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. August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. If an icon is a good one, the business gets more exposure to the public, and more people will notice it. The company has a strong financial position and The company mainly operates its business through franchisees. The competitive strategy of McDonalds is to provide a fast, accessible, and affordable dining experience for its customers. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. Are KFC and Taco Bell competitors? According to reports in 2020, McDonalds had 38,600 locations in more than 119 countries around the world. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. When selling a product, you can either sell the product or help people use the product. McDonalds has a competitive advantage in terms of speed of service. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. McDonald's and KFC Corporate Responsibility. KFC struggles to address issues that influence the sustainability of its supply chain. (2021, August 2). From the perspectives of deferential strategy, organisations seek to supply unique products in any industry. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. McDonalds is constantly serving their customers since 1955. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. Over three million takeaways are discarded in the United Kingdom each day. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. What is better chicken or KFC? By December 2013, KFC had over 18,800 outlets that were dispersed across the globe in over 118 nations. 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. Next, is the their Menu. 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. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. 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. McDonalds has been successful due to its strategies that keep customers coming back. Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. McDonalds is top competitors which brought the most influence towards KFC company. Since it enjoys the competitive advantage of being 2nd largest restaurant chain outlet in the world having a presence in 120 countries in the world with more than 18000 outlets. It also uses digital channels to collect customer feedback and to address complaints and issues. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. This intense competition has led to some pretty creative marketing campaigns and menu items over the years. Since 1954, McDonalds has been dedicated to serving quality food and quick service at an affordable price for our customers. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. IvyPanda. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. According to World of Buzz in 2017, a Malaysian guy has done comprehensive fried chicken review from both fast food franchise, which is KFC and McDonalds. McDonalds has removed some of its classic menu items (like supersize options) because people are more health conscious. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. In addition, they offer a seasonal and regional menu option. 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 context, Aronsson and Brodin (2006) confirm that sustainability in the current supply approaches that are deployed by McDonalds initiates with simple but also significant practices that seek to optimise supply chain decisions. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. This process has the aftermath of reducing carbon prints for many organisations. You should have an apostrophe before the apostrophe in the word system. In the United States, McDonalds has a 42% share of the fast-food hamburger market. Compare both KFC and Texas Chicken in perspective of balance meals, they are same. Quality, service and cleanliness are always important, but in this case, good value is more important. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. Its focus on quality and customer service has resulted in strong brand equity. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. 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. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. How is KFC positioning itself to gain a rival edge over? For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. Which company owns KFC? 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. These include billboards, radio ads, and digital ads. McDonalds has also maintained heavy focus on customer service which has helped it engage customers and achieve a competitive advantage. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. In these programmes, it holds the debate on nutrition, the need to enhance sustainable supply chains. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). 2021. I have always been a shopaholic. Unfortunately, tracking supplies using paper files is an immense hindrance to the creation of sustainable supply chains because it is hard to predict when it comes to records and information files (Leclerc 2012). Falling 5.04 KCALs behind McDonalds, the fried chicken chain KFC reaches 376.67 KCALS per serving. I remember the old ad from the 1980s where the slogan was Im lovin it! I remember my parents used to laugh at the Whats on Your McNugget slogan. Its parent company, the Yum Brands, reported in early 2009 that it had already exceeded its target on CSR by a reduction of greenhouse emissions by 51,000 metric tonnes (Environmental Leader 2009). They often result in excessive food wastes and accumulation of packaging waste. 6, pp. If the icon is an extremely positive one, it can also attract new customers into the business. 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. If you grow your own food, you can control quality better. McDonalds differentiates itself from its competitors by its focus on innovation, customer service, and its global reach. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. Thirdly, is their ranking and sales volume. The competitive strategies the restaurant follows are:-. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. Otherwise, rising competition is leading to higher operational and marketing costs. The total number of McDonalds restaurants globally rose to 37,241 in 2018. This allows them to provide a superior experience to their customers. 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. Texas Chicken has over 1,700 locations in 23 countries worldwide. Originally in 1962, no military base in the United States had drive thrus at restaurants. The success of McDs can be attributed to several factors including food quality, menu diversity, flavour, customer service and the ability to adapt to fast changing consumer trends. McDonalds has a competitive advantage in terms of cheating prices. Yaziji and Doh (2009) quote KFC by informing that more than 60% of its paper-based products are derived from highly sustainable sources. While these fast-food giants have a As a fast food brand, it is trusted by millions around the world. KFC China tends to introduce more new products than its competitors (Jeon et al. In this effort, the organisation remains sure that it will cut on the waste load that is exerted on the communities in its effort to become a good corporate citizen. This is correct. Web. McDonalds has a competitive advantage in terms of speed of service. In such a case there are some important factors fast food businesses should mind to build strong customer loyalty. According to Michael Porter, there are three different way to sustain a competitive advantage. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. 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. The company focuses on making the supply process as efficient as possible. The fast-food industry is highly competitive and it is important that both McDonalds and KFC continue to use marketing to stay ahead of their competitors. McDonalds customers have a lot of power if the restaurant wants to keep its customers. They will release out various kind of food according to the season. If McDonalds wants to continue to grow, it must embrace change in the long run. (2021) 'McDonald's and KFC Corporate Responsibility'. KFC is an organisation that specialises in fried chickens. McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. McDonalds have much more branches then KFC around the world. We`ll do boring work for you. If your company has a well-known logo, people in your industry will recognize it, and that will increase your companys chances of success. The KFC mission or vision statement is as follows: To sell food in a fast, friendly environment that appeals to price conscious, health-minded consumers. KFCs major competitors include Wendys, Subway, McDonalds, and Burger King. The company owns and operates the Taco Bell, KFC, and Pizza Hut brands. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. They also have to factor in the quality of their hamburgers in order to keep prices low in comparison to their competitors. 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. View this and more full-time & part-time jobs in An analysis of the competitive environment of McDonalds. KFCs core competency is we can just come up with one. 49 no. 1 What are the competitive advantages of KFC? KFC focused on popularisation of chicken in a market that was dominated by hamburger consumers. Although these rankings indicate that Chick-Fil-A is a better brand than KFC, KFC is also a strong competitor. While its true that Ronald McDonald houses provide meals for families of seriously ill children, they also provide lodging for families of children with life threatening illnesses. 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