Fairchild Water Technologies

1516 WordsMay 5, 20157 Pages
Case Study Student: 00599-3878 By the year 2000, Fairchild Water Technologies, Inc. (Fairchild) was a mature company experienced in the realm of water technologies and offering a diverse product line consisting of desalinators, particle filters, ozonators, ion exchange resins and water purifiers. Even though their prices were higher than those of many competitors, industry experts generally regarded the product line as superior in terms of performance and quality. Fairchild had experienced some early success upon entering the markets of developing countries and was now poised to become a leading competitor in these foreign markets. Based on the information presented in the case study, I believe that Fairchild should aggressively enter…show more content…
The average ROA for an Indian corporation was 18%, compared to 11% for U.S. corporations. 7. India offered favorable business conditions, especially with extremely low wage rates; cost of skilled labor was around Rs 20 to 25 per hour vs. $20-25/ hour in the U.S. India also provided a central location to wealthier South Asian countries. 8. It would be very feasible for Fairchild to find an Indian partner for a joint venture since many companies marketed high quality household appliances, had established dealer networks (min 10,000 +), already had international partners, utilized door-to-door sales force, had good managerial talent and were all profitable and looking to grow. 9. The rural and small urban markets were essentially untapped. Competitors had only focused their sales efforts on large urban areas reaching only 10-15% of the entire Indian population. The sales potential for Fairchild was wide open in this market. The above factors would provide Fairchild a tremendous advantage upon entering the Indian market under a joint venture. The recommendation would be for Fairchild to proceed in the following manner. 1. The field test as described in the case study should be carried out as planned. The testing period would give Fairchild time to identify a suitable joint venture partner The results of the field testing would be useful in convincing consumers and retailers to buy the product. 2. Commence with advertising and promotion to communicate
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