As a result, they can become market share leaders in the industry. Would you like to have an original essay? Brands and Dominos to secure that accolade. Other strategies include focusing on developing healthy meals. Can they constitute good examples of corporate citizens in the US fast-food industry? 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). Brand equity is also a major source of advantage for a fast food brand. TalkRadioNews is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com, Does Mcdonalds Have All Day Breakfast? 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. 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. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. More than R100 000 in prizes have been distributed to winners. McDonalds is popular for its hamburgers. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. KFCs top competitors include Wendys Company, Popeyes Louisiana Kitchen, Subway and Restaurant Group. Sunner became McDonalds official supplier in September 2014. KFC also has a strong presence in China, which is a key growth market. Thus, the KFC maintains its competitive advantage from its inimitable resources. KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. (2021, August 2). In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. The advertising wars were unsustainable in their own right they were prohibitively expensive. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. The two largest fast-food companies have competed fiercely for market share since the 1950s. The principles must be directly related to the concerns of people who consume the products. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). They also The Company has established and enforces high quality standards and product specifications. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. According to these rankings, neither of these chains has achieved gender equality yet, but they are making headway. Maloni and Brown (2006) also note regulatory directives compel organisations to conduct an analysis of how their products affect their operations. Choose your writer among 300 professionals! The two companies have been duking it out with aggressive marketing campaigns and menu innovations. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. By continuing, well assume you agree with our Cookies policy. While doing the market segmentation for the products, the target market has been well studied and investigated. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. It has quality centers around the globe which ensure that the high standards company has set are consistently met. 48 no. (what To Know! For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. Are KFC and Taco Bell competitors? McDonalds food has dominance over the market with its cost effectiveness and availability. Learn more about the types of strategies McDonalds uses by reading this article. McDonalds brand value is unrivaled among its competitors in terms of brand value. This figure escalated to $142 billion in 2006. 35-52. McDonald is always successful in sustaining a good image in hearts of its customers. The company offers a diverse menu of tacos, burritos, bowls, and salads in a fast-casual restaurant setting. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. Burger King and McDonalds are two of the biggest players in the game. So in this comparison, KFC is much more cheaper then Texas chicken. From Happy Meals to Big Macs, McDonalds is a staple for the American diet. Within the last four decades, Americans have become large consumers of fast foods. As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. This allows the fast food giant to cultivate relationships with business partners and establish a footing in regions where the competition is still struggling. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. Monopolies can also reduce competition and stifle innovation. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. 68 no. McDonald (1st restaurant). "McDonald's and KFC Corporate Responsibility." Adopting green strategies for supply chain management is not only a measure of ensuring sustainable supply chain management, but also a gauge of ensuring that an organisation behaves and acts in a socially responsible manner. 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. Web. Because of their lower volume of sales, they are a better company than their competitors. The restaurant will continue to strive for quality customer service. Which company is the biggest competitor to KFC? 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. (waterproof Packaging, Outside + More). Texas Chicken has over 1,700 locations in 23 countries worldwide. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. McDonalds has a competitive advantage in terms of speed of service. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. However, it is generally accepted that the two companies are not owned by the same entity. 3533-3543. Business Ethics 2014, Assessing McDonalds Performance on Sustainability. KFCs core competency is we can just come up with one. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). There are approximately 36,889 restaurants in 120 countries and territories around the world. The rivalry between McDonalds and Burger King is a classic example of business. Advertising is the most fundamental way KFC promote its products. After McDonalds continued to grow throughout the mid-1900s and beyond, franchising opportunities began to abound, and today, 93% of McDonalds restaurants are franchised. Save my name, email, and website in this browser for the next time I comment. KFC operates in the fast-food industry just like McDonalds. Out of these, only 3,133 were managed by the company and 34,108 by the franchisees. Such gases include methane, nitrous oxide, and carbon dioxide among others as defined by the Kyoto Protocol (The United Nations 2014). For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. 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 joint venture that has been going on for over fifty years. So the idea was, make the military happy, give them food, and make it a nice safe experience. In this way, the company has managed a strong supply chain which helps it manage high food quality and a tasty menu. Subway has more than 37,000 locations around the world and is one of the largest restaurant chains in the world. In its mission statement, McDonalds states that it focuses on people as most important resources that are available to enhance the success of its business objectives and goals (Wilhelm 2011). It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. In the process, it also has the ability to control everything about the supply chain from beginning to end. 