Getting China and India Right: Strategies for Leveraging the World's Fastest Growing Economies for Global Advantage
Anil K. Gupta, Haiyan Wang
Format: PDF / Kindle (mobi) / ePub
This book is the first strategic guide for multi-national corporations (MNCs)who are contemplating expanding into both China and India. Gupta and Wang explain how many MNCs view China and India solely from the lens of off-shoring and cost-reduction, and focusing their marketing strategies on only the top 5-10% of the population. This is a missed opportunity. China and India are the only two countries that constitute four realities that are strategically crucial for the global enterprise:
- Both provide mega-markets for almost every product and service
- Both have platforms that will dramatically reduce the company's global cost structure
- Both have platforms that will significantly boost the company's global technology and innovation base
- Both are springboards for the mergence of new fearsome global competitors.
This book aims to shed light on the brutal competition for markets and resources in China and India as well as lays out the strategic action implications for those companies who want to emerge as the global players of tomorrow.
share in China was 85 percent. Yet by the end of 2006, eBay’s dreams in China appeared to be on the verge of collapse. The company’s nemesis was TaoBao, an auction site launched by China’s Alibaba Group in May 2003. By early 2006, TaoBao had emerged as the leading customer-to-customer and business-to-customer auction site in China. In December 2006, eBay decided to pull back from China, shut down its local Web site, and become a 49 percent owner in a new operation, TOM EachNet, run by TOM Online,
Areva and Portugal’s Martifer, to gain control over 87.1 percent of voting rights. In exchange for ceding voting rights over its 30 percent stake to Suzlon, Areva obtained the right to sell its stake to Suzlon at market price after one year; Suzlon also agreed to use Areva as its preferred supplier for transmission and distribution infrastructure. Similarly, Martifer ceded voting rights (Continued) c05.indd 159 12/17/08 3:05:30 PM 160 GETTING CHINA AND INDIA RIGHT over its 23 percent stake
in? We discuss four complementary strategic moves: (1) neutralize the dragons’ and tigers’ home court advantage, (2) join forces with the dragons and tigers, (3) leverage the c05.indd 163 12/17/08 3:05:31 PM 164 GETTING CHINA AND INDIA RIGHT power of China+India, and (4) protect your competitive position in markets outside China and India. Neutralize the Dragons’ and Tigers’ Home Court Advantage The starting point for battling the dragons and tigers on the world stage is to figure out how
materials companies in the world. In 1987, South African Breweries was a domestic beer company confined to its homeland due to the antiapartheid sanctions imposed by the rest of the world. Today it is one of the world’s three largest beer companies. Look ahead now, and factor in the sheer size and growth rates of China and India, the globalization of capital markets, and the rapid diffusion of technology. There can be little doubt that, over the next ten years, the magnitude and pace of change in
an increasing number of IBM’s current and future clients would be looking to Indian companies to help reduce their cost structures. IBM started ramping up its India-based operations in full seriousness around 2004. During that year, it signed a $750 million outsourcing contract with Bharti Tele-Ventures (now called Bharti Airtel), India’s leading mobile operator. It also acquired Daksh eServices, an Indian company providing business process outsourcing services. This became the start of seeing