Question

In: Operations Management

Pick a MNE that has YET to enter the given country and develop a MARKET ENTRY...

Pick a MNE that has YET to enter the given country and develop a MARKET ENTRY STRATEGY. For example, imagine I pick Shake Shack as entering the Spanish Market. I would want to do an analysis of Spain and see if its a cultural fit, what is the VALUE PROPOSITION of the product at home and what will it be abroad? What market position will we have and how can we differentiate? Is it culturally applicable or does it require a change in behavior?

Solutions

Expert Solution

Mc Donald's in Yemen, Western Asia

McDonald's is yet to enter into the West Asian country of Yemen. It can enter into the Yemen market by following the Franchise model which McDonald's follows in many of its Asian markets. The franchise method of market entry has proved to be successful in the Asian market for McDonald's.

McDonald's can offer a value proposition of tasty and hygienic food which is available at affordable prices and can be had on the go. This has been the value proposition of McDonald's in all the nations it serves currently. This has been synonymous with the brand McDonald's and it must continue with the same value proposition in Yemen as well.

Low cost strategy and the image of a fast food,family restaurant is the positioning of McDonald's currently. To differentiate, it can start offering products customized to the middle eastern tastes and costs significantly lower to match the purchasing power of Yemen citizens.

The McDonald's menu which is offered in its American and European markets may not be culturally suitable in the Yemeni markets due to the strong Islamic culture predominant in Yemen. This would require tweaks to the menu to make it suitable in the Islamic culture present in Yemen. It would mean no items made of Pork, Halal ingredients and no alcohol(McDonald's Germany serves beer).

Also, few items in the menu customized to include the taste preferences of the Arab world would also help to gain acceptance in Yemen.


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