The paper “ McDonald's - SWOT and Competitor Analysis, International Strategy” is a delightful example of a case study on marketing. McDonald's is a renowned company that operates in more than 100 countries. The company’ s international system consists of both company-owned and franchised restaurants. The franchised restaurants are usually owned and operated under structures such as developmental licenses, conventional franchisee or affiliates. McDonald’ s restaurants worldwide provide a considerably identical menu, but there are geographic variations meant to suit local consumer tastes and preferences (Jones, 2010). One of the countries where McDonald decided to expand its operations in India.
This paper will give a critical examination of McDonald’ s strategic framework especially with respect to expansion strategies in India. To achieve this, a SWOT analysis, Competitor analysis and International strategy of the company will be assessed. SWOT analysisAccording to Jones (2010), McDonald’ s business model in India is based on four major pillars namely; fresh food, fast service, affordable prices, and a limited menu. The company had earlier invested in the development of a unique cold chain which resulted in the pillar of fresh food. Affordable pricing is a pillar that had been deemed to differentiate the company from its competitors.
The limited menu chain is subject to change as a result of the preferences and eating habits of the Indian community. StrengthsThe strengths of McDonald's in the growing market of India include supply chain management. An appropriate supply chain allows success in the competitive market. The company’ s supply chain structure allows it to reduce its costs thus maximizing on profits. In turn, this helps maintain high-quality standards. McDonald invested heavily in its supply chain model way before it commenced business in India as a way of establishing its delivery mechanism.
A suitable supply chain structure coupled with modern technologies brought significant changes in the food industry in India (Pangarkar & Subrahmanyan, 2011). Joint ventures with local distributors and suppliers have also helped McDonald's to be proactive and thus reduce costs, enhance quality and build intimacy in the market. Innovation and flexibility in products is a strong point of McDonald’ s. McDonald's has properly adapted to the Indian market especially with regard to meeting the cultural and religious demands of the customers.
The company decided to introduce vegetarian products and drop beef, hamburgers and mutton from its menu as per the religion, lifestyle as well as eating habits of the Indians. There is also the issue of 100 percent vegetarian sauces and different packages for children and families. The company responds fast in innovative ways. Employing local people is also a plus that creates trust among the customers. Affordable pricing is a strong point and a strategy that has widened McDonald’ s customer base in India. The availability of different price strategies for the customers and various foods to match the target market is a positive move by McDonald (Pangarkar & Subrahmanyan, 2011).
Flexible and innovative offers attract customers. WeaknessesA limited menu is a weakness of McDonald's. The menu offered by McDonald's is somehow limited compared to the market demands. The Indian culture is quite diversified, with various regions having different religions. The differences are a challenge to the company as it requires a high level of diversification. McDonald's is also deemed to cause global warming as a result of the packaging material it uses, which is harmful to the environment.
The company is therefore not accomplishing its social responsibility with regard to conserving the environment. There is also an issue of inefficiencies in-home delivery where the speed is not good thus hampering sales (Jones, 2010). OpportunitiesNandini (2014) asserts that McDonald's can easily expand in the Indian huge market. Its expansion strategies and business model of expansion offers an opportunity to improve its market share. This can be possible by opening outlets in other parts India. There are many parts in India that are not served by McDonald and hence there is huge potential of growth.
A large population and double income group can also be seen as opportunities. Providing out-of home breakfast, better home delivery and environmentally friendly packaging could also pose opportunities for McDonald's. ThreatsA major threat to McDonald’ s operation in India is political and religious confrontation. There is also an issue of changing customer’ s preferences. Customers may prefer more healthy food as opposed to fast foods as a way of dealing with health issues such as obesity.