Essay Example on Wendy's Potential Entry Into the Competitive Fast-Food Sector

Introduction

The business sector, just like any other venture, has strong competition that may hinder the growth and expansion of new firms entering into the sector. Some of the firms have developed monopolistic features hence making it rough and hard for other business organizations, especially the new ones. Wendy displays potential entry into the fast-food sector where there are some firms in the United States of America that poses a competitive environment for her firm; therefore, taking the international market is a better option than venturing into the business in the US, which has recorded weak track records. Therefore, this research paper focuses on identifying the most appropriate international country, which is India, that Wendy will have to choose and venture due to stiff competition in the United States of America through the underpinning of advantages and disadvantages of choosing the identified nation.

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Brief Facts about India that Favored its Choice

The economic comparison of the chosen country with the other two potential countries such as South Africa and Colombia gives India an upper hand for its choice. Based on the 2018 statistics carried out for all the countries of interest, India indicated a strong potential of attractive economic growth with a myriad of fast food (restaurants) as the main business gap.

The population of the country was at 1.8 billion from mixed cultural and religious compositions such as Sikhism, Islam, Christians, Buddhism, and Hinduism is the largest religion (Muro 5). With the large population, there is a readily available market for Wendy's company products and human resources that will enhance the promotion of production. The fast-food industry in this nation by 2018 was estimated to be $1.12 billion, with only 2700 outlets serving the large population of 1.8 billion people (Muro 6). It, therefore, indicates a great and potential business opportunity for Wendy's idea.

According to 2018 statistics, the country has a strong economy with even population distribution hence promoting venturing into the industry in any urban center in the country, unlike other countries that will only require an investor to establish a business in major centers. Although Mumbai and New Delhi are the major centers in the country with large populations, other small centers also have a large population, which is potential customers to Wendy's fast food products (Muro 7).

Advantages of Choosing India

A larger population of the country falls under the age of 30 years. Two-thirds of the overall population is youths and great consumers of fast foods as compared with elderly populations. It, therefore, provides an adequate market for Wendy's fast food products, which in turn enables her to realize profits from the business venture (Muro 6).

Low competition in the Indian market. By 2018, none of Wendy's competitors in the fast-food industry had monopolized the market in India, unlike in other countries. MacDonald, for instance, had a mere 300 outlets across the country and the leading venture in the sector, followed by King Burger (Muro 6).

It has a promising economic growth. The economic strength of the country by 2018 was on the rise due to the rising middle-class citizens and the increased number of people entering the workforce of about 250 million (Muro 7). With this attribute, it gives the country an upper hand to promote and provide an effective business environment to the food industry where Wendy's company falls.

Disadvantage of India

One major disadvantage is on the perception and business culture adopted by most of the American firms on foreign nations. The use of combos with low prices reduces the profit margin of the firm and potential losses; an example is MacDonald's price for pizza was $1.00 in 2018 in India (Muro 7).

Challenges Related to Supply Chain Management

Risk management that may occur due to a constant shift in the market demands from the customers affects Wendy's firm operation. Since Wendy's firm is new in the market, unlike MacDonald and other already established companies, the impact experienced by the company will tend to be intense due to losses (Halder et al., 10).

Quality customer services will be a challenge for Wendy's fast-food company because there will be some difficulties in terms of deciding the quantities of products for what amount of money (Halder et al., 14). Although there are precedent American fast food companies in India, Wendy's company will fill a bit of this technical hitch.

Costing is another aspect that will affect the operations of Wendy's company. It is because the initial cost capital of putting up the whole firm will require some money for labor, raw materials, and business premises, which may eat into the production costs.

Challenges Related with Marketing

Communication breakdown is one of the marketing challenges Wendy is going to in the Indian market. It is because of the language barrier as she speaks English, which is contrary to the largely Hindu language spoken by the majority of the Indians. The English language is, however, used in the country but to a lower percentage (Kulkarni 1). Therefore, this will be a great marketing hindrance in reaching out to most of the target populations.

Some of the strategies of localizing products, pricing, distribution, and promotion of Wendy's products is mainly through the use of the local people source of manpower as they interact easily with other local communities and hence marketing the company's products and hence increasing the sale volume and subsequent profit margins of the firm.

Works Cited

Halder, Piali, and Simayan Pati. "A need for a paradigm shift to improve supply chain management of fruits & vegetables in India." Asian Journal of Agriculture and Rural Development 1.393-2016-23908 (2011): 1-20.

Kulkarni, Smita, and Wilfried Lassar. "McDonald's ongoing marketing challenge: social perception in India." Online Journal of International Case Analysis 1.2 (2009): 1.

Muro, Fabrizio D. "Wendy's: a Plan for International Expansion." vol. 23, no. 1, 2018, pp. 1-13.