McDonald’s India – plotting a winning strategy

Business strategy.

The case has been written with the objective of enabling the students to understand the dynamics of a rapidly changing emerging market. It is structured for use at a Master-level course and an MBA audience in the subject of Business Strategy.

The case details the growth story of American fast food chain McDonalds in West and South India markets. Westlife Development Limited (WDL) operates McDonald’s chain of quick service restaurants (QSR) in these markets; they entered the markets in the year 1996 and since then have adopted various market strategies such as investments in multiple format QSRs, aggressive rollouts of new QSRs, increase in product variants etc. for a sustained growth trajectory. However, the increased competition from both the national and international QSR brands and the new segment of competition from “techie” food aggregators challenges their prospects to maintain a number one position in these markets. As Amit Jatia – the Vice President of WDL − prepares his presentation for the scheduled Executive Leadership Team meeting, he seeks answers to two prime questions a) How could WDL once again regain the number one status in these markets? b) What best strategies the team needs to adopt to remain relevant to the Indian consumers?

The case study should enable the student: 1. To comprehend the complexities of the Indian QSR market and its competitive dynamics 2. To analyze the factors contributing to the growth of the India QSR sector. 3. To identify the market factors that led WDL to adapt their strategy to the market 4. To understand the significance of business strategy localization as adopted by WDL in the markets of West and South India. 5. To evaluate sources of competitive advantage for McDonald’s in the West and South India markets.

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CSS 11: Strategy.