How mutlinationals can win in India

7/27/2019 How mutlinationals can win in India

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INTERNATIONAL BUSINESS

PRESENTATION ON

HOW MULTINATIONALS CAN

WIN IN INDIA

Submitted To

Prof. Payal Srivastav Nosheen

Huddar, Sai

INSTITUTE OF PROFESSIONAL EDUCATIONRESEARCH


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HOW MULTINATIONALS CAN WIN IN IND

Companies should avoid simply imposing global business models and pra

market.

Over the past 20 years, multinational companies have made considerable inro

market.

For multinationals, the key to reaching the next level will be learning to do

way, rather than simply imposing global business models and practices on the

A leading beverage company entered India with a typical global bus

ownership of distribution, an approach that raised costs and dampened marke


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HOW MULTINATIONALS CAN WIN IN IND

To realize Indias potential, multinationals must show a strong and visible

country, empower their local operations, and invest in local talent.

They must pay closer attention to the needs of Indian consumers by offering

the local market requires.

Proper strategy should be made before entering the Indian market. In other w

many multinationals depends on their ability to succeed in India.


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KEY ASPECT

1. Ensure top leadership support and commitment through cycles

2. Customize offerings to suit Indian market and customer needs

3. Create innovative and localized business model

4. Scale up via deals and partnerships

5. Leverage India for global products, services, and talent

6. Manage perceptions and regulation

7. Empower local organization; offer a compelling people proposition


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EMPOWERING THE INDIAN ORGANIZAT

Many multinationals in India are stuck in a profitability trap characteri

commitment to build country-specific operations and management systems.

One important differentiator is the ability to demonstrate a commitment to

economys inevitable cycles and volatility.

Policy makers and local entrepreneurs doesnt follow through on its commitm


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CONTINUED..

One global electronics manufacturer offers a successful example of the bene

commitment in India.

The company launched an aggressive marketing campaign, but rather than r

in India to pay for the effort, global headquarters financed it.

Headquarters also helped the Indian subsidiary to source inexpensive compo

take command of its own operations.


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Multinational power and automation technology company learned the hard

when senior executives lack commitment to India.

In the late 1990s, the parent company paid marginal attention to local operat

unwilling to adapt to changing market conditions.

Finally, in early 2000, headquarters gave the Indian operations a high level o

response revenues rose by 30 percent (compounded annually) between 2001 a

CONTINUED..


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Empowering local management is also critical for attracting and retaining tale

Many multinationals are moving toward the creation of a strong Indian busin

process, moving away from functions or global products as the primary axis o

This direct connection to global managementcombined with the ability to

capital spending, products, and pricingholds a local leader more account

the sharper development and execution of strategy.

CONTINUED..


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Local empowerment should extend beyond the country head to lower leve

which can help drive innovation and entrepreneurialism on the ground and

market for new products.

Multinationals need the right peopleespecially in middle management, a g

successful execution of a growth strategy.

With the continuing professionalization of Indian companies, the countrys

have less incentive to work for a branch of the multinationals, which must

term tactical measures to attract high-quality people.

CONTINUED..


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The most progressive global companies are moving in three directions.

They create more globally visible local roles, which may include represent

committees.

These companies promote a meritocratic culture.

Progressive global companies offer mobility and tailored leadership programs

CONTINUED..


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INNOVATING FOR INDIA

India is different from foreign countries, and in India also different kind of p

(Major different in Language, Culture, Geography urban & rural.)

Work in India is just not like to come with a new customize product and s

have to change there business model also.


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CONTINUED..

Pries low, MNCs introduce sub product , of their main, with feature that sui

help of local player so that cost can reduce.

Example: earlier T.V face many problems in Rural Indian, but when compa

which is related with language then company offer T.V. with local languag

sound.


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CHOOSING THE RIGHT ENTRY STRATE

One of the first and most important issue for a multinational considering doin

is ownership structure.

Multinationals that enter the country on a stand-alone basis generally fare be

use Indian partners to create joint ventures.

One global consumer goods company, for example, bought out its Indian differences over product marketing and brand positioning. The multinationa

in all the segments where it competes.


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Multinationals that choose joint ventures as their entry vehicle into India

partner can better navigate the markets complexities and manage regulatory i

Joint ventures often tend to emphasize short-term performance over long-ter

commitment, and an alignment between the interests of the global and local p

Partnerships with Indian companies need not be limited to joint venture

should also consider strategic alliances with local players

CONTINUED..


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A global pharmaceutical company established itself as a stand-alone en

strategic alliances with a local manufacturer in licensing and supplies for th

patent segments.

These agreements helped the multinational to enter Indias fast growing m

easily accessible branded generics and off-patent medicines.

EXAMPLE


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CONCLUSION

The multinationals need top leaders willing to make a commitment to the In

to localize and empower it.

They must adapt to the Indian consumers demand for innovative, low-co

and high value for money products, as well as identify and implement an app

model.

The best efforts to localize an Indian business model will come to naught

groups are overlooked.


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THANK YOU

How mutlinationals can win in India

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