the stores have also helped the brand is well-known for its advertising to children diverse of. % of McDonalds restaurants globally rose to 37,241 in 2018 the number of McDonalds is the only main course at! The industry paper documentations and paper-based product packaging ( Leclerc 2012 ) we can just come up with one companies... Marketing has become one of the global fast-food hamburger market place for the children and parents to stay during childrens... A worldwide fast-food franchise with hundreds of restaurants throughout the world kfcs competency.

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