No plagiarism guarantee. If really want to compare, the menu of KFC is much more healthier then Texas Chicken. The fast-food organisation also stopped offering its eat-in foods in cardboards in 2008. McDonalds is top competitors which brought the most influence towards KFC company. If you grow your own food, you can control quality better. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. 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? The fast-food chain is popular for a number reasons. As a quick-service restaurant, McDonalds faces direct competition from restaurants such as KFC, Subway, Taco Bell, Wendys, and Burger King. 2016, 740). Thirdly, is their ranking and sales volume. It has helped McDonalds build a distinct brand image and identity among the fast food brands which works as a source of competitive advantage achieving higher brand recall and sales. Quality, choice and nutrition are highly important to the modern customers who are health conscious people. The two largest fast-food companies have competed fiercely for market share since the 1950s. KFC has been trying to win over customers with its cheaper menu items and unique flavor profiles. Quality, service and cleanliness are always important, but in this case, good value is more important. To achieve this goal, the organisation advocates a bureaucratic formal management structure. A strong supply chain is the backbone of a large and global business. This is where everything about the restaurant industry is taught. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. 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. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. There is no reason for them not to be a major competitor in the market. People prefer to go out to a McDonalds or Wendys grab some food and eat that instead of eating a home cooked meal at the dinner table. 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. (And Everything Else! For example, KFC offers a $5 Fill Up meal which includes a chicken sandwich, a drink, and a side. Since an organisation must balance all interests of the stakeholders, owners of the corporations become disadvantaged since high operational costs imply low returns on investments. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. The main purpose of McDonalds is to give its customers the best possible value for their money. 14 no. Competitive analysis looks at how distinct is your product from others on the market and how it differs from other products on the market. Fast-food organisations are cheap. 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. McDonalds has a competitive advantage in terms of cheating prices. 2010, The Quest for Sustainability, Supply Chain and Logistics Management, vol. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. 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. They strive to produce high-quality products, services, and processes. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. KFC sources of competitive advantage: Strong brand image: KFC has maintained a strong brand image worldwide. Proficient in: Nutrition & Dieting, Corporation. In monopolistic competition, firms compete against each other by selling similar but slightly differentiated products. Heat the pancake batter on the hot grill and pour only a small amount of batter per pancake. This process has the aftermath of reducing carbon prints for many organisations. Burger Kings success can be attributed to one of its primary focuses on value for money. KFC is well-known for its fried chicken, which is made from their own 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 owns 82 of their locations and can rent them out to franchisees. Additionally, McDonalds has a strong focus on families and offers a play area for children at most locations. Pizza, according to a report, is one of the most unhealthy foods on the planet. In the United States, McDonalds has a 42% share of the fast-food hamburger market. McDonalds will always have changes and keep changing their menu to keep their customer freshness towards their company. KFC (also known as Kentucky Fried Chicken) is a global chicken restaurant brand. According to CEO Score, KFC ranks second in terms of comparable CEO performance. McDonalds brand value is unrivaled among its competitors in terms of brand value. 573-580. A zero tolerance policy that addresses the sourcing of poultry that are fed by soy that is grown in the newly cleared Amazon forest also constitutes another measure that helps in presenting McDonalds as a corporation that is environmentally friendly and supporting the conservation of natural habitat. Burger King uses social media to launch new products and track customer feedback. Wilhelm, R. 2011, McDonalds Formal Business Structure. Even though McDonalds is as popular and well known as it gets, success did not happen by itself. We use cookies to ensure that we give you the best experience on our website. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. McDonalds is constantly serving their customers since 1955. It is both popular and successful as a fast food chain. It has also managed a large supply chain to ensure the availability of good quality raw material. Nutrition, convenience, affordability, innovation, quality, hygiene, and value-added services are just a few of the benefits it provides in its competitive advantage. Apply for a Culvers Restaurant Culver's Opening Team Member - Competitive Pay! 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. In this article, One major source of competitive advantage for McD is its extensive global presence. 48 no. How does McDonalds operate in a monopolistic monopolistic market? As such, as Chinese prefer pork to chicken, KFC introduced pork dishes gaining a competitive advantage over McDonalds (Mylonakis and Eryipiotis 2016, 24). Next, is the their Menu. In 2017, its revenue from U.S. was more than 8 Billion dollars. Todays customers are both quality and health conscious. They will release out various kind of food according to the season. For more information on McDonalds, you can also check out our related articles, such as McDonalds target market, and McDonalds slogan. 1 What are the competitive advantages of KFC? Although one of the green approaches to the creation of sustainable chain supplies that are driven by perspectives of green supply chains is through recycling of paper, a more effective way is the creation and embracement of technological ways of maintaining supplies data through mechanisms such as holding data in soft form. An effective supply chain arm of an organisation ensures that products and services are availed just whenever they are required in a manner that will ensure that the increasing number of products that need to be availed in the market is sustainable (Bakshi & Fiksel 2010). To run a major fast food chain, you need to ensure regular supply of good quality raw materials. The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. 68 no. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. As a result, they can become market share leaders in the industry. Its also made the fast food landscape what it is today. Now that the new McDonalds in London is open, weve been getting to know our new home and were finding out that the UK McDonalds is just as nice a place to be as the US versions. 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. The joint venture that has been going on for over fifty years. For example, McDonalds was the first restaurant chain to introduce the drive-thru and Happy Meals. Investing in measures of fostering environmental sustainability of supplies is important in the exercise of corporate citizenship roles. KFCs competitive advantage is its supply chain and distribution system. Burger King, which competes with McDonalds, provides high-quality food and memorable service. High customer convenience and a good customer experience inside the stores have also helped the brand build strong equity. We`ll do boring work for you. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. The data gathered for designing infographic visualisation is about nutritional values of Mc Donald's foods and it is imported from the Kaggle site. The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. Brand equity is an important competitive strength that helps businesses even in economically challenging situations. Paying attention to the principle of corporate social responsibility encompasses one of the issues that constitute a sustainable supply chain management. In the recent past, environmentalists sharply criticised McDonalds over the wastes that were generated through its products and packaging. 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. IvyPanda. ), What Time Does Mcdonalds Serve Lunch? They want their food to be good in terms of quality and low on calories. 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. Other restaurants in addition to McDonalds include Burger King, Wendys, Taco Bell, KFC, and Subway. McDonalds is famous for its cheap, fast meals and their customers appreciate it. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. For instance, KFC have chickens come with whipped potatoes, salads, buns and soft drink but McDonalds have fried chickens with French fries and soft drink only in both fried chicken set. Barnett, M. 2010, Colonel Sanders New Modern Army of Outlets, Marketing Week, 4 March, pp. The database is updated daily, so anyone can easily find a relevant essay example. In this article, I will look at the burger wars and how they will play out in the future. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. Turnaround time and a good customer experience competitive advantage of kfc and mcdonald's the stores have also helped the brand value of company. Relation to other firms in its competitive advantage of kfc and mcdonald's similar but slightly differentiated products KFC ranks in... 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competitive advantage of kfc and mcdonald's