Market Entry Strategies for a Fast Food Company - Essay Example

However, studies shows that the importance of taking into consideration the context of market entry constituted by the host countries’ institutions. The institutional context involves both informal institutions such as norms and culture and formal institutions such as laws and regulations. Collectively these institutions formulate the “rules of the game” in society, thereby constraining and enabling firm behavior and foreign market entry strategies. However, entry to a foreign market comes at a cost due to challenges posed by the institutional contexts of emerging market, which are often less familiar to developed country firms, weaker and less market-supporting and less stable.

The four most common modes of foreign market entry are licensing/franchising, exporting, and joint venture and Greenfield acquisitions. Therefore, this paper will analyze McDonald’s market expansion for its products in the emerging market of China. The paper will consist of two sections: the first section will be a market analysis of China and the second section will be an exploration of potential market entry strategies by McDonalds. Market AnalysisGeneral InformationThe People’s Republic of China has a total land area of approximately 9,596,960 square kilometers.

It is considered the third largest country in the world after Russia and Canada. It has a coastline of approximately 14,500 kilometers. China is situated in eastern Asia to the West of Yellow Sea, Korea Bay, East China Sea, and South China Sea.