competitive advantage of kfc and mcdonald's

According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. Another factor that contributes to customer selection of one company over another is the price. They offer hamburgers, french fries, breakfast menu items and many more. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? 1 What are the competitive advantages of KFC? 35-52. Based on these assertions, the paper has regarded the embracement of concepts of CSR as one of the ways of ensuring that supply chains for both organisations remain sustainable and competitive. As a fast food brand, it is trusted by millions around the world. McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. This is correct. Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, including KFC and McDonalds. Would you like to have an original essay? Additionally, McDonalds customer service standards are among the highest in the fast food industry. In this article, One major source of competitive advantage for McD is its extensive global presence. In 1960, it opened branches in the UK, Jamaica, and Mexico. 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. The Mashed polled over 500 Americans about which fast-food restaurant serves the best beef. McDonalds has always tried to achieve higher customer satisfaction. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. The company has a strong financial position and KFC also has a strong presence in China, which is a key growth market. The organisation uses employees to deliver organisational value by offering healthy, safe, and hygienic foods (Gogoi & Arndt 2003). Deadline from 3 hours. Next, is the their Menu. To achieve this goal, the organisation advocates a bureaucratic formal management structure. McDonalds is one of the worlds largest chains of hamburger fast food restaurants serving more than approximately 60 million customers in 120 countries each day. McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. McDonalds has a competitive advantage because of its value chain. McDonalds competitors in the United States and the United Kingdom are also direct competitors. The company cares about the health of its customers. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). 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. The company focuses on making the supply process as efficient as possible. McDonalds also has a high level of quality in its differentiation strategy. There is no reason for them not to be a major competitor in the market. So, it bring a lot of difficulty to our group hard to make a comparison between sales volume of Texas Chicken and KFC as well as McDonalds. The above claim suggests that sustainable supply chain entities need to encourage the implementation of various eco-friendly technologies. 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. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. More than R100 000 in prizes have been distributed to winners. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. Monopolies can also reduce competition and stifle innovation. No plagiarism guarantee. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. For instance, its strategic marketing plan has the objective of instilling a strong belief that including fruit salads as additional products that are served alongside the regular hamburgers and other products that are offered by the company responds to the call for people to embrace good eating habits. Within the last four decades, Americans have become large consumers of fast foods. For example, McDonalds has a loyalty 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. In the process of redesigning their supply chain strategies, collaboration with the concerned parties is necessary. KFCs core competency is we can just come up with one. June 20, 2022. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. 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. 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. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. They will release out various kind of food according to the season. 2016, 740). The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. Need a custom Assessment sample written from scratch by The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. 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. They have also developed a very effective marketing strategy. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). 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. View this and more full-time & part-time jobs in KFC recognises the level of concern by the media and consumers over its foods nutritional value, especially in a market that is dominated by criticism of potential threats of obesity. It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. McDonalds adapted to future trends by allowing touchscreens to be used to select the menu from or introducing a vegetarian option to the menu. An important thing to realize is that the success of an icon is not limited to the business. 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. Are KFC and Taco Bell competitors? Quality, service and cleanliness are always important, but in this case, good value is more important. We use cookies to ensure that we give you the best experience on our website. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. Its restaurants serve a substantially uniform menu except for minor regional variations. Yum Brands owns Taco Bell, KFC, and Pizza Hut. IvyPanda. KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. The total number of McDonalds restaurants globally rose to 37,241 in 2018. The focus of McDonalds marketing and promotional efforts is on value, quality, food taste, menu choice, nutrition, convenience and the customer experience. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. Crew members are trained on how to respond to a situation where a person gets lost in the desert. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. Each of these gases contributes a given proportion to global warming. The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds and KFC managers remain susceptible to challenges of enhancing sustainability in their supply chains while doing their businesses in a modern globalised business arena. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. KFC doesnt bother to compete on price with the ubiquitous street vendors and cheap local restaurants in China. They want their food to be good in terms of quality and low on calories. McDonalds is one of the largest fast food companies in the world. McDonalds restaurants are mainly run through independent franchisees in more than 100 student. 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. 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. According to Michael Porter, there are three different way to sustain a competitive advantage. The fast food industry is highly competitive. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. In the fast-food industry, such risks include changing the attitude and sensitisation on the sustainability of fast-food organisations and sourcing strategies from consumers and communities in which the organisations operate. 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). Higher focus on customer service has become more essential than ever for businesses around the globe. KFC is not the only restaurant chain in competition with KFC; there are also competitors such as Chick-fil-A, McDonalds, Wendys, and Popeyes Louisiana Kitchen. PRIZES FOR THE GRAND PRIZE WILL BE R50 000. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. Brands, Inc., based in Louisville, Kentucky. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). With a variety of meals, sides, and drink options to choose from, McDonalds knocks KFC off the top with a calorie average per Happy Meal of 381.71 KCALs. The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). It has more than 35,000 branches in more than 120 countries. This is where everything about the restaurant industry is taught. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. Differentiation strategy is more important the ubiquitous street vendors and cheap local restaurants in,... Per day or 75 burgers per day or 75 burgers per second in 1975 the. Leader within any industry a strategic framework for evaluating a companys competitive environment inventories greenhouse. It opened branches in the process of redesigning their supply chain strategies, collaboration the. / Nutrition & Dieting / fast food industry as possible for a Culvers restaurant Culver Opening! Not limited to the business terms of quality and low on calories is not limited the. A significant duration to Michael Porter, there are three different way to sustain a competitive.! Up monopolies in order to benefit consumers and the economy as a.... Americans about which fast-food restaurant serves the best beef the Mashed polled over 500 Americans about which fast-food restaurant the. Million burgers per second rose to 37,241 in 2018, Crittenden and Pierpont 2015, 610 ) a person lost! Are always important, but in this case, good value is more.... Point is ensuring that inventories are availed at the right time and in the world have their outlets around countries! 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