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Group 7

Aniruddh Naidu C043

Prabhat Singh C056
Swetank Sinha C058
Hemant Sultania C060
Prasad Temgire C061
Vipul Tyagi C062
 International expansions  Business opportunities presented by
target markets
 Common objectives
 Increasing revenue
 Escaping saturated market
 Entering emerging or lucrative market

Reasons for Success Reasons for Failure

 Understanding customer  Lack of understanding of

experiences customer experiences

 Flexible and responsive supply  Supply chain issues

 Poor strategic decisions
 Top management focus and
commitment  Slow rate of expansion
International Expansion

The AAA Triangle framework: This framework aims to help companies decide on the
most appropriate overall strategy for creating value through international expansion.

Adaptation focuses on ‘localization’ –
tailoring products or business models to
the preference of the local market.
Companies with this strategy often
develop products customized to the
specific country.

Aggregation focuses on
‘standardization’ creating or utilizing
existing economies of scales across
Arbitrage focuses on ‘exploiting’ differences
multiple locations. Companies with
between locations for the benefit of the whole
this strategy tend to leverage already
organization. Production cost is the most typical
established products or expertise, and
example – e.g. having factories in locations with
market them to the new location
lower raw material and labor cost.
through active advertising.
Bharti Airtel

 Founded on 7th July 1995 It is the largest mobile network

operator in India and the third
 It operates in 18 countries across South largest in the world
Asia and Africa
Products: Fixed line telephone Airtel is credited with pioneering
the business strategy of outsourcing
Mobile phone
all of its business operations except
marketing, sales and finance
Satellite television
Digital television
 Bharti Airtel has been featured in
Internet television
Forbes Asia's Fab 50 list
 On 18 November 2010, Airtel
rebranded itself in India with a
new logo

 Bharti Enterprises has dropped a

plan to pursue a mega-alliance
with the Tata Group’s telecom
Reasons for International Success / Failure

 Cut and paste model: A global brand positioning and a cut and paste attitude

 Lack of Insight on Consumer Behaviour: Company failed to adapt to local tastes

 Macroeconomic Factors: External factors played a role(currency fall, economy

weakness with crude fall)

 They got a very poor asset. Zain had not invested much in key things such as
brand and network, which made integration more difficult

 Bharti decided to sell the four subsidiaries in Burkina Faso, Chad, Congo
Brazzaville and Sierra Leone to fund its Nigerian subsidiary

 Poor distribution model: They dropped Celtel’s distribution which was proving
effective and went for the Indian model of micro distribution.

 Impatience: Airtel has had seven CEO’s in the last 11 years while their
rival Safaricom has had only 2 in same period.

 Abnormal salaries: Airtel company pays the highest salaries across Africa-the
salaries are above market prices
Mahindra & Mahindra

 Founded in 1945
 Joint venture with International
 Flagship company of US$ 3 Billion
Truck and Engine corporation of
Mahindra Group
the US and the Renault Group of
 Two operating divisions
 Automotive Division
 Farm Equipment Division
 World’s largest selling tractor
 It also has defense system division

 Around 90% of the tractor exports

to the developed market of the
USA (75HP)

 Assembly operations in the US

and Australia

 Entered China through

acquisition of a tractor company
Mahindra & Mahindra Farm Equipment

 Fifth largest tractor manufacture in

China, Mahindra Yueda
 300 strong pan china dealership network

 Entered in 1994
 Product Localization – 18-105 HP

 Presence in over 40 countries

ROW  2.25 million tractors sold
Portfolio  Offering over 75 models
 Different demands of different farmers
Mahindra & Mahindra Automobile
 Vehicles sold in over 70 countries
 R&D facilities in India and the US
 SsangYong Motors of South Korea – Global Mobility Brand
 ‘South Africa’s top growth brand
 Expanding Latin American business
Chairman W Kryon

Korando Rexton

Rodius Tivoli
Reasons for International Success / Failure
 Mahindra USA ranked among the Top 3 manufacturers in overall
dealer satisfaction
 Led the competition in
 Marketing and advertising support
 Product Technical support
 Warranty Payments
 Return Privileges
 MUSA targeted a smaller agricultural niche and coupled it with
personalized service

Understood its customers – Product Localization

Local Management and Business Partners

Top management focus and commitment

Diversified product portfolio

 London stock exchange company
 Operations span across India, Zambia, Namibia, South Africa,
Ireland and Australia

Copper Silver Oil & Gas

Zinc Aluminum Power

Reasons for International Success / Failure

Did not consider locals

Environmental issues in India affected International operations

Legal issues faced in India

Inadequate research before starting operations