Bharat Forge: A Comparison

In addition, the internationalisation is the strategy to occupy the foreign market step by step. Also, the porter’s competitive advantages theory is to analysis the strategies of global business. They could divide to three strategies: over cost leading, diversity, and market focus strategy (Passemard& Calantone, 2000). The cost leading strategy focus on establish efficient scale production facility and minimize the research and advertising cost. The diversity strategy focus on introduce some unique product in whole industry. But, this strategy will with a high cost price. The focus strategy is attack of a particular customer group or specialist regional market, its purpose to design the service for a particular target. Consequently, the companies need to consider the internal and external factor condition, such as: factor condition, demand condition, related and supporting industries condition, and firm strategy and rivalry. They are called diamond system. This dynamic system gives the company a standard to measure theirs advantage and disadvantage before they enter foreign market. Moreover, the specific advantage in Internationalisation of Production is give companies a new choose for exhausted market (Strange,S. 1992). In an international environment, the companies will face more uncertain and unequal condition than home market, therefore the companies need keep the attention of more factors:

SC also has modern equipment which is an asset that could strengthen the asset base of BF and could be used in the continued production of SC without replenishing the asset in the foreseeable future and/or tries to adopt the production of SC to BF product line systems and standards. Thus the operational strategic competitive position of BF could be enhanced. That could also improve agility or obtain resources that are vital to future prosperity of the SC in particular and BF in general.

Compare to our major competitors like ADI (leading supplier in industry), we are still very young. In such an industry that many similar companies offering similar products and use comparable tech, unique geographical advantage no longer matter in competition. What’s left for us is to execute the business with maximum efficiency and effectiveness and to make the smartest decisions possible.

One example is China and India which are countries that had an explosive, rapid, and dramatic economic growth that continues to establish industrialized expansion. With such economic growth and with intense development to establish an industrialized society is needed with materials that has something to do with metal ores, aluminum, manganese and others. The opportunity is global with the existence of free trade in some parts of the regions, their products are easily sells. The immergence of international trade union and other international trade organizations can able to support leverage the products. Meanwhile, since the company promoted multi-cultural or diversified culture in terms of its manpower, it has an opportunity to acquire the best, competitive and skillful persons to further help run the company.

The Swiss – based elevator manufacturing company, Schindler, is considering an business expansion plan. After thorough evaluations of growth potential and competition environment, India became the centre of attention for the executives to implement the company’s business plan. Considering the enormous growth potential of the Indian standardized elevator market, Schindler was imperatively in need of finding a source of distribution, after the company renounced its cooperation with one of India’s most successful elevator supplier, Bharat Bijlee Ltd (BBL). Possible market entry strategies included joint venture, direct export and local manufacturing subsidiaries. After consultation and careful consideration, the company concluded that opening

1. Should Lincoln Electric (LE) expand into the Indian market by investing in a major production facility there?

Market entry strategy involves the essential requirement for a company to get into international level. The need of involving other companies whereby two companies join together is referred to as joint venture entry. They get into a similar market and make the same production with the aim of sharing risk and at the same time they share the profit according to their terms of agreement (Kretzberg, 2007). Therefore, Lincoln Electric Company has a chance to join with other company to venture in the Indian market.

On perusal of the case study it is observed that the Australian company is a well established company having presence in the entire country with sustained demand for its products. The company acquired one privately owned company in China in the year 2008 producing steel screws and nails with the objective

The Republic of Poland is a country whose vast and turbulent history created the country that exists today. Located in the center of Europe and surrounded by superpower countries such as Germany and Russia, Poland has experienced unimaginable tragedy but they have also reveled in their successes. Poland has managed to bounce back from a dark time in world history to become a thriving and stable country. The Lewis Globalworks Company has to keep several factors in mind when considering opening a production facility in an international location such as Poland. The company should take into account the country’s history, economic stability and growth as well as current events happening in Poland before they make a final decision to open a new production facility in Poland.

International industry analysis is a very broad concept to look at; to do a detailed analysis of this internationalisation is the key concept of this report. The portfolio is prepared to do analysis of how, global retail market and civil aero engine spreading their business outside the borders of their origin.

Over the last decades, many companies have offshored manufacturing activities to Asia Pacific and Eastern Europe. Since

As for Sime Darby Energy & Utilities Division (E&U), which separated into China and non-China operations, its non-China uses cost-focus strategy as they exited the power industry by disposing its Malaysia-Thailand owned Power Company to be in-line with their company long-term business strategy that focuses on its core business due to its net loss of RM 49.3 million in FY2014. This division has shrink its operations in Malaysia, Singapore & Thailand to cut cost but still continue with its current operation of providing mechanical & electrical products and services. In the E&U Division of China operation, it focuses in water management and ports & logistic. Due to its limited ports and water ground, it has a low market growth, which placed it in cash cow quadrant. Although E&U is profitable in managing the ports and water management, the growth potential is too slow for further investment.

In this competitive world it is very difficult to stand in a high position in the global market. Bharat Forge and Suzlon are the two Indian Companies which entered the global market. Bharat Forge initially started as a basic manufacturer for domestic consumption and now it is the second largest forgings. Whereas Suzlon initially was just a small textile manufacturer after a period of time it lead to an edge producer of wind turbines and now it’s the fifth ranked wind turbine manufacturer in the world. The main objective of Bharat Forge is to surpass ThyssenKrupp of Germany and become number one. In order to reach the top spot in global market, both the companies deployed various strategies.

The demand from Mumbai had been very encouraging and within a year the market share in Mumbai was 53%. Due to this, company increased its production to more than 60 cities in 1 months only. But the company later realized that the boom in the demand in the Mumbai market was nothing but the supply to other parts of the country.

Each nation operates and establishes four main attributes which constitute the diamond of national advantage; these attributes are factor conditions, demand condition, related and supporting industries and firm strategy, structure, and rivalry. When identifying these attributes, it may helps companies to learn how to compete; and each point of the whole system can affect directly for achieving international competitive advantage in the company. We can cite the pressures to invest and innovate, the goals of the managers and owners, the information available that shapes the opportunities, the direction in which they deploy their skills and the availability of skills and resources. First factor conditions according to an economic view that the factors of production are labor, natural resources, land… all these determine the flow of trade. But in the sophisticated companies it creates the most important factor of production such as skilled human resources and performance. Considering and involving heavy and specialized investment which constitutes an advantage in knowledge intensive industries. Sometimes nations succeed