This document discusses McDonald's use of a multi-domestic strategy in India. A multi-domestic strategy involves tailoring products for each local market by considering local customs, religions, and customer characteristics. For the Indian market, McDonald's entered through a joint venture, customized its menu to include more vegetarian and chicken options over beef/pork, and lowered prices to attract Indian customers. This approach focused on local adaptation over global integration and allowed McDonald's to better meet the specific needs of the Indian market.

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 :