Risk Analysis, SWOT Evaluation, and Business
Strategy Recommendation for Market Entry into
India
Introduction
In today’s changing and highly competitive global business world,
organizations must assess and align their strategies according to their
capabilities and external factors. As organizations are looking for expansion
opportunities beyond their local markets, emerging countries are also
providing many opportunities for business expansion due to their growing
industries and untapped markets, along with supportive government
policies. However, these opportunities are also accompanied by many
uncertain factors, which must be considered for the sustainable success of
an organization.
In this regard, an organization based in the U.S., which specializes in the
design and manufacturing of fishing boats and has a high commitment
towards innovation, lean manufacturing, and customer focus, plans to enter
the Indian market, which has a massive industry for fishing boats and plays
an important role in providing employment opportunities for its citizens and
boosting its exports. This paper will focus on the uncertainties in the Indian
market, conduct a SWOT analysis of the organization, and then provide the
, most appropriate strategies for the organization based on the SWOT
analysis.
A. Risks of Entering the Emerging Market
Regulatory and compliance risk is one of the major external risks that the
company faces when it decides to venture into the Indian market. Although
the Indian government encourages the use of sustainable and
nonmechanized fishing techniques, the regulatory authorities, such as the
National Fisheries Development Board (NFDB), have their own
requirements that need to be met before the product can be endorsed. In
this case, the NFDB requires that foldable fishing boats be made from
plastic materials sourced in India to reduce landfill waste. This requires the
company to change its existing production process, which has already been
perfected in the USA. The impact of this risk includes the cost of research
and development.
If the company does not comply with the regulations or sustainability
requirements, it may lead to a loss of endorsement from NFDB, thereby
affecting the level of adoption of the product by Indian fishermen (National
Fisheries Development Board [NFDB], n.d.).
The second risk is the operational risk. The company needs to make a
significant investment to set up its manufacturing operations in India. The
company may have to either build a new facility or partner with an existing
Strategy Recommendation for Market Entry into
India
Introduction
In today’s changing and highly competitive global business world,
organizations must assess and align their strategies according to their
capabilities and external factors. As organizations are looking for expansion
opportunities beyond their local markets, emerging countries are also
providing many opportunities for business expansion due to their growing
industries and untapped markets, along with supportive government
policies. However, these opportunities are also accompanied by many
uncertain factors, which must be considered for the sustainable success of
an organization.
In this regard, an organization based in the U.S., which specializes in the
design and manufacturing of fishing boats and has a high commitment
towards innovation, lean manufacturing, and customer focus, plans to enter
the Indian market, which has a massive industry for fishing boats and plays
an important role in providing employment opportunities for its citizens and
boosting its exports. This paper will focus on the uncertainties in the Indian
market, conduct a SWOT analysis of the organization, and then provide the
, most appropriate strategies for the organization based on the SWOT
analysis.
A. Risks of Entering the Emerging Market
Regulatory and compliance risk is one of the major external risks that the
company faces when it decides to venture into the Indian market. Although
the Indian government encourages the use of sustainable and
nonmechanized fishing techniques, the regulatory authorities, such as the
National Fisheries Development Board (NFDB), have their own
requirements that need to be met before the product can be endorsed. In
this case, the NFDB requires that foldable fishing boats be made from
plastic materials sourced in India to reduce landfill waste. This requires the
company to change its existing production process, which has already been
perfected in the USA. The impact of this risk includes the cost of research
and development.
If the company does not comply with the regulations or sustainability
requirements, it may lead to a loss of endorsement from NFDB, thereby
affecting the level of adoption of the product by Indian fishermen (National
Fisheries Development Board [NFDB], n.d.).
The second risk is the operational risk. The company needs to make a
significant investment to set up its manufacturing operations in India. The
company may have to either build a new facility or partner with an existing
