multi domestic strategy - mcdonalds strategy in india

1. ASHWIN(16382017)
AVISHEK(16382018)
MULTI-DOMESTIC
STRATEGY

4. A company essentially tailors their product
to each specific country with close attention
to customer’s religion and other local
characteristics.
Also called as “LOCALIZATION STRATEGY”
Multi-domestic strategy

5. BARLETT & GHOSHAL MODEL OF MULTI
DOMESTIC STRATEGY
PRESSURE OF LOCAL RESPONSIVENESS PRESSURE FOR GLOBAL INTEGRATION

6. CHARACTERISTICS :
 OFTEN USED IN CONSUMER PRODUCTS AND FOOD INDUSTRIES.
 MAIN COMPETITIVE STRATEGY IS DIFFERENTIATION.
 MNE’S WANTS TO BE PERCEIVED AS LOCAL COMPANY.
PROBLEMS :
 LITTLE OR NO ECONOMIES OF SCALE.
 LITTLE OR NO LEARNING ACROSS DIFFERENT REGIONS.
 PRODUCT DESIGN / KNOWLWDGE / MARKETING EXPERTISE IS NOT TRANSFERRED
AMONG SUBSIDIARIES IN DIFFERENT COUNTRIES.

10.  Mc.D entered the indian market through joint venture with two local
entrepreneurs.
 This clearly shows that Mc.D focuses in local adaptability rather than global
integration.
 Most of the Indians are hindus/muslims/vegetarians ; as a result,many of them
do not eat BEEF / PORK.
 Therefore Mc.D did not introduced beef/pork products to INDIA.
 Instead,Mc.D customized their menu to attract indian customers by introducing
chicken and vegetarian based burgers.
 Also to make products affordable to indian customers , Mc.D lowered their
prices.
McDonald’s multi-domestic strategy

11.  Can meet the specific needs of each market more
precisely.
 Can respond more swiftly to localized changes in
 Can target reactions to the move of local rivals.
 Can respond quickly to local opportunities and threats.
 Customize product offerings and market opportunities in
accordance with local responsiveness.
ADVANTAGES :

12.  Inability to realize local economies.
 May lead to over adoption as condition changes.
 Limited information sharing also reduces the possibility
developing knowledge based competitive advantage.
 Higher production and distribution cost.
 Not conductive to worldwide competitive advantage.
DISADVANTAGES :