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. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. 1 What are the competitive advantages of KFC? 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). 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. In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. PRIZES FOR THE GRAND PRIZE WILL BE R50 000. McDonalds has access to a number of raw materials suppliers, including chicken and meat. 1, pp. If these industries engage in monopolistic behavior, consumers may suffer because they will pay high prices, receive substandard goods, and have fewer options. KFC got the most influence from McDonalds, the best competitor. It has also managed a large supply chain to ensure the availability of good quality raw material. . McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. McDonalds understands how important convenience is for its customers, in addition to other aspects of their McDonalds experience. So think about KFC for a minute. They often result in excessive food wastes and accumulation of packaging waste. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. The Latest Innovations That Are Driving The Vehicle Industry Forward. 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. McDonalds is one of the largest fast food companies in the world. McDonalds was always known for its great values! In todays competitive world, Service Quality has become one of the most strategic tools for Amid this effort, McDonalds still experiences new challenges that relate to sustainability of its chain supplies. It was founded in 1940, it has been operating ever since 1948 where they opened their Burger King was founded by a farmer known as Keith J. Kramer and his wife's uncle Mathew Burns who gained the inspiration from another popular burger franchise known as McDonalds. Supply chain costs go beyond the costs of distributions of products, which are often reflected in the final prices of commodities and services. KFC was the first foreign fast food company that open their branches in Malaysia (KFC Malaysia). It also explains to its staff how to become sustainable whilst not neglecting the meaning of being a sustainable organisation. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. It is enjoying high customer loyalty and is in a position to achieve faster growth in future. The Wendys Company is a company engaged in the operating, developing, and franchising a system of quick-service restaurants. When conducting a competitive analysis of McDonalds, it is important to consider their strengths, which include their global brand recognition, their scale and their financial resources. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. Between 2004 and 2007, Burger King%27s net income grew by 2860%. Thirdly, is their ranking and sales volume. All of these have been successful for the company. It also operates within the fast-food industry. However, apart from food, it has all focused on 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. 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. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). McDonalds is also involved in volunteer programs where franchise owners and crew members volunteer their time and services. 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. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. Hence, inclusion of the product is a further indication of the companys flexibility to meet the need of its customers. Fried chicken is the only main course offered at Texas Chicken. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. In this article, I will look at the burger wars and how they will play out in the future. KFC is ranked third in terms of culture and fourth in terms of gender in a survey conducted by the Pew Research Center. KFC is an organisation that specialises in fried chickens. In Miami, James McLamore and David Edgerton opened the first Instagram-Burger franchise McDonalds responded in 1985 with a new burger, the McDLT, which was a direct copy of Burger Kings best-selling Whopper, but at a lower price. In contrast, Wendys has superior products with higher prices. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. IvyPanda. 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. In this study, target population is the young consumers (under 30) in Several brands like Starbucks have become famous by focusing exclusively on customer service. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. McDonalds is famous for its cheap, fast meals and their customers appreciate it. 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. The number of baby boomer customers of McDonalds is also large. The fast-food chain is popular for a number reasons. However, the company plans to increase the percentage of franchisee managed restaurants from 90 to 95% in near future. McDonalds is the leading and one of the most popular fast food brands of the world. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. In this question, employees Net Promoter score measures employee overall performance. They are the leaders of the industry and provide training to their franchisees. There is no reason for them not to be a major competitor in the market. 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. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. These three different strategies are cost leadership, differentiation, and focus. In the process of redesigning their supply chain strategies, collaboration with the concerned parties is necessary. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. 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. 2, pp.117-127. It also provides comfort for children as they recover from serious sickness or diseases. You are free to use it for research and reference purposes in order to write your own paper; however, you Every employee is trained in working tirelessly to keep a clean environment for all guests. It has more than 35,000 branches in more than 120 countries. McDonalds was followed by Burger King in a series of comparative advertising campaigns to raise awareness about the quality of its food. McDonalds menu have much more choice for their customer to choose if compare to KFC. The database is updated daily, so anyone can easily find a relevant essay example. 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