7/27/2019 How mutlinationals can win in India
1/17
INTERNATIONAL BUSINESS
PRESENTATION ON
HOW MULTINATIONALS CAN
WIN IN INDIA
Submitted To
Prof. Payal Srivastav Nosheen
Huddar, Sai
INSTITUTE OF PROFESSIONAL EDUCATIONRESEARCH
7/27/2019 How mutlinationals can win in India
2/17
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
7/27/2019 How mutlinationals can win in India
3/17
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.
7/27/2019 How mutlinationals can win in India
4/17
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
7/27/2019 How mutlinationals can win in India
5/17
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
7/27/2019 How mutlinationals can win in India
6/17
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.
7/27/2019 How mutlinationals can win in India
7/17
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..
7/27/2019 How mutlinationals can win in India
8/17
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..
7/27/2019 How mutlinationals can win in India
9/17
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..
7/27/2019 How mutlinationals can win in India
10/17
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..
7/27/2019 How mutlinationals can win in India
11/17
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.
7/27/2019 How mutlinationals can win in India
12/17
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.
7/27/2019 How mutlinationals can win in India
13/17
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.
7/27/2019 How mutlinationals can win in India
14/17
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..
7/27/2019 How mutlinationals can win in India
15/17
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
7/27/2019 How mutlinationals can win in India
16/17
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.
7/27/2019 How mutlinationals can win in India
17/17
THANK YOU
Top Related