The article “How McDonald 's conquered India” tells how McDonalds was able to penetrate successfully into the Indian market. First let’s revise some facts about McDonalds and India. McDonalds’ is the biggest fast food restaurant in the world, with presence in 119 countries primarily selling hamburgers, French fries and soft drinks as their main menu. India is a country located in Southeast Asia with a population of 1.1 billion people. It has a market based economy since the 90’s and it is federal parliamentary democratic republic with the president and prime minister as head of the state and government respectively. India has a common law legal system inherited from the British colony era and Theocratic laws in regions. India has diversity of religious beliefs and practices.
…show more content…
If you see the GNI of India that has been increasing in the last three years plus its population that represents a great market for any global company it seems obvious why McDonalds wants to make business here but it did not start recently, McDonalds bet for India in 1994 according to the article. Even after almost 20 years, India now represents only a small portion of global sales and revenues of McDonalds, its future is what makes it a great market opportunity. India is an emerging market, and the usual problems with emerging markets such as Brazil or Indonesia are demographic, technological, political, or cultural environment. Policy uncertainty, corruption, bureaucracy, and bad infrastructure keep away big companies that are not willing to take on risk. Global companies want an immediate return on investment and countries like India don’t fit into this
If you see the GNI of India that has been increasing in the last three years plus its population that represents a great market for any global company it seems obvious why McDonalds wants to make business here but it did not start recently, McDonalds bet for India in 1994 according to the article. Even after almost 20 years, India now represents only a small portion of global sales and revenues of McDonalds, its future is what makes it a great market opportunity. India is an emerging market, and the usual problems with emerging markets such as Brazil or Indonesia are demographic, technological, political, or cultural environment. Policy uncertainty, corruption, bureaucracy, and bad infrastructure keep away big companies that are not willing to take on risk. Global companies want an immediate return on investment and countries like India don’t fit into this