Ups Between India And India

1221 WordsApr 15, 20155 Pages
UPS had a previous attempt at entering into India. During a period of neglect, they allowed DHL to partner with Blue dart. Together, Blue dart and DHL had three times the market share of the next largest competitor. With a renewed global strategy, UPS is now trying to enter India again but faces competition. India has a lack of infrastructure which makes in hard to streamline the distribution and supply chain.There are some issues with delivering packages to India. There are second mover issues, perception of UPS, a highly regulated economy, and service to rural areas. I think UPS needs to invest in India so they create a positive presence in India. This will allow them to gain market share there Mode of entries are ways that UPS can determine their goals, resources and policy in order to channel their entry into India to a sustainable expansion. There are six modes of entry; exporting, turnkey projects, licensing, franchising, joint venture and subsidiary. For a service company; strategic alliance, joint venture, franchising and subsidiary are the most suitable mode of entry. For a business to business segment, UPS should consider a strategic alliance mode of entry. A strategic alliance would allow UPS to partner with a company that already owns a proportion of the business. A strategic alliance would allow UPS to enter into India. The beneficial thing about this mode of entry, is that relationships can be formed between competitors. Strategic alliances are non-
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