entering the soft drinks industry in india

3515 Words Oct 16th, 2013 15 Pages
Entering the Soft Drinks Industry in India

Global and International Business Contexts

Word Count: 2896

Contents
Contextual Analysis:
Page: 3: Background to India:
Page 3: Porter’s National Diamond: Factor Conditions
Page 3: Porter’s National Diamond: Demand Conditions
Page 4: Porter’s National Diamond: Firm Strategy, Structure and Rivalry
Page 5: Porter’s National Diamond: Related and Supporting Industries
Page 5: Porter’s National Diamond: Role of Chance
Page 5: Porter’s National Diamond: Role of Government
Page 6: Porter’s Five Forces: Buyer Power
Page 6: Porter’s Five Forces: Supplier Power
Page 6: Porter’s Five Forces: New Entrants
Page 6: Porter’s Five Forces: Substitutes
Page 7: Porter’s Five
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Glocalisation entails local and global activities acting simultaneously, where they would “think globally and act locally” (Glocalisation, no date). By adapting to the local environment, the MNC could gain a competitive advantage as an international brand as they would appear to take in to account the local surroundings of their brand and they are more likely to be successful as they would be selling a product that the local Indians would want. The MNC should internationalise to respond to the megatrend of competitors, which is a deterministic force, and then compete through adaptation of their product to suit the local surroundings in India. The strategy the MNC should consider after analysing the demand conditions is to consider both price and value together. They should differentiate themselves from other soft drink suppliers by offering a strong brand that young Indians are conscious of (Soft Drinks in India, 2011) but also an acceptable price. Although there is a huge poor population in India, if the MNC were to target Southern India as suggested after looking at the factor conditions, research by the Bureau of South and Central Asian Affairs (2011) depict a large and growing middle-class population of India that have a disposable income of between $4,166-$20,833 per year; this suggests that they could price their product in correspondence with the other brands

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