Such products deserve to create value to their consumers. McDonalds is very committed to keeping their restaurants clean. However, Texas Chicken company was not listed in the rank in the analysis. Its restaurants serve a substantially uniform menu except for minor regional variations. This is IvyPanda's free database of academic paper samples. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. Aronsson, H. & Brodin, M. 2006, The environmental impact of changing logistics structures, The International Journal of Logistics Management, vol. 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. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. If you continue to use this site we will assume that you are happy with it. 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. Yum Brands owns and operates a variety of large quick-service restaurant chains, including Taco Bell and KFC. Due to intense competition in the fast food industry, marketing has become more important than ever. 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. In the effort to minimise wastes, the current modern approaches to supply chain management call for organisations to reduce costs such as inventory levels. Pizza, according to a report, is one of the most unhealthy foods on the planet. However, another competitors is Texas Chicken but it does not bring much huge influence to KFC due to their population is not as much as KFC in Malaysia. McDonalds food and coffee business also competes with Starbucks, Dunkin, and Tim Hortons. There is no definitive answer to this question as the ownership structure of both KFC and McDonalds is complex and often changing. Although both chains have their own characteristics, they are widely regarded as the two most competitive in the fast food industry. The company competes with other fast-food firms, such as Burger King, Wendys, Subway, and KFC. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Which company is the biggest competitor to KFC? KFC and McDonalds have been in a fierce battle for the chicken sandwich market share ever since KFC entered the scene in 2015. As a fast food brand, it is trusted by millions around the world. There is also a need for reliable, flexible, and cost-effective business systems that are capable of supporting customer differentiations (Bullinger, Kuhner & van Hoof 2002, p. 3533). Thus, the KFC maintains its competitive advantage from its inimitable resources. (your Full Guide), Why Is Mcdonalds So Cheap? In McDonald's case, such standardization is one of the reasons, along with the sheer ubiquity of its operations, why the company has become a symbol, and to some 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. 394-415. It also encompasses coordination and integration of flow of materials among organisations. ), Mcdonalds First Store (is It Still Open, Menu + More), Mcdonalds Vs Taco Bell (quality, Service, Price + More), What Time Does Mcdonalds Stop Serving Lunch? The world recognition associated with the brand McDonalds itself is also one of McDonald's competitive advantages. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. KFCs top competitors include Wendys Company, Popeyes Louisiana Kitchen, Subway and Restaurant Group. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). Does KFC have any core competences are any of these distinctive better than the competition )? The rivalry between McDonalds and Burger King is a classic example of business. The two companies have been duking it out with aggressive marketing campaigns and menu innovations. Such strategies cut across many sustainable supply efforts, including sending automated emails to inform customers on any new advances in terms of product evolution and/or tracking and linking of information via strategies such as instant messaging. 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. Their taste has changed a lot and they would rely only upon brands that ensure good quality. KFC ranks second in terms of CEO Score, trailing only UPS. Excellent! McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. These include billboards, radio ads, and digital ads. KFC also has a strong presence in China, which is a key growth market. Even though McDonalds is as popular and well known as it gets, success did not happen by itself. Home / Essay Samples / Nursing & Health / Nutrition & Dieting / Fast Food. By John Dudovskiy. The number of baby boomer customers of McDonalds is also large. 17-19. McDonalds has focused on all these things. However, it is still a leading fast food chain and has achieved a strong and leading position in the industry. It asserts that these parties hardly inquired about sustainability or even talked about it (Idle 2011). Higher focus on customer service has become more essential than ever for businesses around the globe. 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). Such prints are computed using inventories of greenhouse gas emissions within a company, product and facility, or any other alternative entity. This figure escalated to $142 billion in 2006. 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. Business Week, 18-19. Over the years, Wendys restaurants have built a strong brand equity through quality service and customer satisfaction. Similar to McDonalds, the organisation also follows the franchising model of operation. An important thing to realize is that the success of an icon is not limited to the business. Analyzing other companies who provide the same products or who can meet the same needs in various ways is one way to look at other companies. McDonalds restaurants are mainly run through, Microsoft Research and Development Expenses, General Motors (GM) Research and Development costs. 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. 2 no.1, pp. McDonalds and its franchisees buy food, packaging, equipment and other goods from several independent suppliers. If youre the first to try something new or to address the spotted need, youll get better results. But, Texas Chickens core dish of restaurant is only fried chicken. The idea is to give customers a more natural product. McDonalds is constantly serving their customers since 1955. However, McDs has continued to grow its presence in the other significant markets too. McDonalds, on the other hand, is known for its high-quality food and excellent customer service. McDonalds continues to implement its global business strategy, which is driven by the business slogan play to win. If a McDonalds customer has a good experience one day, they will return again. (And Everything Else! On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. McDonalds customers have a lot of power if the restaurant wants to keep its customers. 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. 6, pp. Over the long term, McDs aims to manage 95% of the restaurants in its system through franchisees. 1) a unique and identifiable service or product, 2) a well-located and accessible location, and 3) a high level of customer service. The training process for McDonalds is that they ask, prepare, try out, and follow up. Based on this concern, the paper has confirmed that the subject of creating sustainable supply chains entails interplay of a variety of stakeholders. 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. Customers can rely on them for expert knowledge in delivering a specific type of experience. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. 