Modes of Market entry:
There are different ways a company can start opening their business in another country
for example Franchising,licencing,Joint Venture,wholly owned subsidiary etc.
But Mcdonalds entry to India involved join venture and Franchising technique.
Franchising is the right a firm acquires from another firm that allows them to do particular business activities, such as service or selling the good , under the name of a specific firm, e.g. McDonalds.
in Franchising a company follows strict rules from its parent company.
mcdonald’s have 210 stores in India.
Mcdonald’s all over the world has almost 85% of franchises.
the benefit of franchising is that in short period a company expands its business.the risk involved for parent company to move into another country and invest heavily can some times be too risky but when local people start doing it by themselves,the risk level is minimised.
quality control is difficult with franchising.
Although Mcdonald’s indian is a 50-50 joint venture company managed by indian.