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The Golden Arches in India

Presentated By : Arifa Akhtar Zia Sajid

– 1211270 – –

McDonalds is one of the best known brand worldwide. •Founded in 1940 •It is worlds leading food service provider with 33000 restaurants serving in 118 countries serving 64 million customers each day.

• Franchise Model – Only 15% of the total number of restaurants are owned by the Company

owns and operates McDonald's in North and East India •250 restaurants across the country • .MC DONALDS India •McDonald’s entered India in 1996. •Vikram Bakshi(Connaught Plaza Restaurants). •50:50 Joined ventures •Amit Jatia(Hardcastle Restaurants) owns and operate operations in West & South India.

General Environment of Fast Food Industry in India Socio Cultural •80% Hindu •12% Musim •40% vegetarian Fast Food Industry Political •Democracy •Large Bureaucracy •Socialist Mind Set .

Five forces Model of Fast Food Industry in India Substitute Products Burger King. Indian Cuisine. Indian local shops.LOW Potential New Entrants •Entry Barrier Threat -HIGH . KFC. Indian Vegetarian restaurants Threat-HIGH Suppliers of Key Inputs •Various Suppliers Rivalry Among Competing Sellers •Top Brands Competitors •Same criteria of food industry Competition-HIGH Buyers •One price strategy • Quality of food Bargaining Power – LOW Bargaining Power.

Strategic Group Map of Fast Food Industry in India High Price National Fast food Chain Nirulas. Road Side Restaurants International Fast food ChainMcDonalds. KFC.g. Darshini Local Fast-food E. Baskin-R Dominos Low Low Variety in Food Menu High .Dhabas.

Product Development. Supply Chain Arrangement .Strategic & Management issues that McDonalds had to consider to enter into India • Potentially large consumer Market 300 Million • Wide Range of economic reforms -1991 • Entry of MNCs • The environment factors in India • Indian customers taste.

. act local” • McDonald's India as a wholly owned subsidiary that is known as McDonald's India Pvt Ltd.McDonald's Entry in India • “Think global. • Two joint venture on a 50:50 basis in Mumbai & Delhi.

Challenges of McDonald's In India • To avoid hurting religious sensibilities of Indian People • To avoid political confrontation with Indian government and political activites .

Strategies of McDonald's Certain issues McDonald's consider while entering in Indian market: Research and Development: • Different types of Language • Religious Sensitiveness • Vegetarian & Non.Vegetarian .

. • According to the vegetarian & non-vegetarian they separate their menu. with the Maharaja Mac.Strategies of McDonald's • To attract customer change their core product name „Big Mac”. • Change latter to avoid offending the sensibilites of Hindus & Muslims.

Strategies Of McDonald's • Low price than Sri Lanka & Pakistan and providing complimentary gifts. • McDonald's often launched massive promotional scheme in collaborating with the media partner. .

Internal Analysis of McDonalds' India Tangible Resources •Financial Resources • Physical Resources • Technological Resources Intangible Resources • Human Resources • Innovation Resources • Reputational Resources .

Capabilities • Distribution • Marketing • Research & Development .

Core Competency Analysis Rare Valuable Costly to Imitate Nonsubstitutable Supply Chain Yes Yes Yes Yes Distribution Yes Yes Yes No R &D Yes Yes Yes No .

SWOT ANALYSIS STRENGHTS •Strong brand recognition PLEASE ADD UR POINTS •Strongest Presence •Customer Intimacy •Product innovation •Supply Chain OPPORTUNITIES •Expand into maximum cities •Entry into breakfast category •Acquisition of other restaurants WEAKNESS •High overall costs than rivals •Adaptation time period •Huge Investment THREATS •Changing customer lifestyle •Increase in competition •Growing health conscious population .

Functional-Level Strategies Building Blocks: • Efficiency • Quality • Innovation • Customer Responsiveness .

Achieving Superior Efficiency • Manufacturing • Mass Customization • Low cost and economies of scale • Flexible Manufacturing Technology .

Distribution &Customer Loyalty) •Material Management and Supply Chain. JIT & efficiency •Human Resource Strategy & Efficiency . Advertising.Achieving Superior Efficiency •Marketing & Efficiency ( Pricing. Market Information for Product Design. Promotion.

Functional-Level Strategies • Achieving Superior Quality • Achieving Superior Innovation • Achieving Superior Responsiveness to customer .

HongKong and the Middle east. • It shows that when you set up a supply chain in strategic location it can service other countries as well. Russia and Southeast Asia. • The company was also trying to export its products to Europe. lettuce and other product that went into its burgers.Things are becoming global in nature • McDonalds had started using India as an export base for cheese. • Exports had already begun to Sri lanka. .

Recommendation • In terms of innovation. . So it is a important factor for McDonalds to go for continuous innovation. it is a continuous process and McDonalds Corporation India is giving their maximum effort on it.