Essays on Entry of MacDonalds into the Iranian Market Case Study

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The paper 'Entry of MacDonald’ s into the Iranian Market" is an outstanding example of a marketing case study.   MacDonald’ s has stood the test of time as one of the biggest fast-food outlets worlds over. This tradition of high-quality products, delivered over to customers in various markets, has catered for markets for over seven decades. Be that as it may, there are markets that have traditionally been difficult to exploit due to various factors that have hindered entry into the said markets. This has always called for a keener look into strategies that are necessary for MacDonald’ s to be able to meet its goals for increasing its markets, even if it means using further and well-thought-out strategies that have not been exploited before.

Naturally, most multinational companies like MacDonald’ s have always found it easier to use strategies like franchising or using proxy entities to enter markets. While Porter’ s Five Forces points out to franchises as the best strategies for expansion that MacDonald’ s succeeded in using across the US and other big countries, markets like Tehran may beg for a newer strategy like maybe joint ventures (Porter, 2008). Truth be told, the geopolitics surrounding Iran and its market has always been as challenging as can be, and time and again, most multinationals face an uphill task when trying a new entry into the market.

This, coupled with a big difference in cultures, means that for any such entry, there has to be a strategy that meets requirements set aside by the company and thoroughly thought out for the benefit of the market and to ensure that the political situation present does little to interfere with business.

As such, it is prudent to first carry out a thorough analysis of the political, economic, social, legal and cultural or socio-cultural factors that affect business. The conservative nature of the people in the Middle East makes for a big challenge since the entry of multinationals is always a big way through which foreign nationals may be allowed to work in the region. However, their entry always signifies the onset of a group of people with a different set of cultures, which is really a big challenge for both natives and foreign workers who relocate to the countries in the region (Mellahi et.

al. , 2011). 2.0 MacDonald’ s Background Having been set up as a hamburger selling a business by brothers Maurice and Richie MacDonald, the business originally dealt in the line of fast foods. Having an appealing business model, Ray Kroc found it so appealing that he decided to acquire a franchise from it, hence giving it the first franchise outlet. He is the brain behind making MacDonald’ s go international. The number of products MacDonald’ s offers range with the type of market where it is situated.

For instance, it openly sells beef products like hamburgers in the US, but this is avoided in India due to the different cultural implications in the locations. Despite this, the general wide range of products includes chicken products, hamburgers, cheeseburgers, milkshakes, smoothies, soft drinks and French fries. It is with this regard that Iran can also only accept a certain range of products due to cultural implications (MacDonald’ s, 2016).


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