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MCDONALD’S “The process by which the company seeks new markets for its current products is defined as Market development” The market development involves expanding into new markets with existing products. This strategy is used by most organizations while thinking of expanding their business because it is low in risk since it requires little capital investment. There are many possible approaches such as follows: • New geographical areas and export markets. • Different packaging sizes for products so that both those who buy in bulk and those who buy in small quantities are catered for. • New distribution channels to attract new customers. • Differential pricing policies to attract different types of customer and…show more content…
Rapid changes in governments, people’s non-trust towards the government and number of Martial Laws and declaration of Emergencies in Pakistan has made this country to be a high risk country for foreign investment. Examples of political factors are changes in government, changes in govt. policies, corruption, type of government, regulations, trade restrictions, tax policies, tariffs etc. • Economic factors: Due to income disparity in Pakistan and the adverse economic conditions, people are tending to save rather than to spend. Moreover, the increase in unemployment rate and inflation rate also supports these assumptions. However, on the other hand, the increase in the wealth of already wealthy people has increased the use of Dine in restaurants which is one of the stimuli for McDonald’s to open a branch in Pakistan. Furthermore, cost of labor has decreased over the years making labor cheap in Pakistan as compared to other countries has also influenced foreign investments. Examples of Economic factors are Growth rate, inflation rate, unemployment rate, interest rates, exchange rates, labor costs, labor supply etc. • Social/Cultural factors: Culture has significant consequences for the attitudes towards the products, attitudes towards purchasing and so on. Nowadays people in Pakistan are more status conscious as compare to old days. Therefore they need more variety to choose from and the McDonald’s have these varieties to offer. Examples of social factors are
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