MacDonald’s

Failure in Bolivia
Marine de Calbiac – Pink Team – Master Marketing PGE 2019-2020
 Presence of MacDonald’s
There are a few countries where MacDonald's is not present (in blue). Particularly a
large part of Africa but I decided to talk about Bolivia..
 198 198 199
5 6 7

MacDonald’s in Bolivia
Economy Economy Strategy
Bolivia suffers a Hyperinflation. First MacDonald’s in
severe economic Bolivia.
crisis.
199 200
9 2
Strategy Strategy
Oppening of 6 Close of 8
restaurants. restaurants.
19 The first MacDonald's opened in Bolivia after the country faced

MacDonald’s in Bolivia
97 an economic crisis. The opening of the restaurant was perceived
as a social event where to go with family or friends, the
population was willing to pay to eat there.

19 After this success, Macdonald's opens 6 restaurants and they

99 adapt their offer to the Bolivian culture. For example,

MacDonald's has offered empenadas and cornbread or ilajua,
which are typical dishes in Bolivia.

200 Then they realize that there are no security standards.

2 In 2002, all the restaurants of the MacDonald's chain closed.

 did
Economy
Bolivia is one of the poorest countries in
South America.
they
fail?
In 1997, 68% of bolivians lived in condition

Why they did fail ?

of poverty and 38% lived in extreme poverty
condition.
And in 2002, 65% of bolivians lived in
condition of poverty and 40% lived in
extreme poverty condition. The number of
people living in extreme poverty has
increased.
Were underperforming.
In addition, monthly income in Bolivia is
around $ 83, so MacDonald's offer was too Culture
expensive for the country. While in the
country, for a similar offer of quick meal, it Finally, Bolivians are very
can be found for 2 or 3 dollars. So the price proud of their food and their
is too expensive for the expectations of traditions. They prefer not to
Bolivians. be "Americanize".
There is suddenly a big competition since
there are 60,000 street vendors in Bolivia.
Sources

● https://www.lapresse.ca/international/ailleurs-sur-le-web/201108/15/0
1-4426089-une-carte-des-pays-sans-mcdonalds.php

Sources
● https://www.cnbc.com/2019/01/02/mcdonalds-bolivia-evo-morales-fas
t-food-latin-america.html
● https://www.francetvinfo.fr/monde/ameriques/l-echec-de-mcdo-en-bol
ivie_3073177.html