Mcdonalds in India

In: Business and Management

Submitted By wizard167
Words 14472
Pages 58
THUNDERBIRD
THE GARVIN SCHOO L OF INTERNATIONAL MANAGEMENT

A07 -05 -00 15

KISHORE DASH

McDoNALD's IN INDIA
I do not see any thing wrong with McDonald\ doing business in India. A/fer all, if ts not McDonaldization that we know of 11 is a Big MaCcommodatw n. A Senior Bureaucrat in New Delhi

In October 1996, McDonald's opened irs ttrst Indian ourlec in Vasant Vihar, a n affluent residential colony in India's capital, New Delhi. As of November 2004 , McDonald 's has opened a total of 58 restaura nts, mostl y in the northern a nd western parr of India (Exhibit 1). 1 While McDonald 's opened 34 restaura nts in five years (by 2001 ), 58 restaurants in eight yea rs (by 2004), it is now pla nning to add more than 90 new restaurants in the next three years. 2 Although the initial scenes of crowds lining up for days outside the M cDonald 's res taurants in Delhi and Mumbai are no longer seen, Indian consumer response to McDonald's products still remains very strong. The ten McDonald's I visited in Mumbai and Delhi were pac ked with young people, children , and yo ung p a renrs enjoying ice c reams, sp icy potato wedges (instead of the usual frenc h fries), and Happy M ea ls. The growth of M cDonald's in India is not as rapid as in China (Exhibit 4) . Bur irs growth is nevertheless impressive . How did McDo nald's d o it? How d id a hamburger cha in becom e so promi nent in a cultural z.one dominated by non-beef, non-pork, vegetarian, and regional foods such as chofa bhatura, kababs, bhaji, samosa, dosa, vada, sam bar, bhefpuri, and rice? The answer to this question lies in McDonald's carefully pla nned entry and expansio n strategy in accordance with I ndia's c hanging political, economic, and culw ral landscape in the 1990s.

The Indian Food Service Industry
With more than ftve thousand e thnic co mmunities represenred , India has a very diverse population.…...

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