Mc Donald Entry Into India
Entry into India & Economic Liberalization
McDonald’s restaurant in Delhi
In 1996, McDonald 's opened in India for the first time, a country where the majority of the population was Hindu and vegetarian, and the cow was sacred. Many saw it as just another example of the relentless spread of Western corporations into every nation, creating a global system in which wealth was drained out of local economies into the hands of a very few, very rich elite. McDonald’s opened its doors in India in October 1996, demonstrating what the McDonald’s experience was all about. McDonald’s in India was a 50-50 joint venture partnership between McDonald’s Corporation (U.S.A.) and two Indian businessmen. Amit Jatia’s company, Hardcastle Restaurants Pvt. Ltd., owned and operated McDonald’s restaurants in Western India, while Connaught Plaza Restaurants Pvt. Ltd., headed by Vikram Bakshi, owned and operated the North Indian operations.
The entry of McDonald’s in India was perfectly timed. The market had begun to open up. The economy of the country was growing stronger. The customer markets were eager to acquire newer products and use newer forms of services. Foreign brands were valued and perceived to be superior in quality. According to a report of AC Neilson, among the world’s consumers, Latin Americans and Asians were the biggest supporters of globalisation and the value that it added to the various aspects of their lives. It was a favourable situation for McDonald’s because at the time when they entered, India, the Asian Tiger was awakening to the global call. The Indian customer was enthusiastic about the market situation which provided them with numerous choices to choose and pick.
Indian companies for their operational convenience had divided the Indian subcontinent into four zones, the progressive West, the powerful North, the traditional and culturally rich, South and East. McDonald’s opened their first restaurant in the capital of India which is Delhi. The second
McDonald’s restaurant in Delhi
In 1996, McDonald 's opened in India for the first time, a country where the majority of the population was Hindu and vegetarian, and the cow was sacred. Many saw it as just another example of the relentless spread of Western corporations into every nation, creating a global system in which wealth was drained out of local economies into the hands of a very few, very rich elite. McDonald’s opened its doors in India in October 1996, demonstrating what the McDonald’s experience was all about. McDonald’s in India was a 50-50 joint venture partnership between McDonald’s Corporation (U.S.A.) and two Indian businessmen. Amit Jatia’s company, Hardcastle Restaurants Pvt. Ltd., owned and operated McDonald’s restaurants in Western India, while Connaught Plaza Restaurants Pvt. Ltd., headed by Vikram Bakshi, owned and operated the North Indian operations.
The entry of McDonald’s in India was perfectly timed. The market had begun to open up. The economy of the country was growing stronger. The customer markets were eager to acquire newer products and use newer forms of services. Foreign brands were valued and perceived to be superior in quality. According to a report of AC Neilson, among the world’s consumers, Latin Americans and Asians were the biggest supporters of globalisation and the value that it added to the various aspects of their lives. It was a favourable situation for McDonald’s because at the time when they entered, India, the Asian Tiger was awakening to the global call. The Indian customer was enthusiastic about the market situation which provided them with numerous choices to choose and pick.
Indian companies for their operational convenience had divided the Indian subcontinent into four zones, the progressive West, the powerful North, the traditional and culturally rich, South and East. McDonald’s opened their first restaurant in the capital of India which is Delhi. The second
References: • http://ojica.fiu.edu/index.php/ojica_journal/article/viewFile/19/18 • http://www.youtube.com/watch?v=tPuDbz05Bv4&feature=player_embedded • http://www.scribd.com/doc/2303069/Case-McDonalds-India-Launch • https://www.ifama.org/events/conferences/2012/cmsdocs/Symposium/PDF%20Symposium%20Papers/714_Paper.pdf • http://business.mapsofindia.com/india-market/food.html •