Lincoln Electric expansion to India Name Institution Affiliation Date 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. Through the joint venture strategy in Indian market, Lincoln Electric has a chance of attracting wider market share in the region. The major …show more content…
Huge profits will result from the company expanding its operations to India. The average sale of the company’s products will improve; it will hence be able to produce more products for the India market (Fratianni, 2006). Different tools can be used to analyze the expansion of this company in India. The expansion of the company will have different inferences; the company may get high level of profits or get losses. Profits can use as a good measure of the company’s expansion in a certain region. The success of the company is normally measured by the level of profits that it generates by involving itself in a certain venture. In this case this company is completing whether to enter the India market or not. It is recommendable for the company to enter India market since there is high demand for its products in the country (Hafford-Letchfield, 2010). Though its products received mixed reactions from China and Japan, the company can take encouragement from the fact that the Indian market did not compose of many electrical companies like in the case of china and Japan. The degree of competition in India is low while the demand is high. Applying the law of demand and supply, entry to the Indian market will signify an increase in the profits of the company (Kuada, 2008). The demand for its products would be in the rise in this country. The performance of the welding materials in Asia countries for the country in
Headquartered in Cleveland Ohio, Lincoln electric’s business model consists of distributing welding consumables, equipment’s and solutions. Lincoln initially traded electric motor cars and steadily moved on to welding. Lincoln’s vision, led by founder John C. Lincoln is to provide high quality welding, joining and cutting equipment’s globally.
The decision to expand into the Indian market by investing in production facilities must be supported by the desired market entry strategy, in conjunction with market requirements, expected demand profile and the regional manufacturing footprint (ref Figure 3).
Lincoln Electric Company has a very strong culture based on shared assumptions values and beliefs. This is evidenced by the attitudes of both the company management and employees towards the organization. The unchanged policies, practices and products point towards a very strong corporate culture. High employee performance and productivity over the many years of the company’s existence is also another indicator of a strong culture.
Business environment has changed dramatically in the past decade. Economic power is shifting from developed countries to emerging economies. To sustain business competitive advantage, firms are constantly looking for new opportunities. Countries like China, Brazil, and India have become the primary investment destinations today. However, many firms have failed in their business expansion to emerging market. Business is business; risks always come together with opportunities. The decision of choosing an appreciate entry mode strategy has a crucial role, and will decide fate of the global expansion. In this essay, I start with a simple introduction of emerging markets, and its attractiveness for foreign firms; it followed by the discussion
Tata Motors (TM) and Fiat Auto S.p.A (Fiat) are large auto manufacturers. It is described as the transformation of TM from a commercial vehicle manufacturing company to a leading passenger car company in India, and its forays into global markets. The case details the growth of Fiat, the problems the company faced, and the strategies it adopted to tackle these problems. It discusses the alliance between the two companies, and the benefits and costs from the alliance for each company.
A major factor in the global business strategy of ABC would be the formation of strategic alliances, outsourcing mechanisms and foreign subsidiaries in a different region of the world, India in particular. Emphasis will get accorded to the expansion mechanisms of FMC in India. Since the cost of doing business in India is relatively cheap, this paper observes that the ABC Corporation would have the potential of establishing or investing more in foreign subsidiaries in not only India but the larger Asian region. The mentioned case happens because ABC would face competition from other world leading companies in the auto and IT industry. As such, establishments of strategic alliances would also get warranted. A look at
A couple of countries identify with arrangements prospects. Others have opened up opportunities to deliver in the prospect country. Lincoln Electric has joint meandered in China to give snappy business sector area and a close-by base. This accommodated them lively section and business region to the detriment of complete control. Lincoln Electric has moreover acquired its course into business segments. The association reported seven acquisitions in its 2008 yearly report. (file:///C:/Users/Y400/Downloads/annualreport2008.pdf) (http://ir.lincolnelectric.com/phoenix.zhtml?c=100845&p=irol-reportsannual)
Here in the UK the company is well established .its sales and marketing, consumer behaviour all are in the high growth and the Indian market is suitable for this particular product so we are expanding our company to India .how this expansion and we are making some franchising in Indian market.
Lincoln Electric was founded by John C. Lincoln in 1895 in Cleveland, Ohio and has remained one of the most prominent and successful American manufacturing companies over a century later. Lincoln’s place in the world of welding machines and electrodes was not done by accident or attributed to luck. It was built by vision and design. John was more of the scientist, preferring to focus on being and engineer rather than managing a company. That’s when James, his brother took the reins (along with a typhoid illness that kept him away from the plant). James Lincoln had a vision for the company that reflected his Christian values, though those values were not imposed on his employees. He used his values as a guiding force as to how to encourage and empower the staff at Lincoln Electric to invest one hundred percent of their efforts into creating the strongest, and most stable manufacturing company in the world.
The company culture of Lincoln Electric is one of teamwork, support and innovation. After reading and reviewing the case study done on Lincoln Electric by Arthur Sharplin of McNeese State University, I have come away with a better understanding of how the company has become the role model for management world-wide.
Lincoln Electric’s Tradition of innovative solutions, technological leadership and commitment to customers, employees, and shareholders stems from the vision of its founder, John C. Lincoln and his brother, James F. Lincoln
Now few MNC companies entered into India. The new entrees have taken of 15% of the projects from the existing players. In our industry there is a huge capital investment is required and it is not very easy to enter into the industry. Like L & W Pvt. Ltd
To expand its business across borders, the company can increase its strategic alliance and invests in local developed firms. It would help it to benefits of their knowledge of the market and reach new customers. The company can find strong interest in investing in India for example, which is the largest trading partner of Alibaba’s home
The Lincoln electric company should be applauded and used as a great evaluation point for manufacturing companies looking to improve direct expenditures while enriching their work force. Their company has earned much success over the decades by doing business under the credo that “at all times price on the basis of cost and at all times keep pressure on our cost."
Willis, had a goal of making Lincoln a top global power, so under his leadership Lincoln, immediately, bought Harris Calorific, a manufacturer of oxyfuel cutting equipment with plants in Italy plus the United Kingdom. This was happening at a time, when, Lincoln, had a sharp wake-up call, in the market when ESAB, a top global manufacturer of arc-welding products out of Sweden, had suddenly, bought 2 medium size producers in the United States of America. The ESAB firm, which was also with operations in the Far East and Latin America, obviously had big international goals. This produced fierce, completion for Lincoln, right in their backyard by ESAB that would use its non-U.S. profits to gain huge market share. But since ESAB’s, completion with Lincoln in America was restricted, as ESAB could not purchase, domestic competitors directly due to, antitrust laws. Lincoln Electric decided to take the completion with ESAB to markets in Europe and Latin America. Where the response would have to be quick and