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McDonald's Expansion in Nigeria

   

Added on  2020-01-07

6 Pages1041 Words198 Views
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GLOBAL POLICY ANDATTRACTIVENESS
McDonald's Expansion in Nigeria_1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Rationale for International Expansion........................................................................................1Application of Porter Diamond...................................................................................................1CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
McDonald's Expansion in Nigeria_2

INTRODUCTIONIn the present world of globalization, international expansion of business constitutes to beone of the most popular steps. However, it is highly imperative for these businesses to assess theattractiveness of the target market or country. These decisions shall be undertaken in a wisemanner to ascertain its own competencies in relation to the opportunities available in the targetmarket. The present report shall study the international expansion of Mc Donalds in Nigeria, thereasons attached to such a decision and ascertaining the country attractiveness. Rationale for International ExpansionOne of the primary determinants which shall push Mc Donalds to expand in Nigeria isthat the country has reflected great potential, owing to a high pace economic growth. Moreover,Nigeria is the biggest country of Africa, which has still not been covered by this brand. It hasbeen ascertained that the economy of Nigeria has expanded 8.2 percent per year, thereby makingits per capita income to $1725. Moreover, considering the popularity of the brand Mc Donaldsand the number of outlets it has already opened across the globe, Nigeria seems to be one of thepotential markets (About time! Mc Donalds Plans to Expand to Nigeria, 2014). It has beenascertained that the food franchise opportunities is much higher in Nigeria, considering thesuccess of other brands such as KFC or Chicken Republic. In respect to these trends it can bestated that there exists a market gap which Nigeria has reflected, considering the presence ofpotential consumers and the opportunities which has only been exploited to some extent by otherinternational fast food brands. Thus, in order to bridge this gap and further make an expansion inthe African continent, Nigeria presents great potential for Mc Donalds expansion. Application of Porter DiamondOn the basis of Porter Diamond Model, the country attractiveness of Nigeria can beascertained. Further, this assessment shall be undertaken by analysing the manner in whichnational advantages being enjoyed by Mc Donalds are translated into international advantages.Considering the strong reputation and effective strategies being employed by Mc Donalds it canbe stated that these elements shall prove to be highly supportive in establishing the brand inNigeria. The determinants of this model are:Factor Conditions: The factor conditions reflected by Nigeria are highly lucrative as theeconomy of the country has been growing with a high pace. The consumers present in1
McDonald's Expansion in Nigeria_3

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