GLOBALIZATION

GLOBALIZATION
OF
OF INDIAN
INDIAN
BUSINESS
BUSINESS
Mubeena.k
 CONTENTS
• Globalization
• Globalization of Indian business
• Favouring factors
• Obstacles
• Globalization strategies
 INDIAN ECONOMY
Before 1991- licenced era
After 1991 – dramatic change
reduce - industrial license
remove - restrictions on investment
welcome - foreign technology, FDI….
 GLOBALIZATION
World bank
“a) Gradual abolishment of import control
over all items including consumption
good;
b) reducing the import duty;&
c) privatizing PSEs
• To developing countries;
Integrating the economy with
the world economy ie, removal of all
trade barriers. It refers to the
process of integration of the world
into one huge market.
At the company level;
Globalization means two things:
1. The company commits itself with several
manufacturing locations itself with the
world and offers products in several
diversified industries and;
2. It also means the ability to compete in
domestic markets with foreign
competitors.
 FACTORS FACILITATING GLOBALISTION
IN INDIA
1. Human resources.
2. Wide base
3. Growing entrepreneurship
4. Growing domestic market
5. Expanding markets
6. Transnationalisation of world economy
7. NRI’s
8. Economic liberalization
9. Competition
10. Niche markets
OBSTACLES TO GLOBALISTION IN INDIA
1. Govt policy &procedures
2. High cost
3. Poor infrastructure
4. Obsolescence
5. Resistance to change
6. Poor quality image
7. Small size
8. Lack of experience
9. Growing competition
10. Limited R&D and ,marketing research
11. Trade barriers
12. Supply problems
13. Poor infrastructure
GLOBALIZATION STRATEGIES
1. Exporting
2. Foreign investment
3. Mergers &Acquisitions
4. Joint Venture
5. Strategic Alliance
6. Licensing& franchising
SCOPE OF MARKETING INDIAN
PRODUCTS ABROAD
1. Product extension
2. Product development
3. Product modification
4. Copying
5. Vacated market segments
6. Seeking foreign markets for existing products
7. From supplier to marketer of branded products
8. Exploiting further potential
9. Private labels/contract manufacturing
 CONCLUSION
If the Indian firms have the facility to
obtain the latest technology in the
world,to raise finance from the cheapest
source and procure the materials from the
best source in the world, they are on equal
footing with the foreign firms in many
respects…