Lincoln Expansion to India

2318 Words Jan 12th, 2015 10 Pages
Lincoln Electric expansion to India

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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
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The issues regarding the political situation in India are attractive to the investors. There is no major threat regarding the Lincoln Electric company investing in the region.
The Lincoln Electric company has to take advantages of the political situation in India. The Indian government offers full support in the provision of security and ensuring investments are safeguarded. On international investors, the government acknowledges their participation in the provision of employment in the region (Theobald, 2008). Therefore, they take high initiative in protecting the companies through different acts regarding business and industries. The political will in Indian government in upholding the foreign companies ensures development throughout. Therefore, political stability of the country has a major effect on the business setting and its operation.
Economics background
India has a promising economic situation whereby investors consider it as a strong initiative leading to prosperity. Lincoln Electric Company has to consider long term condition regarding the market and economy of the region. The basis of market and competition helps in introducing appropriate measures regarding the future of the Lincoln Electric company. The management has chosen appropriately the markets that have a promising future and having the market structure that have the capability of improvement (Majumdar & Saad, 2005).
The competitions in the