competitive advantage of kfc and mcdonald's

The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. 2, pp. Next, is the their Menu. McDonalds has developed strategic plans for ensuring that its products align with the emerging concerns on healthy foods and eating habits. In this study, target population is the young consumers (under 30) in The beginning point is ensuring that inventories are availed at the right places at the right time and in the appropriate quantities. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. McDonalds has built a strong image as a fast food brand that only offers great quality. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. KFC positions itself competitively by leveraging on franchising. Idle, T. 2011, How can KFC be a responsible business when you are fuelling child obesity? The chicken business responds. McDonalds is ranked first in the world, while KFC is ranked fourth. I., 2000, Marketing Theory and Practice, lecture 6). McDonalds serves over 69 million customers each day. McDonald (1st restaurant). McDonalds has reorganized its field operations in order to become more nimble and focus on franchising margins. 2016, 740). If an icon is a good one, the business gets more exposure to the public, and more people will notice it. They offer hamburgers, french fries, breakfast menu items and many more. 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. 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. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. As a fast food brand, it is trusted by millions around the world. One of such strategies involves phasing out paper documentations and paper-based product packaging (Leclerc 2012). One of McDonalds competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. These three different strategies are cost leadership, differentiation, and focus. 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. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. By continuing, well assume you agree with our Cookies policy. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. 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. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. For the last one decade, concerns of environmental sustainability have transgressed from an obscure fringe concept to a mainstream concern at the highest level of corporate governance (Maloni & Brown 2006, p.35). This allows them to provide a superior experience to their customers. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. Brand equity is also a major source of advantage for a fast food brand. McDonalds competitors in the United States and the United Kingdom are also direct competitors. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. This type of competition is found in many industries, such as the fast food, retail, and automobile industries. Customers McDonalds brand value is unrivaled among its competitors in terms of brand value. 8 Why is KFC the best fast food restaurant? 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. The restaurant will continue to strive for quality customer service. Due to intense competition in the fast food industry, marketing has become more important than ever. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. However, it leads to added costs, which attract low profitability. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. Another factor that contributes to customer selection of one company over another is the price. McDonalds has focused on all these things. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. When McDonalds fails to meet customer expectations, both suppliers and consumers rely on substitutes in greater numbers. job in Hastings, MI. 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. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. It is why McDs spends a significant sum on marketing every year. 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. They understand that their customers have distinct needs, which sets them apart from their competitors. McDonalds has more locations than KFC. The mcpizza and mclobster are two failures of the mcdonalds. McDonalds sells a wide variety of food. (2021, August 2). 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. Ketchen, G. & Hult, T. 2006, Bridging organisation theory and supply chain management: The case of best value supply chains, Journal of Operations Management, vol. While these fast-food giants have a Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. Business Ethics (2014) supports this assertion by adding that the company has led in terms of packaging in the tune of 300 million pounds. For instance, both organisations are immensely concerned with their environmental impacts. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. McDonalds has a competitive advantage in terms of speed of service. It has quality centers around the globe which ensure that the high standards company has set are consistently met. 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). So KFCs core competencies are its ability to leverage, exploit, take advantage of its recipe and its brand name. 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. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. McDonalds worldwide serves 6.5 million burgers per day or 75 burgers per second. 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. The United Nations 2014, The Millennium Development Goals Report, The United Nations, New York, NY. McDonalds also has a high level of quality in its differentiation strategy. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. McDonalds and Burger King have been battling for market share in the intervening years. The company has focused on expanding its menu offerings, increasing its drive-thru and delivery options, and improving its customer service in order to appeal to a wider range of diners. 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 has established a global advisory council to provide nutrition recommendations as part of its mission. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. Customers rate KFCs Pricing Score a 3.6/5, making it one of the top three restaurants in terms of pricing, trailing only McDonalds. McDonald's and KFC Corporate Responsibility. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. 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. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. Apart from a varied and healthy menu, better in-store customer experience also helps retain customers. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. 2010, The Quest for Sustainability, Supply Chain and Logistics Management, vol. McDonalds is very committed to keeping their restaurants clean. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. The company mainly operates its business through franchisees. Todays customers are both quality and health conscious. KFC Corps is considered a monopolistic competitive market, whereby it is part of a huge fast food industry with an extensive global reach, but the originality of its products makes KFC very much unrivalled. Customer-focused approach brings advantages to KFC. Brands, Inc., based in Louisville, Kentucky. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). KFC is an organisation that specialises in fried chickens. They want their food to be good in terms of quality and low on calories. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. 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. McDs is continuously evolving its menu to meet its customers needs and choices. professional specifically for you? 2) confirms, Cheap food comes with steep hidden costs to the people who produce it, sell it, and eat it, to the environment, and to future generations. Can KFC and McDonalds operate sustainably? With its specialisation in chicken, it received tremendous welcome in the Chinese market since Chinese people prefer chicken to beef (Novak 2014). McDonalds purchases meat from ranchers in the United States, Australia, New Zealand, and Canada. While the customers of McDonalds are mainly the millennial generation, they are only the largest group. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide.
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