Mac Case Analysis
Do you think McDonald’s has performed well in India, and why?
A General Environment Analysis is used to determine the liabilities and threats that McDonald’s faced when entering India and its ability to overcome them. This will also reveal opportunities that McDonald’s had, indicating success if it was able to capitalize on them.
Demographic
Being the second most populous country in the world, India is expected to be the only country where population growth will continue for the next 50 years. In addition, the trend of increasing urbanization and the rise of the middle class with higher disposable income and greater demand for higher quality goods, provide a huge potential customer base to be tapped on. However, the trend of increasing income inequality may limit the expansion opportunity.
Sociocultural
The increasing number of working wives resulted in lesser time to prepare meals helped to shape the eating habits of Indians towards more outside food than home-cooked food. Furthermore, there is also a shift in attitude towards embracement of the American culture within the rich and middle class Indians. This has not only helped McDonald’s to overcome its liability of “foreignness” but further provide an opportunity for it to exploit in its marketing and positioning. Conversely, diverse food habits purposes (e.g. 83% do not eat pork or beef) due to religious purpose proved to be a challenge for McDonald’s.
Political/Legal
The economic liberalization in the 1990s provided an excellent opportunity for foreign MNCs to enter the once pro-national market when the India government started to adopt a more market-based economy approach. These include the privatization of some state-owned companies, providing a more competitive business field in India. Incentives such as lower corporate tax, amendments to the Foreign Exchange Regulation Act and lower import duties on machinery also pointed towards more foreign-friendly policies.
Technological
Lack of the
A General Environment Analysis is used to determine the liabilities and threats that McDonald’s faced when entering India and its ability to overcome them. This will also reveal opportunities that McDonald’s had, indicating success if it was able to capitalize on them.
Demographic
Being the second most populous country in the world, India is expected to be the only country where population growth will continue for the next 50 years. In addition, the trend of increasing urbanization and the rise of the middle class with higher disposable income and greater demand for higher quality goods, provide a huge potential customer base to be tapped on. However, the trend of increasing income inequality may limit the expansion opportunity.
Sociocultural
The increasing number of working wives resulted in lesser time to prepare meals helped to shape the eating habits of Indians towards more outside food than home-cooked food. Furthermore, there is also a shift in attitude towards embracement of the American culture within the rich and middle class Indians. This has not only helped McDonald’s to overcome its liability of “foreignness” but further provide an opportunity for it to exploit in its marketing and positioning. Conversely, diverse food habits purposes (e.g. 83% do not eat pork or beef) due to religious purpose proved to be a challenge for McDonald’s.
Political/Legal
The economic liberalization in the 1990s provided an excellent opportunity for foreign MNCs to enter the once pro-national market when the India government started to adopt a more market-based economy approach. These include the privatization of some state-owned companies, providing a more competitive business field in India. Incentives such as lower corporate tax, amendments to the Foreign Exchange Regulation Act and lower import duties on machinery also pointed towards more foreign-friendly policies.
Technological
Lack of the