The paper "McDonald’ s in the Indian Market" is an outstanding example of a marketing case study. In India, the fast-food industry has become very saturated and the market is still facing some concerns regarding the fast foods’ consumption as well as the associated health implications. As mentioned in the case study, McDonald’ s has been a market leader not only in India but also globally. Still, the company has found it challenging to retain its position as a market leader due to the level of competition within the fast-food industry that is rapidly increasing. SWOT SWOT Analysis Considering that the India fast food market has been growing, the following is a SWOT analysis of McDonald’ s in the Indian market as evidenced in the case study. StrengthsThe McDonald’ sbrand image has continually made the company increasingly competitively strong.
Besides that, the company’ s market diversification is strength considering that the company has outlets in scores of regions across the globe. Market diversification has enabled the company to lessen the market-based risks. Besides that, the company has an all-inclusive standardized process system that results in product consistency as well as business efficiency.
This is considered as a strength because it demonstrates that McDonald’ s can effectively maintain its operations. Besides that, the company is an industry leader, not only in India but also globally. As indicated in the case study, McDonald’ s is the largest fast-food marketers in the world. As of 2000, the company had a presence in over 120 countries operating close to 30,000 restaurants and with more than 1.5 million employees. Furthermore, the company had assets worth over US$21.7 billion and was continually refer to as a savvy marketer. The company’ s products’ innovation and flexibility enabled it to meet the Indian customers’ cultural as well as religious demands.
As mentioned in the case study, McDonald’ s introduced vegetarian products to its menu in order to satisfy the Indian customers’ religion, lifestyle, as well as eating. McDonald’ s understands the preferences of its Indian customers and has been able to respond swiftly by means of innovative ways. Supply chain management is one of McDonald’ s strengths, which has enabled the company to reduce its cost, leading to improved profits. According to the case study, efforts by the company to create a supply chain structure that is well-organized resulted in major changes in India’ s fast food industry since the performance was raised.
The supply chain has enabled McDonald’ s to meet the needs of its consumers by maintaining the nutritional value and freshness of its products. Other strengths include improved customer service and affordable prices. WeaknessesSome of the weakness includes the ability of the competitors to influence McDonald’ s pricing strategies. Furthermore, although McDonald’ s standardization facilitates consistency, it also results in reduced flexibility of the company to respond to market variations.
A slowdown in the restaurant industry would enormously affect McDonald’ s because the company has a low product diversification (focuses only on food and beverage products). Among the internal weaknesses of McDonald’ s is the high turnover of its employees. According to Mishra and Dwivedi (2013), McDonald’ s benefits and compensation is very poor; therefore, most employees take long to get motivated. Another weakness is attributed to the limited menu since the Indian's fast food concept is somewhat different as compared to the Western market; for instance, Muslims do not consume pork while Hindus do not consume cow meat.
Other weakness includes home delivery inefficiencies and the need to fulfill social responsibility. OpportunitiesThere are numerous opportunities for McDonald’ s; for instance, the company should its expansion strategies to open new outlets in different parts of India. India provides the company with a business growth opportunity thanks to its larger population and customer sophistication. Considering that the majority of Indians live in the large cities and the changing gender roles have increased the desire to have out-of-home breakfast. Therefore, McDonald’ s should start serving breakfast in all its outlets located in the cities.
Another opportunity is home delivery, which offers the company a chance to improve its customer base. This can be achieved by improving their delivery services and expanding its home delivery services across India. Environmental friendly packaging offers McDonald’ s an opportunity to improve its reputation and avoid any form of legal issues with the government and environmental agencies in the future (Greenspan, 2015). ThreatsSome of the threats to MacDonald’ s in India include political and religious confrontation: as mentioned in the case study, the company has experienced numerous challenges.
There was some mistrust of the products offered by the company, which some Indians believe were contrary to the religious codes of Muslims and Hindus. Another threat is the changing preferences amongst the customers; for instance, some of the customers have started shifting towards healthy food. MacDonald’ s also faces a threat from the increasing number of local companies and other multinational companies like KFC and Domino.
Greenspan, R. (2015, October 15). McDonald’s SWOT Analysis & Recommendations. Retrieved from Panmore: http://panmore.com/mcdonalds-swot-analysis-recommendations
Kannan, S. (2014, November 19). How McDonald's conquered India. Retrieved from BBC: http://www.bbc.com/news/business-30115555
Kashyap, M., Kashyap, K., & Sarda, D. A. (2013). Study of Growth of Fast Food Industry with Reference to Shift in Consumer’s Buying Habits in Nagpur City. International Journal of Application or Innovation in Engineering & Management, 1-7.
MinalKashyap, KomalKashyap, & Sarda, D. A. (2013). Study of Growth of Fast Food Industry with Reference to Shift in Consumer’s Buying Habits in Nagpur City. International Journal of Application or Innovation in Engineering & Management, 1-7.
Mishra, B., & Dwivedi, S. (2013). Success Story of Macdonald’s in India: Story of It’s Struggle in Indian Market. Asian Journal of Science and Technology, 4(7), 66-70.