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Chapter 9: Global Market Entry Strategies Case 9-2: military force out McDonald’s De-Throne the Colonel in china? China has universe of 1.4 meg people with real growth rate of 9% in 2008 and its real purchasing power parity, or PPP, is $8 trillion. magic spell Japan’s PPP is $4 trillion and the unite States is $12 trillion. It can conclude that China is the second uncouth of the world that has the spectaculargest economy in the world. With its scotch liberalization and sustainable economic growth that go on with communist semipolitical control, people around the world, especially investors, ar watching them and call in that China is a vertical market to enter, ‘China is evidently the biggest op portunity that we ache passing right now’, utter Time Fenton, McDonald’s executive in charge of Asiatic operation. These are reasons why McDonald’s entered the Chinese market in 1990. Its first branch in China is in ‘Shen- Zhen’. Shen-Zhen is in southern China’s Guang Dong province. It is located spousal relationship of Hong Kong. It is a port city, so the economic in Shen-Zhen is considered to be well and McDonald’s sees this opportunity. That is why it chooses to bold here as the first branch.

As McDonald’s aims only entering to big cities, it opens 750 outlets by 2005 in the big cities only, for example Beijing, Shang Hai and Shen Zhen. This is considered as a rapid growth. It, then, plans to open to 1000 branches by Beijing spend Olympics (2008). Beijing summer Olympics is an international multi-sport event that arranges in Beijing. It is estimated to have more than 50000 fo reigners, who are audience and athletics, co! me to China. However, McDonald’s in China is considered as a achieverful business just it does non success that much. McDonald’s should be the first fast-food eatery that people think of when they are hungry and are in other country. However, this idea does not happen to Chinese people. McDonald’s is not...If you want to get a full essay, order it on our website: OrderEssay.net

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