Introduction
The case revolves around the main peculiarities of the McDonalds entry to the new Indian market. It could be defined as a complex process that demands the comprehensive investigation of the unique features of the area. First, the company has to create the unique strategy that will meet the requirements of local people. For this reason, Big Mac is replaced with Maharaja Mac as 80% of population do not eat beef (Pangarkar & Subrahmayan 2011). Additionally, for 12% pork is also taboo and the products that are made of it are replaced with other dishes (Pangarkar & Subrahmayan 2011). For vegetarians who comprise 40% of the population of India, a special McAloo Burger made of potato is introduced (Pangarkar & Subrahmayan 2011). Altogether, the companys main strategy is the creation of the products that will satisfy local peoples needs and attain a certain competitive advantage. McDonalds also could explore significant resources available for it at the moment.
These are great funds as the company is the leader of the fast-food restaurants (Why McDonald’s sales are falling n.d). Additionally, being a unique franchise, the company could also use the experience and equipment that might improve its functioning in any region or state. Finally, McDonalds is also able to guarantee the acquisition of a certain competitive advantage by emphasizing its unique approach that rests on the satisfaction of customers current needs and desires. The combination of these facts contributes to the appearance of a significant gap between the company and its rivals. McDonalds considers the payment capacity of local people and implement the pricing strategy in the way that might satisfy diverse needs of local population. India could be characterized by the significant oscillations in the level of incomes, Being oriented on people with the average income, McDonalds will also provide an opportunity for poor people to buy its products by making their price low enough for them to be able to afford at least something from the menu.
Nevertheless, there are also several risk factors that should also be minded when working in the new market and under the new conditions. First, the significant part of the population is vegetarian while the majority of products prepared in McDonalds contain meat. Second, Buddhists and Moslems do not eat beef and pork which means that the approach to the menus composition should be altered. The introduction of the new product might demand the great reorganization of the whole supply chain which could demand extra spending. Third, there are still strong anti-West moods in the country as for the long time India had been suffering from the British rule (Rangnekar 2014). These factors should obviously be taken into account. However, when analyzing the case, one could understand that the company has already introduced several important changes to the strategic management process to be able to face the new challenges.
First, it added the new products in terms of its strategy that is aimed at the satisfaction of current needs. Moreover, having analyzed the peculiarities of the local environment, McDonalds also created two different menu boards for vegetarians and non-vegetarians. Finally, to convince Indian people that they will not eat beef, special brochures that explained this fact were created. Besides, the company is going to devote significant sums to guarantee the success of this new business venture and become an important actor who functions in the local market. That is why it explores the unique features of the franchise that bring success in all states all over the world. McDonalds proclaims popularity its main priority in the area as it recognizes the great potential of the local market that is conditioned by the great paces of Indian economys growth.
The exploration of all available sources will obviously have the great positive impact on the companys success. Altogether, the company sees its mission in the acquisition of a great competitive advantage and winning the rivalry to become the most popular and beneficial restaurant in the region (Kannan 2014). Its unique purpose is the creation of the new approach to customers that will combine previous unique experience altered to satisfy needs of local people and attract them by introducing products that have never been seen here before. The given mission preconditions the choice of the strategy, resources, approaches, managerial styles, etc. McDonalds is considered the most popular franchise at the moment, and it wants to become successful in this new market to obtain extra revenues.
SWOT analysis
Analysis
Competitor analysis
Forces analysis
PESTLE
International strategy
Altogether, the current McDonalds international strategy could be defined as successful as it managed to become one of the leaders of fast-food restaurants in the world (FT 2015). Its huge revenues and recognizable image also evidence this fact. For this reason, it is also possible to conclude that its attempts to develop Indian market will be successful. Mc has already changed the approach to the menu by excluding beef and pork and adding a special set of dishes for vegetarians. It is obvious that these actions will help to suit the current markets needs and attain success by increasing its popularity and attracting new customers. Moreover, the new approach to the pricing strategy that rests on the consideration of local peoples paying capacity guarantees the increased number of individuals who will be able to use the given restaurant and by some food.
Conclusion
In conclusion, McDonalds attempts to develop the Indian market and find new customers could be considered successful as the company managed to alter its strategy in the way that suits the peculiarities of the local market and satisfies needs of people who live there. Moreover, this statement could be proven by the significant revenues obtained by the company due to its attempts to create the attractive image and find new customers. Yet, the comparison of incomes provided in the table could also be used to support the idea and emphasize the importance of the alteration of the companys strategy for it to be able to meet new challenges and continue its rise.
Table 1. Comparison of revenues (Pangarkar & Subrahmayan 2011).
Reference List
FT 2015, ‘McDonald’s and its challenges worldwide: a market-by-market look’, Financial Times, Web.
Kannan, S 2014, ‘How McDonald’s conquered India’, BBC, Web.
Pangarkar, N & Subrahmayan, S 2011, Beefing up the beefless Mac: McDonalds expansion strategies in India, Web.
Rangnekar, A 2014, McDonald’s India Entry Strategy, Web.
Why McDonald’s sales are falling n.d., Web.