2 piece chicken ala carte in KFC cost RM 7.20 while Texas chicken cost RM 9.10. McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. For example, KFC offers a $5 Fill Up meal which includes a chicken sandwich, a drink, and a side. Franchising improves the brand value of the company hence bargaining power along with improving its revenue and visibility. As the world economy recovers, I anticipate increased competition between McDonalds and Burger King as they fight to retain customers. To run a major fast food chain, you need to ensure regular supply of good quality raw materials. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. Cheeseman (2013) says that they spend a total of $6 billion in 1970 on purchasing fast foods. Cheeseman (2013, Para. South Africa has one of the most developed economies in Southern Africa with the second highest GDP of all African countries in 2017. 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. You cannot copy content from our website. They strive to produce high-quality products, services, and processes. For example, McDonalds has a loyalty It first offers some background information on the organisations. One major source of competitive advantage for McD is its extensive global presence. McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. The franchisees own and operate more than 90% of McDonalds restaurants globally. With great customer service and a great community service department, McDonalds remains a leader in communities all over the world. McDonalds wants to make money by not only selling its products but by encouraging customers to add additional items to their orders. Consequently, sustainability in a supply chain can be enhanced in an organisation by aiming to be the lowest cost leader within any industry. In spite of strong competitors likes KFC Subway etc. Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. KFC is an organisation that specialises in fried chickens. The main purpose of McDonalds is to give its customers the best possible value for their money. 2, pp. Such legal provisions have the impact of raising the cost of running the business of both organisations. It has instead positioned itself as a mid-range meal option for young professionals or a rare treat for families. As a result, they can become market share leaders in the industry. McDonalds stands out from the rest of the competition due to its presence in the countrys nook and corners. McDonalds has built a strong image as a fast food brand that only offers great quality. Supply chain management entails overseeing the movement of goods and services, finances, and information from the point of production to wholesalers and then to consumers. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! We would expect a McDonalds restaurant to be much cleaner than one that orders food through a third-party. It has more than 35,000 branches in more than 120 countries. McDonalds serves over 69 million customers each day. For instance, in 2009, the company sort ways of reducing the amount of packaging by more than 1,400 tonnes (Environmental Leader 2009). 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. McDonalds competitors in the United States and the United Kingdom are also direct competitors. McDonalds is popular for its hamburgers. 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). The government should take steps to break up monopolies in order to benefit consumers and the economy as a whole. Icons are like the logos in any other business. Do you want fries with that? This is a question that has been asked for decades. Hence, sustainable supply chain management concepts that are deployed by KFC and McDonalds persuade organisations to become green. Every employee is trained in working tirelessly to keep a clean environment for all guests. June 20, 2022. Can they constitute good examples of corporate citizens in the US fast-food industry? Several brands like Starbucks have become famous by focusing exclusively on customer service. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. 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). Cheeseman, G. 2013, Can the Fast Food Industry Ever Be Sustainable. However, apart from food, it has all focused on customer service. They often result in excessive food wastes and accumulation of packaging waste. Please note! They use four steps of training for each employee. Texas Chicken have branches more than 1,700 locations worldwide in 23 countries. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). In contrast, Wendys has superior products with higher prices. In addition to adapting to customer preferences, McDonalds and KFC also need to engage in marketing to maintain customer loyalty. It is an amazing service that is very much needed. For instance, KFC have chickens McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. Its focus on quality and customer service has resulted in strong brand equity. (what To Know! McDonalds restaurants were opened in 1948 in San Bernardino, California, by two brothers named Maurice and Richard McDonald. The principles must be directly related to the concerns of people who consume the products. The company has a 60% share of the global fast-food hamburger market. McDonalds strategy can best be described as a Cost Leadership strategy that allows for the delivery of products at a lower cost. The restaurant prides itself in having a differentiated process to manufacture its products and thus retain a healthy competitive advantage. Next, is the their Menu. A third strategy that McDonalds employs in its supply chain are whats known as vertical integration. 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. Other non-fast food chains have been targeted by McDonalds in order to gain a larger share of the market. 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 franchise model that was introduced in the 1970s is a model that has been very successful and which has helped a multitude of enterprises in many countries to become very large and profitable. 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. This strategy is driven by health professionals increased emphasis that fast foods are associated with obesity and its associated ailments, including hypertension and diabetes. Thus, it also experiences challenges that are similar to those that are experienced by McDonalds. From early 2000, the company was able to recycle millions of tonnes of food packaging boxes, which reduced waste production by more than 30%. On Comparably, they are ranked fourth in the Gender Score category, indicating that they are accommodating both genders. They have also developed a very effective marketing strategy. 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). While doing the market segmentation for the products, the target market has been well studied and investigated. There are approximately 36,889 restaurants in 120 countries and territories around the world. KFC ranks fourth among all companies in terms of its Diversity Score, which is given to employees. Proficient in: Nutrition & Dieting, Corporation. KFC is one of the major fast-food organisations that endeavour to internationalise by opening new outlets across the globe. They have to establish mechanisms of enhancing corporate governance. McDonalds website states that each location uses a daily, weekly, and monthly schedule of cleaning tasks.

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