Mcdonalds Strategy

ISB STUDY GROUP F3 - COMPETITIVE STRATEGY PROJECT

McDonalds

The India Story

Table of contents

One page outline pg 4

The History of McDonalds pg 5

The strategic game premise: The Indian context pg 5

The Indian fast food industry

1990s-2000 Porter’s five forces model pg 7

Since 2000 Porter’s five forces model pg 7

Entry into Indian market pg 8

Strategic Game and Competitive Advantage pg 8 SWOT Analysis pg 10

Activity system map pg 11

Business model innovation

Key Initiatives by McDonalds India pg 13

Local Sourcing pg 13

Setting Standards in Supply Chain pg 14

Value offering to Customers pg 16

Community Involvement pg 17

Advertising and Promotion pg 17

Conclusion pg 18

Exhibits pg 19 - 27

References pg 28

One page outline

The Indian consumer market truly opened up to the world in the 1990s. McDonalds, which already had a worldwide presence, decided India was going to be the next big thing for it. But it did realize that this market would be hard to penetrate.

Given the volatile political scene, lack of interest in western fast foods and a relatively low number of target customers (big cities with affluent people), McDonald bet on the future of Indian consumer market rather than the present.

McDonald invested both time and money to create a seamless supply chain that will feed its expansion in the future. It found the right partners in local players. They started from farmers, to transporters, to processors to the franchisee that sold the final product. This task was made even more difficult due to lack of experience in the domestic markets of India.

By taking these crucial steps though, McDonald managed to strengthen its footing even before the first burger was served. For years to come, McDonald adapted and expanded in order to encompass India’s big cities. Currently,...