Marketing McDonald’s in India Harvard Case Solution & Analysis

Rivalry among Competitors:

Rivalry among the industry competitors in the fast food restaurant is very high. In accordance with the case there are many other fast food restaurant in India that are competing against McDonald, which includes KFC, Nirula’s, Subway , Basin-Robbins and other fast food restaurants. The industry of fast food makes it difficult to take the competitive advantage because all the fast food restaurants that are operating in India have unique skills in term of products’ innovative ideas that are different from the other players in the industry. Fast food operators in India compete on the basis of quality, price, location, food range and presentation. Therefore, their unique and innovative abilities make them highly competitive for each other.

Bargaining Power of Suppliers:

The bargaining power of suppliers in the fast food industry is low. This is because there are many suppliers available in the fast food industry, which provides the fast food industry suppliers an opportunity to bargain on the prices with the suppliers available in the market.

Bargaining Power of Buyers:

The bargaining power of the buyers in the fast food industry is medium. This is because the numbers of fast food restaurants both local and international are increasing in India, which makes the switching cost of the buyers low in the industry and the customers are more inclined towards prices.

Threat of Substitute Products:

The threat for substitute products for fast food restaurants is high in India. The reason of this high threat is that fast foods are discretionary items that can be easily substituted by other types of meals. These substitute products may include meals supplied at convenient stores, meals prepared at home, etc. As customers have become more aware of fast food effects on the health so the other substitutes are becoming more and more attractive. However, fast food restaurant have spent a large amount of money in marketing and promoting healthier fast foods to compete with other available options.

Threat of New Entrants:

The threat of new entrants is low. The reason for this is that there are many competitors that are entering in the fast food industry but on the global scale the giant like McDonald is still in advantage. Secondly, there are large numbers of player already in present in the fast food industry that are competing against each other and these big players also have economies of scales, distribution channels and technological advancement advantages; which makes it difficult for new competitor to enter the industry.


Consumer and competitor analysis:

Consumer analysis:

Consumer analysis is an important factor in the success of any product. India is the second most populated country in the world. India has more than one billion population. Three fourth Indian population lives in urban areas. Although the per income of the people is low but still they like to go out and eat .In India MacDonald identifies their customer based of their need, ability to buy, buying motives and buying process. MacDonald analyzes the consumer by targeting them in different segments of the market. Consumer in India are getting brand awareness through Internet, TV, Newspaper, Radio, Magazine etc. and its middle class is getting bigger in size day by day as a result of boost in the economy of India.



Competitor analysis:

MacDonald has  been the leading fast food operator in India. KFC  is one of the major competitor of MacDonald in the quick service field of  burger segment in India. Some other competitiors of MacDonald in India includes: Dominoz, Pizza Hut, Subway, Jumbo King and other local fast food opertaors. Its market share is being taken away because of these rivals in India and the MacDonald is also facing new challenges from these rivals. Jumbo King compete in the fast food industy by using back to basics approach of quickely serving up burgers for time pressed consumers. MacDonald competes against its rivals by targeting their customers on the basis of three diffetrent segmentation according to the need, preferences and taste of these customers. MacDonald in India held a leadership position in India because of uniquenss and variety in the range of products that MacDonald offered, which gives it  an advantage over its rivals.

2) Internal Analysis:

Porter’s value chain

Value chain is processes of activities which create value for an organization. These activities are classified into primary and secondary activities....................................

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