Lincoln Electric Expansion To India 2

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 two most important issues that Lincoln Electric is faced with are as follows. First, the inability to meet customer demand because of the shortages in supply creates opportunities for competing firms to enter the industry. What resources and capabilities does Lincoln Electric have that can mitigate this threat of entry. Second, the emphasis put on the monetary incentive plan leaves the company vulnerable in economic hardships. How can Lincoln Electric continue to encourage competition and quality without a high emphasis on monetary incentives?

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).

Foreign firms deciding to entrer a host country face numerous options of entry modes, which include equity joint ventures, wholly foreign owned enterprises, acquiring existing firms, franchising and licensing, contractual joint ventures, representative offices, build-operate-transfer and so forth. However, the most important process a foreign company should do before deciding an entry modes is to make sure it know the targeted market very well by considering the production factor, the market factor, and environment factor in host country.

In 1906 John C. Lincoln incorporated his business East Cleveland, Ohio forming what we know today as the Lincoln Electric Company. Though the company started out as a relatively small operation, it is now one of the largest producers of welding Machines and electrodes. Branching out from Cleveland, Ohio the company now has more factories in U.S. as well as in other countries. The company’s success has be attributes to several different factors, one of which is the company’s unique culture.

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.

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

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.

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

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

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."

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)

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.

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.

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