McDonalds may have to reconsider its product quality as customers become more health-conscious. Burger King, the worlds fourth largest fast food chain, has steadily grown throughout the world. Yum Brands, a subsidiary of KFC, which generates more than half of its sales revenue from the Chinese markets, responded by saying that the scandal had longer effects than the company had thought (Hsu 2013). If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. Subway, the worlds largest restaurant chain in terms of size, has seen sales fall since 2012. Independent franchisees own and operate more than 90% of McDonalds restaurants around the globe. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. The fillet-o-fish is a popular menu item. KFC is well-known for its fried chicken, which is made from their own Its why the brand has retained heavy focus on food quality, in-store environment and customer service. McDonalds offline marketing strategy focuses on opening as many restaurants as possible in relevant locations to drive sales. Such products deserve to create value to their consumers. This is one of the hallmarks of McDonalds success. The main items included on its menu are 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. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. It also provides comfort for children as they recover from serious sickness or diseases. 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. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. McDonald is always successful in sustaining a good image in hearts of its customers. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. 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. The companys menu and infrastructure provide a high level of service. 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. Customer-focused approach brings advantages to KFC. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. 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. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. job in Hastings, MI. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. This makes sense. 2021. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. Pizza, according to a report, is one of the most unhealthy foods on the planet. According to Michael Porter, there are three different way to sustain a competitive advantage. The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. For example, the Greenspace, a green organisation, criticises the corporation by claiming that Brazilian soy farming, which is deployed to feed chicken at McDonalds, constitutes a major threat to the sustainability of the Amazon rainforest. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). 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. Consequently, unlike McDonalds, it found no need for talking about it. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. It is why McDs spends a significant sum on marketing every year. McDonalds has over 31,000 locations in 119 different countries, making it the worlds largest restaurant chain. KFC is a subsidiary of Yum! Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. I believe were going to see a new chapter in the Burger Wars in the coming years. McDonalds is ranked first in the world, while KFC is ranked fourth. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. A pancake mix that resembled Hungry Jacks was registered for by Pillsbury, which was the company that invented Hungry Jack. According to CEO Score, KFC ranks second in terms of comparable CEO performance. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. Although the golden arches are a trademark of the McDonalds Corporation, its been said that the company has used many different pictures and logos of those red- and yellow-striped arches since it began. Does KFC have any core competences are any of these distinctive better than the competition )? 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. If you grow your own food, you can control quality better. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. Guaranteeing sustainable supply chains calls for the deployment of a number of principles. We utilize security vendors that protect and 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. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. This plan is pivotal in helping to resolve various challenges that relate to supply chain management in business environments that are characterised by changing trends because of globalisation, intensive competition, and the need for securing and protecting the environment within which the organisations are established. ), What Time Does Mcdonalds Serve Lunch? By continuing, well assume you agree with our Cookies policy. 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. 2, pp.117-127. Indeed, considering the two corporation approaches to sustainability, sustainable supply chain is a function of all persons and agencies that are involved in the whole supply chain until products of an organisation are consumed and/or until the wastes are disposed. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). KFCs sources of competitive advantage. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. IvyPanda. The Wendys Company is a company engaged in the operating, developing, and franchising a system of quick-service restaurants. (2021, August 2). for only $16.05 $11/page. (10 Reasons Why), Costco Complaints (contact Details, How To Make A Complaint, Are They Taken Seriously + More), Does Usps Leave Packages In The Rain? It helps retain customers as well as attract new ones and manage a healthy bottom line. KFC also made a commitment to being environmentally friendly by using recycled materials and using antibiotic-free chickens. The most preferred direction is the one that will ensure that supply chain approaches become cost effective to the extent of making an organisation experience competitive advantage. McDonalds restaurants are mainly run through independent franchisees in more than 100 Talk Radio News is a team dedicated to consumers. These critical aspects help in building the competitive advantage of an organisation. McDonalds is most popular for its diverse menu. So the idea was, make the military happy, give them food, and make it a nice safe experience. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. KFC struggles to address issues that influence the sustainability of its supply chain. Franchising form of new market entry is utilized within McDonalds business strategy to a great extent. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. 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. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. To establish a balance of all the interested parties in the corporations products and services, they need to increase their communication and collaboration efforts to ensure that their supply chains remain sustainable. McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. 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 Next, is the their Menu. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. Brand equity, food quality, customer service, in-store environment as well as marketing are all important to building higher customer loyalty than your competitors. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. We will write a custom Assessment on McDonalds and KFC Corporate Responsibility specifically for you for only $16.05 $11/page. IvyPanda. KFCs core competency is we can just come up with one. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. In the United States, McDonalds has a 42% share of the fast-food hamburger market. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). This strategy is driven by health professionals increased emphasis that fast foods are associated with obesity and its associated ailments, including hypertension and diabetes. Yaziji, M. & Doh, J. Therefore, the business will increase. In contrast, Wendys has superior products with higher prices. 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. They use four steps of training for each employee. The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. It has also switched from packaging using cardboards to large-scale packaging using biodegradable papers. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. This is correct. One major source of competitive advantage for McD is its extensive global presence. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. However, apart from that it has some other sources of competitive advantage too. Many businesses use cross-selling to maximize sales. A competitive analysis is a review of the strengths, weaknesses and strategies of your companys competitors. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. Global presence ( Crittenden, Crittenden and Pierpont 2015, 610 ) registered for by Pillsbury, which is by. More health-conscious serious sickness or diseases raw materials ( Ciliberti 2009, KFC enjoys a global. Team dedicated to consumers chain, has steadily grown throughout the world economy recovers i... 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