The company should consider expanding in the Asian market specifically India which is a market with great growth potential. It should first introduce Taco Bell in India but it is important to first evaluate the environmental, legal and economic factors. The economic condition of a nation is very important because it determines the purchasing power of individuals. Therefore it is very important to monitor economic indicators such as interest rate and credit availability. Based on these aspects, it is accurate to say that India is a growing market with a stable and thriving economy that is attracting foreign direct investments. Environmental factors such as ecological concerns, weather and climate must also be taken into account. A nation with favorable climate and moderate market is always preferred by investors. India is a region of all seasons and it presents a great opportunity without major climatic challenges. Legal considerations such as employment laws, health and safety conditions must also be evaluated. The food and beverage laws and acts in India are very friendly thus the region is ideal for the company’s expansion.
Why India?
Firstly, the market size of India is very huge because it is a densely populated country thus the demand is also high. Secondly, there is a great availability of factors of production thus the company will save on costs of production associated with machinery, materials and methods. The nation is also politically stable thus there a limited chance of often changing policies governing the business sector (Law, 2019). However, it is important to note that key food giants are also present in India which raises competition and the company has to ensure it is at the top when it comes to quality, taste and health values.
Entry mode
The company should adopt licensing and franchising. The company needs great quality and instant delivery of products with nutritious value. As a result, it should open-up licensing for production of food products in the host nation and open franchising for the distribution market (Ehsan Ullah, 2016). Licensing and franchising do not need huge investment and the organization will be able to easily expand its operations in the host nation because the local player is engaged and is greatly aware of the laws, rules and regulations of the host nation.
References
Ehsan Ullah, E., Karlsson, B., & Dada Olanrewaju, D. (2016). Foreign Market Entry Srategies.: A Case study of IKEA entering Indian Market.
Law, C., Green, R., Suneetha Kadiyala, B. S., Knai, C., Brown, K. A., Dangour, A. D., & Cornelsen, L. (2019). Purchase trends of processed foods and beverages in urban India. Global Food Security, 23, 191.
Wirtz, J., & Lovelock, C. (2018). Developing Service Products and Brands. WS Professional.
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