As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. professional specifically for you? 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. The statistic showed KFC cost RM13.90 including the 20 cents of plastic bag, while McDonalds costed RM13.85 for both regular sets. As time passed James McLamore and David Wendys is an international fast-food restaurant chain that is famous for its hamburgers, french fries, Frosty, chicken nuggets, sandwiches, and even its Twitter account. 14 no. Why is KFC the best fast food restaurant? 10-11. McDonalds has more locations than KFC. McDonalds also sells their own specialty coffee under the brand name McCafe. They also Because of its long history of innovation, the chain has been dubbed one of the most luxurious restaurants in the world. McDonalds is one of the largest fast food companies in the world. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. 573-580. KFC is well-known for its fried chicken, which is made from their own Indeed, competitive advantage is one of the supply chain management strategies that act as critical success factors for sustainability in any organisation, The company is moving from using only mechanically separated beef, which is a process that makes the meat from cattle so that it could be ground more easily for hamburgers, to a more natural ground beef that is minimally processed. The marketing strategies of McDonalds and KFC are very different. The QSR industry has grown and is populated by a very large number This is an example of creativity that allows McDonalds to continue to thrive. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. Several brands like Starbucks have become famous by focusing exclusively on customer service. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. (what To Know! McDonalds, on the other hand, is known for its high-quality food and excellent customer service. KFC may not be considered as the direct competitor to McDonalds as it does not specialize on the burgers and fries. From Happy Meals to Big Macs, McDonalds is a staple for the American diet. McDonalds is constantly serving their customers since 1955. A large and varied product range is meant to cater to the taste and needs of various groups of customers. 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. 8 Why is KFC the best fast food restaurant? KFC, second largest restaurant in the world have their outlets around 120 countries with more than 18000 outlets. This claim means that apart from the need to serve their own interest and the interest of the owners, McDonalds and KFC have to deploy the adopted supply chain management approaches to demonstrate their concern to the protection and preservation of the environment within which they are established. The product ranges originality factor ensures a fixed or even growing share of the market. McDonalds and KFC are two of the most prominent fast food chains cherished by numerous around the globe. 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. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. McDonalds is most popular for its diverse menu. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local business men and women. The subject is later compared with approaches that are deployed by KFC and McDonalds to enhance good corporate citizenship with reference to their supply chains. It helps retain customers as well as attract new ones and manage a healthy bottom line. McDonald's and KFC Corporate Responsibility. McDonald's and KFC Corporate Responsibility. The organisation is also a subsidiary of the Yum Brands, which also owns organisations such as Taco Bell and the Pizza Hut fast-food chains. KFC struggles to address issues that influence the sustainability of its supply chain. These changes have taken place following changes in the business environment, excessive anxiety for climatic changes, and concerns of energy security from various stakeholders and advocacy groups across the globe. Strong brand equity has resulted in high customer loyalty but the brand still invest in R&D and marketing for higher customer engagement. I believe were going to see a new chapter in the Burger Wars in the coming years. Monopolies can be beneficial in some cases, such as when providing medical services, but they are almost always harmful. McDonalds international expansion began in 1980 and had 6,000 locations by the end of 1980. It is also important in the development of resource exploitation, client contentment, and brand appreciation (Maloni, & Brown 2006). When McDonalds restaurants see donations in boxes, they collect the donations and give away the donations to Ronald McDonald Houses to help children with serious illnesses. Their weaknesses include their high level of debt and their reliance on a small number of key suppliers. A Food Safety Advisory Council, made up of McDonalds technical, safety and supply chain specialists, as well as suppliers and outside academia, provides strategic global leadership for all aspects of food safety. 48 no. 7 How is KFC different from the rest of the world? From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). However, this is not its entire expense because the franchisees also bear and contribute to the costs of advertising and promotions. In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. 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. 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. Sunner became McDonalds official supplier in September 2014. must. McDonalds is a worldwide fast-food franchise with hundreds of restaurants throughout the world. So in this comparison, KFC is much more cheaper then Texas chicken. They are also sensitive to regional differences in taste, so KFC spicy chicken is much hotter in Sichuan than in Shanghai. Different organisations may choose to pursue different types of competitive advantages. Choose your writer among 300 professionals! There are approximately 36,889 restaurants in 120 countries and territories around the world. 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. This claim means that they must guarantee their commitment to the prevention of abuse of human rights. IvyPanda. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. Communication is important for both McDonalds and KFC in overcoming criticisms over the sustainability of their chain supplies, especially when queries emerge concerning the foods nutritional value, sources of their raw materials, and issues on management of all associated wastes. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. KFC is popular for its fried chicken. Hence, McDonalds is still cheaper than KFC. 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. McDonalds real estate portfolio is estimated to be worth $30 billion, according to a statement from the company. How is KFC positioning itself to gain a rival edge over? This process has the aftermath of reducing carbon prints for many organisations. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. 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. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. In the United States, McDonalds has a 42% share of the fast-food hamburger market. Not only that McDonalds have a lot of branches in Malaysia. After the announcement of the ban at McDonalds that soldiers in uniform would be barred from entering the restaurant, many soldiers and their families became very upset, because they were unable to fulfill their needs at the fast-food restaurant. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). These cost leadership strategies include economies of scale, proprietary technology, and preferential access to raw materials (Ciliberti 2009, p.119). However, apart from that it has some other sources of competitive advantage too. McDonalds focuses on providing a fast and convenient experience for its customers, while KFC focuses on providing a tasty and affordable experience. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. 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. If youre the first to try something new or to address the spotted need, youll get better results. McDonalds has access to a number of raw materials suppliers, including chicken and meat. This is IvyPanda's free database of academic paper samples. 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. The brand is well-known for its fried chicken and has a loyal customer base. However, it leads to added costs, which attract low profitability. 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. Todays customers are both quality and health conscious. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). However, Texas Chicken company was not listed in the rank in the analysis. It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers. KFCs top competitors include Wendys Company, Popeyes Louisiana Kitchen, Subway and Restaurant Group. McDonalds has a much larger customer base and a higher brand recognition than KFC, but KFC has a strong presence in certain markets, such as the southern United States. McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). McDonalds was ranked in number one in the analysis of Top 10 Fast food Largest Fast Food Chains In The World. 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. McDonalds competitors in the United States and the United Kingdom are also direct competitors. KFC notes its weaknesses in communicating sustainability efforts to consumers and other parties that have stakes in its operations. Thus, the KFC maintains its competitive advantage from its inimitable resources. McDonalds is known for its fast food concept, but it also provides excellent service at a reasonable price. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. Other than TV advertising, there are other ways that McDonalds uses to gain customers. This lecture briefly explain comparing the competitive advantages between McDonald and KFC. This is not pushy, the goal is to make extra money. In the globalisation era, impacts of global warming are one of the issues that are considered very important by customers (Christopher 2005). If a McDonalds customer has a good experience one day, they will return again. To achieve cost savings, the company employs economies of scale all over the world. This is where McDonalds purchases all the raw materials for its menu items, such as tomatoes and lettuce, from the same supplier. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. McDonalds strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. McDonalds and the EDF successfully implemented a waste reduction plan to enhance sustainability in their supply chains. Beside that, KFC company was ranked in number two in the analysis. 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. Many businesses use cross-selling to maximize sales. KFC is an organisation that specialises in fried chickens. Products can be positioned based on attributes, benefits offered, usage occasions, users, against or away from competitors, or based on the products class (Walker. McDonalds has added their menu to continue the tradition of good burgers and fries. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. Higher focus on customer service has become more essential than ever for businesses around the globe. 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