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The first case is about the establishment and expansion strategies of McDonald’s in France. The company’s first restaurant was established in the nation in the year 1979 in Strasbourg. Since then the company has been continuing to expand its operations steadily through the provision of the best quality of services and value to the customers. For the company which is based in the US, France has demonstrated the highest market growth with the establishment of 1161 numbers of restaurants in 2009. This was possible despite the numerous cultural differences existing between the two nations. The US entry into the French market was perceived as an invasion of American culture into the country which was itself known for its huge cultural heritage and traditions (ICMR, 2011). The theories which would be focused at for discussing the strategies of the company are Geert Hoftsede’s cultural dimensions. The next case would discuss the details of Aircel’s promotional strategy. This strategy was launched in the year 1999 by the India based mobile operator Aircel. Aircel made entry into the highly competitive Indian market in the year 1999. Innovation formed the key component of its branding strategy. It communicated and connected with its customers using the simplest and the most thoughtful advertising campaigns. The case tries to discuss the various marketing strategies that were undertaken by the company for its late entry into the Indian market and for increasing and expanding its subscriber base. It was one of first telecom operators to be advertising on Face book. The various promotional strategies undertaken by the company would be discussed in the project. The promotional services using the television media, print media and the internet would be discussed in details in the project. Critical discussion of theories Recent research has demonstrated the effects of cultural differences on consumer behaviour. Many studies have emphasized on highlighting the need for examining the validity of application of inferences which were developed in America for the designing and development of marketing strategies in other nations. A number of US based multinational companies like IBM, Coca-Cola; McDonald’s have been successfully earning significant revenue from their international operations across the globe. Thus the development of the different marketing strategies which remain sensitive towards the cultural differences across nations are considered to be of paramount importance for organizations have cross border operations and for their international success (Canli & Maheswaran, 2000, p.309). Previous research has thrown light on the fact that products and services from nations having favourable perceptions have been provided with positive evaluations. However, despite the above fact a survey which was conducted by Bozell-Gallup, (1996), showed that substantial differences in perceptions prevailed among the different nations. For example, according to the perception of Europe, Germany was chosen as the leader of quality. On the other hand for the Asian countries, Japan is considered to be a leader in quality. Despite the existence of substantial literature about nations of origin effects, an examination based on theoretical framework for the understanding of the effects of origin of countries across is still lacking. The collectivism/individualism framework has provided an important way of measuring and comparing the differences in cultures across nations. Collectivists and individualists have shown considerable
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