McDonald’s entrance into the Indian market has been challenging. This 6 page paper analyses this well known fast food chains position in the Indian market using Porters Five Forces and a SWOT analysis to asses the current position including the way it has adapted the menu for the Indian culture and created a supply chain in the region. The paper is based on a case study supplied by the student “Beefing up the beefless Mac: Macdonald's expansion strategies in India”.
Name of Research Paper File: TS14_TEMcDIndia.rtf
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company has managed health growth, but has still not made a profit. To appreciate the position of McDonalds in India we can examine it using Porters Five Forces model and
a SWOT analysis. Porters Five Forces Threat of existing competition If we look at the fast food industry in India there are several competitors. KFC made initial mistakes, leaving
skin on chicken which was distasteful to the Indian market, but they adapted. Initially KFC had lower prices with meals priced at Rs 59 compared with RS 76 - 88
for the McDonalds meals. In a price sensitive market this gives them an advantage. However McDonalds have used loss leaders to change the perception of their food as a premium
price product such as the economeals for RS 29. The aim of this has been to increase the traffic into the stores and keep them coming back. Other competitors have
included Pizza Hut and Wimpy who seek to provide food at low prices due to the economics of the local market. To compete McDonalds have developed a competitive advantage
developing a localised menu that caters for the local taste. Initially the food was assessed by the consumers as bland, but the menu changes created a new image with the
food being seen as unique. Threat of new entrants There are always threats of new entrants; these may be local outlets or the entrance of new chains. The market is
attractive, seen as the second largest market in Asia after China and one where there is a great deal of growth potential. The liberalisation seen in the economy that started
in 1991 has expanded and made entrance to the market easier. However, there are also many barriers, up to 50% of the customers may be illiterate and there are
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