Global Market Opportunity Harvard Case Solution & Analysis

McDonalds is an international fast food chain and is present in more than 100 countries. The company, from its inception, has focused on delivering quality, service and value to their customers and has been a success globally. McDonalds has a strong presence globally and has been a market leader both in domestic as well as in the international market. The company serves an international market, according to the preferences of the local consumers. The company has sufficient experience and knowledge of the international market and leveraging on its experience and knowledge the company can enter other markets as well and can explore countries which haven’t been explored yet by McDonalds.

The company has utilized the global market opportunity very effectively and has been constant in identifying the opportunities in different countries and the market potential and with the industry’s potential for growth. The company’s aim of expanding globally remains constant on delivering quality, service and value to its customers. The company has been able to attain mainly global opportunities and has seen a huge success. The best example of McDonalds utilization of global opportunity was entering into Indian market. The Indian market was a challenging task for McDonalds as the cultural constraints were many, but serving a very large population was also an opportunity. The market was new, and so were the needs of the people. The biggest constraint was the restriction on selling beef and offering a diverse menu for a large Indian population.  The Indian market was a totally different market and introduced the concept of burgers was also a challenging the task. On the other hand, the country was still unexplored by other fast food restaurants, so entering will provide the company the first mover advantage.

Increasing competition internationally and locally was becoming the reason of decline in sales globally. In such situation, the company had to expand and search for a market that offers growth and less competition. After analyzing the objectives, the company sought India as the best option due to the large population and low competition. Although the company faced many challenges, but identified its key customers and their needs and served them accordingly. The majority of the Indian population were lower, and middle class, and the company’s main target was to cater these consumers in order to increase its consumer base.

The company segmented the market and through regular analysis, both qualitative and quantitative, studied the Indian consumers’ lifestyles and preferences and offered a menu serving the diverse need of the Indian population. Pork and beef were prohibited in India, and the image of McDonalds was not positive in the eyes of the Indian consumer. In such situation, the company offered a very diverse menu focusing on serving pure vegetable items.

Due to globalization, the Indian market was becoming attractive for western fast food chains and the market due to its size was very attractive. The Indian market was new to western fast food and was having diverse cultures that was a very big constraint for foreign investors in a fast food industry.  On the other hand, cultural barriers, religious constraints and difference in the buying habits were prominent constraints for these fast food chains. The market was offering potential for a fast food industry in spite of these constraints, and the Indian consumer was evolving with the passage of time offering potential for growth in the industry.

McDonalds entered the Indian market through a joint venture with local business men and almost 90% of its distribution was through franchises. The joint venture was also an obligation for McDonalds as according to the Indian law; foreign companies can only enter their Indian market through a joint venture.

McDonalds entry in India through a joint venture later on becoming a success story, highlighted how effectively McDonalds utilized the global market opportunity after assessing the potential in the market and choosing the right country to operate. The strategy used by McDonalds in capitalizing on this opportunity was made and handled carefully. McDonalds through effective segmentation analyze the preferences of consumers and design the products catering those preferences. This strategy helped in moving forward and rubbing the negative image established in the minds of the consumer. The size of the population was a major attraction because the company will be targeting the second largest population in the world that was directly affecting its sales potential in a positive way............................

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