In 2017, McDonalds incurred advertising expenses of 532.9 Million dollars and other marketing related expenses of around 100 million dollars. The lifestyle around here has changed in so many ways from when our parents were children. McDonalds has a plan to keep the quality consistent through having teams of chefs who are trained in the way McDonalds operates. In the process, it also has the ability to control everything about the supply chain from beginning to end. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. United States are the largest market for McDonalds accounting for more than 30% of the companys revenue. Green technology and green products communities will be interested to know whether products that are supplied by both McDonalds and KFC through their supply networks meet the concerns of environmental protection. McDonalds had $19.2 billion in revenue in the fiscal year that ended in June 2020. Business Week, 18-19. In 1960, it opened branches in the UK, Jamaica, and Mexico. June 20, 2022. KFC is an organisation that specialises in fried chickens. Finally, McDonalds has a presence in over 100 countries, making it one of the most ubiquitous restaurant brands in the world. 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. Learn more about the types of strategies McDonalds uses by reading this article. Clock is ticking and inspiration doesn't come? McDonalds restaurants are mainly run through independent franchisees in more than 100 countries. Cheeseman (2013, Para. They also aim to provide good quality food. McDonalds is the leading and one of the most popular fast food brands of the world. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. The franchise business model of the company has managed to ensure that products and services that are offered at the franchises are consistent with services that are offered at the company-owned restaurants. Sustainability in supply chain management can be enhanced through programmed inter-supplier communication strategies. In this way, a large menu becomes a source of distinct advantage for McDonalds which is the favourite fast food brand of a very large group of customers from all generations. KFCs sources of competitive advantage. The restaurant will continue to strive for quality customer service. Choose your writer among 300 professionals! McDonalds is a famous fast food brand with operations around the world in more than 100 countries. Additionally, McDonalds customer service standards are among the highest in the fast food industry. 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 focused on all these things. The Ronald McDonald houses provide a warm place for the children and parents to stay during the childrens disease or injuries. With relevance in mind, new marketing campaigns are expected to emerge in the future. To achieve cost savings, the company employs economies of scale all over the world. The main items on its menu include hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, french fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCaf beverages and other beverages. The Burger King cheeseburger contains more protein and sodium than the McDonalds cheeseburger. professional specifically for you? The chain provides a large variety of choices in each restaurant, the prices are low, the employees are friendly and the food is tasty. must. Moreover, customers have higher bargaining power and it is not very costly for them to switch brands. McDonalds business strategy utilizes a combination of cost leadership and international market expansion strategies. Christopher, M. 2005, Logistics and supply chain management: Creating value-adding networks, Prentice Hall, Horlow. Even as a fast food brand, it has to retain heavy focus on customer service so as to retain them. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). 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. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/, IvyPanda. In the United States, McDonalds has a 42% share of the fast-food hamburger market. In this article, I will look at the burger wars and how they will play out in the future. It first offers some background information on the organisations. McDonalds, on the other hand, has had to deal with competition from newer, smaller chains over the years. According to a recent Business Insider report, KFC is by far the most popular restaurant chain in China, and it is not the same as the American brand. It is why McDs spends a significant sum on marketing every year. 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. McDonalds has built a strong image as a fast food brand that only offers great quality. The advertising wars were unsustainable in their own right they were prohibitively expensive. 17 no. Having a focus on quality has allowed them to maintain a good supply chain, which helps ensure the high quality of their food and the safe handling of any contaminants. This claim means that they must guarantee their commitment to the prevention of abuse of human rights. They will release out various kind of food according to the season. McDonald's and KFC Corporate Responsibility. Creating customer loyalty is difficult in the 21st century. Not only that McDonalds have a lot of branches in Malaysia. 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. 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. In a mixing bowl, combine pancake mix, milk, Crisco oil, and egg; continue to add large clumps until all of them are moistened. McDonalds has a competitive advantage in terms of speed of service. The competitive strategies the restaurant follows are:-. Need a custom Assessment sample written from scratch by This is IvyPanda's free database of academic paper samples. As a fast food brand, it is trusted by millions around the world. Its key competitive advantages have included nutrition, convenience, affordability, innovation, quality, hygiene, and value added services. In 1973 KFC joint Malaysia. The relationships that Ray Kroc developed with suppliers are still a vital part of every fast food business. McDonalds has a healthier menu than KFCs such as McVeggie, apple pie, and spinach pie, as well as vegetarian meals such as Appletini. McDonald's Competitive Advantage. While these fast-food giants have a Customers of KFC rate KFCs brand as #130 on the list of Global Top 1000 Brands. 1. McDonalds, on the other hand, has been relying on its established brand name and customer base to stay ahead of the competition. McDonalds has been criticized for its advertising to children. Some valid generic mechanisms of achieving excellence and market success include differentiation and cost leadership. Such legal provisions have the impact of raising the cost of running the business of both organisations. Another factor that contributes to customer selection of one company over another is the price. Mcdonalds Competitive Advantages (9 Different Factors) July 4, 2022 by Alex. 127143. McDonalds has always tried to achieve higher customer satisfaction. They strive to produce high-quality products, services, and processes. 1 What are the competitive advantages of KFC? McDonalds is one of the worlds largest chains of hamburger fast food restaurants serving more than approximately 60 million customers in 120 countries each day. McDonalds is constantly updating its menu to keep its most loyal customers coming back. Bullinger, J., Kuhner, M. & van Hoof, A 2002, Analysing supply chain performance using a balanced measurement method, International Journal of Production Research, vol. We will write a custom Essay on Marketing: McDonalds and KFC specifically for you. They have a value chain that allows them to compete with other fast food chains while still providing their customers with excellent service. 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). In the Chinese market, KFC came under criticisms for utilising a growth hormone and high levels of antibiotics in its poultry in a manner that violated the Chinese law (Hsu 2013). Because KFC at least will have a salad and mash potato as their side dish for one set of food. 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. Please note! Web. 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. Today, McDonalds is the favourite fast food joint of millions globally which is a distinct advantage helping the company get ahead of its rivals. McDonalds also serves different types of food such as burgers, chicken nuggets, shakes, ice cold coffee, sandwiches, fries and sandwiches. McDonalds is one of the worlds largest restaurant chains, with over 6,500 restaurants worldwide. This is where everything about the restaurant industry is taught. By John Dudovskiy. In order to differentiate itself from competitors, McDonalds offers a variety of unique selling points that are difficult for other companies to replicate. Human beings tend to have a McDonald's is the worlds largest chain of fast food restaurants that serving over 64 million customers daily in 119 countries worldwide. Web. 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. Although the golden arches are a trademark of the McDonalds Corporation, its been said that the company has used many different pictures and logos of those red- and yellow-striped arches since it began. Richard and Maurice, Their key strategies include their focus on value and their expansion into new markets. One of McDonalds competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. Would you like to have an original essay? Environmental Leader 2009, KFC Switches to Earth Friendly Packaging. The fast-food chain is popular for a number reasons. (And Everything Else! It is essential to keep the customers engaged and retain them so that they do not switch brands. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. 1. 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