A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business

need while remaining independent organizations. Market Opportunities Best prospect sectors and business opportunities. Ranked on the basis of estimated Indian imports from the U.S. for 2007, the best prospects (in alphabetical order) for U.S. exports follow Airport and Ground Handling Computers and Peripherals Education Services Electric Power Generation, Distribution and Transmission Equipment Food Processing & Cold Storage Equipment Franchising and Retailing Medical Equipment Mining and Mineral Processing Equipment Oil and Gas Field Machinery Pollution Control Equipment Telecommunications Equipment Textile Machinery Water Selling U.S. Products and Services Only five industries are subject to compulsory licensing in India. The need for licensing is attributed to safety, environmental, and defense related considerations. The licensing authority in this case is the Ministry of Industrial Development and the industries are :distillation and brewing of alcoholic drinks; cigars and cigarettes of tobacco and manufactured tobacco substitutes; electronic aerospace and defense equipment of all types ;industrial explosives including detonating and safety fuses, gun powder, nitrocellulose and matches and hazardous chemicals. Selling to the Government Indian government procurement practices and procedures often lack transparency and standardization, which can frustrate foreign suppliers .Remember the scale of India and consider a Regional approach .Creating a local presence in India is strongly advised, but if your company isnt ready to establish a branch office or a subsidiary, you can get this on-the-ground presence by appointing an agent, representative, or distributor. Its important to remember that India is a huge and diverse country, with over 30local languages. Regional Approach to combat Indian diversity: Companies prefer to appoint master licensees on a zonal basis, as India is a large geographical landmass with adiverse mix of population Challenges: a)Legal & Business Advise: b) Resistance on Fees & Cap on Royalty: c) Lack of Legal Framework: d)Local Culture and Tastes: Understanding local culture and tastes and innovative strategies like Indianization of products is vital to a franchise success. Direct Selling 1

Direct selling is one of the fastest growing industries in India. According to industry reports, the direct selling industry in India is expected to report a total turnover of $807 million for fiscal year 2007 & 08 and touch $ 2.5 billion by 2012 Marketing Mix of Global Marketing Marketing planning helps you decide what products or services are required in your market, then how to sell them and what price to put on them. So focus on the sevens of marketing people, planning, product, positioning, pricing, place and promotion . The personal, cultural, social and psychological attitudes of your customers are important. If you are going to meet their needs; do some basic market research A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. Market Opportunities Best prospect sectors and business opportunities. Ranked on the basis of estimated Indian imports from the U.S. for 2007, the best prospects (in alphabetical order) for U.S. exports follow: Airport and Ground Handling Computers and Peripherals Education Services Electric Power Generation, Distribution and Transmission Equipment Food Processing & Cold Storage Equipment Franchising and Retailing Medical Equipment Mining and Mineral Processing Equipment Oil and Gas Field Machinery Pollution Control Equipment Telecommunications Equipment Textile Machinery Water Selling U.S. Products and Services Only five industries are subject to compulsory licensing in India. The need for licensing is attributed to safety, environmental, and defense related considerations. The licensing authority in this case is the Ministry of Industrial Development and the industries are: distillation and brewing of alcoholic drinks; cigars and cigarettes of tobacco and manufactured tobacco substitutes; electronic aerospace and defense equipment of all types; industrial explosives 2

including detonating and safety fuses, gun powder, nitrocellulose and matches and hazardous chemicals. Selling to the Government Indian government procurement practices and procedures often lack transparency and standardization, which can frustrate foreign suppliers. Remember the scale of India and consider a Regional approach. Creating a local presence in India is strongly advised, but if your company isn't ready to establish a branch office or a subsidiary, you can get this on-the-ground presence by appointing an agent, representative, or distributor. It's important to remember that India is a huge and diverse country, with over 30 local languages. Regional Approach to combat Indian diversity: Companies prefer to appoint master licensees on a zonal basis, as India is a large geographical landmass with a diverse mix of population Challenges: a)Legal & Business Advise: b) Resistance on Fees & Cap on Royalty: c) Lack of Legal Framework: d)Local Culture and Tastes: Understanding local culture and tastes and innovative strategies like "Indianization" of products is vital to a franchise success. Direct Selling Direct selling is one of the fastest growing industries in India. According to industry reports, the direct selling industry in India is expected to report a total turnover of $807 million for fiscal year 2007 - 08 and touch $ 2.5 billion by 2012. Trade Promotion and Advertising Over the years, the Indian economy has moved from being a controlled, sellers' market to a buyers' market. In the former, whatever was produced was sold easily, and advertising was hardly necessary. The government began dismantling production controls in the mid 1980's, and opened up the economy in 1991. With these developments came increased competition, and increased advertising. According to a December 6, 2006 report in Business Standard, advertising is a $3.4 billion industry in India today. The major strategic successes involving information technology in the last two decades have involved a redesign of inter-organizational relations. New product and service offerings, channel systems capabilities, and target marketing initiatives are enabled through these partnerships, alliances, and information interchange arrangements.

New organizational and market relationships are made possible through systems that cross organizational boundaries. In todays ever changing environments strategic alliances have emerged as a driving force behind the success of many business ventures in India and US. Strategic alliances with US firm allow Indian firm to expand their reach without having to maximize their risk or commit themselves beyond their core business and vice versa. Alliances are a way of reaping the rewards of team effort - and the gains from forming strategic alliances appear to be substantial. Companies participating in alliances report that at much as 18 percent of their revenues come from their alliances. Increasing intensity of competition, a growing need to operate on a global scale, a fast changing marketplace, and industry convergence in many markets are the motivating factors of strategic alliance. STRATEGIC ALLIANCES ....... The establishment of strategic alliances among organizations is a rapidly merging phenomenon, and has been given inadequate attention in many boardrooms. Many strategic alliances involve, and are predicated on, the availability of information technology that gives structure to these arrangements. Many forms of these strategic alliances exist. Alliances are formed for joint marketing, joint sales or distribution, joint production, design collaboration, technology licensing, and research and development. Relationships can be vertical between a vendor and a customer, horizontal between vendors, local, or global.