Mcdonald 's, Pizza Hut Cook Up New Plans For India Essay

Mcdonald 's, Pizza Hut Cook Up New Plans For India Essay

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I selected an international business article from The Wall Street Journal titled “McDonald’s, Pizza Hut Cook Up New Plans for India” for my article summary assignment. This article is relevant to our course because it covers American fast food companies expanding in India. In order to be successful in foreign markets, it requires adjusting to the foreign country’s culture and customs in order to be successful in a global market. It also requires innovation and adaption to serve the local people in foreign countries, and they need strategies and a vision to address current trends and local competition.
The article discusses how the international fast food chains once blazed the trail in India when they arrived about “15 years ago” (Rana). During this time, the big global brands such as Domino’s Pizza, McDonald’s, and Yum Brands that includes Pizza Hut and KFC built too many stores due to the anticipation of a larger growth. Now, the market growth has slowed for these original global brands in India. Growth is sluggish because there is more competition and choices for customers now. The people of west and south India now have choices of “Starbucks, Burger King, Wendy’s as well as homegrown upstarts like spicy-potato slider chain Goli Vada Pav, team chain Chaayos, and India’s answer to Starbucks, Café Coffee Day” (Rana). In addition, the growth may be slower than projected because so many of the “Indian people live below the international poverty line of $1.90 a day, making fast food an expensive treat” (Rana).
Customers are accusing the big chains such as McDonald’s, Domino’s, and Pizza Hut for not keeping up with their changing tastes, and the new competition has delivered “cooler options” (Rana) to select from now. The...

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...heir growth, so they are working to respond to this trend by introducing new products such as “Domino’s spicy banana pizza for local palates” (Dulaney). In order to respond to the recent threat of competition, they will need to reinvent and respond to their international customers to regain their market growth.
As trends emerge in domestic and foreign countries, companies need to follow this information to seize opportunities and identify possible threats in order to adapt and survive through the changes of that time. Those that do not will lose market share and eventually forced out of business. Following the trends may lead to creative and innovative ideas that put your business in front of your competition. Most of all, it is necessary in order to be successful and continue economic growth, and McDonald’s is a good example of a company that has done that.

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