Executive Summary
The focus of this report is the challenges, opportunities, and risks involved in doing business in India. India is a growing market in the world, with the fastest-growing fast food industry across the globe. The fast food business is selected due to its growing nature, especially in Indian markets. In this report, the macro environmental factors are considered, which are political, legal, social, competitive, and economic.
The culture of India is also studied including the elements like clothing, languages, art, architecture, and religions. The country is famous for its diversified cultural heritage. The advantages of doing business in culturally diverse India are many.
The business idea of a fast food company must be unique and innovative, as there is a lot of competition in the Indian market. Therefore, the product selected is unique and in keeping with the local taste of Indian consumers.
The global industry of fast food is the only industry that has grown even after the recession, mostly because of its low cost and easy accessibility. The local market of the Indian fast food industry is also growing at a rate of almost 34%. Careful planning and thoughtful strategy are necessary due to the prevalence of already existing players in Indian markets. Therefore, a franchise is selected as an entry mode in India for fast growth and expansion in Indian markets.
In this report, emphasis is made on analyzing opportunities, challenges, and conditions related to entering the fast food business in India. Today, India is considered a wonderful destination for many foreign organizations across the world. Organizations can reduce their costs by doing business in a country where there is a large number of highly educated graduates with lower level of pay as compared to western countries. The organizations find not only lower pay rates, but also cheap raw material. That is the reason that India is now recognized as the world’s largest market for goods and services.
Running a fast food business in India has huge opportunities like low labor costs in India—(US$ p.a) 2200, compared to 3600 in China, 6600 in Brazil, and 8500 in Poland (“Doing Business,” 2008). India also has the world’s largest number of English-speaking scientists and engineers (“Doing Business,” 2008). There is wide availability of skilled workforce, as the country, as of 2010, has 544 universities and 31,324 colleges (Sunder, 2012, p. 370). The government of India is encouraging foreign investment, as new investment of the firms is financed by banks with credit of 27.7%, which is 14.7% globally (“Doing Business,” 2008, p. 5). The country has good infrastructure, attracting foreign investors, with the largest road networks and fifth largest installed power capacity, at 123GW (“Doing Business, 2008, p. 5).
This report will focus on the conditions, opportunities, and risks involved in entering the Fast Food Industry in India.
The focus of this report is the challenges, opportunities, and risks involved in doing business in India. India is a growing market in the world, with the fastest-growing fast food industry across the globe. The fast food business is selected due to its growing nature, especially in Indian markets. In this report, the macro environmental factors are considered, which are political, legal, social, competitive, and economic.
The culture of India is also studied including the elements like clothing, languages, art, architecture, and religions. The country is famous for its diversified cultural heritage. The advantages of doing business in culturally diverse India are many.
The business idea of a fast food company must be unique and innovative, as there is a lot of competition in the Indian market. Therefore, the product selected is unique and in keeping with the local taste of Indian consumers.
The global industry of fast food is the only industry that has grown even after the recession, mostly because of its low cost and easy accessibility. The local market of the Indian fast food industry is also growing at a rate of almost 34%. Careful planning and thoughtful strategy are necessary due to the prevalence of already existing players in Indian markets. Therefore, a franchise is selected as an entry mode in India for fast growth and expansion in Indian markets.
In this report, emphasis is made on analyzing opportunities, challenges, and conditions related to entering the fast food business in India. Today, India is considered a wonderful destination for many foreign organizations across the world. Organizations can reduce their costs by doing business in a country where there is a large number of highly educated graduates with lower level of pay as compared to western countries. The organizations find not only lower pay rates, but also cheap raw material. That is the reason that India is now recognized as the world’s largest market for goods and services.
Running a fast food business in India has huge opportunities like low labor costs in India—(US$ p.a) 2200, compared to 3600 in China, 6600 in Brazil, and 8500 in Poland (“Doing Business,” 2008). India also has the world’s largest number of English-speaking scientists and engineers (“Doing Business,” 2008). There is wide availability of skilled workforce, as the country, as of 2010, has 544 universities and 31,324 colleges (Sunder, 2012, p. 370). The government of India is encouraging foreign investment, as new investment of the firms is financed by banks with credit of 27.7%, which is 14.7% globally (“Doing Business,” 2008, p. 5). The country has good infrastructure, attracting foreign investors, with the largest road networks and fifth largest installed power capacity, at 123GW (“Doing Business, 2008, p. 5).
This report will focus on the conditions, opportunities, and risks involved in entering the Fast Food Industry in India.