Seminar 3 Articles Flashcards
What are the 3 reasons global firms should keep investing in India?
1) India has seen growth in infrastructure
2) Indias emerging middle class is strong
3) The country is in a tech start up boom
What involved with Indias growth in infrastructure?
- Increase spending on infrastructure such as airports, cities hotels and ports
- Expanded solar generating capacity and plans to catalyse 200-300 billion of new investment in renewable energy infrastructure
- However its estimated they need 5 trillion to sustain this economic growth which opens up opportunties for multinationals who have the core competencies to achieve this that local companies do not
What involved with Indias emerging middle class? Which company saw success and why? which company failed and why?
- Amazon saw success with the low cost KWID car even though two local companies had established themselves as market leaders
- This was because there CEOS had a strategic and long term commitment to the indian market
- They built strong local teams in In India and shifted their resources and decision making their
- They evolve their business models and make products that are appealing, affordable and accessible to the emerging middle class
- Apple failed in India as they waited until Indians get wealthier and fit the business model rather than offering products that are customised to the India consumer Like Samsung did
How is India in a tech startup boom?
1) Investment in technology - ‘India Stack’ which was an infrastructure which allowed governments, businesses startups and developers a common digital platform on which they can build paperless and cashless services
- Made things for efficient
2) Indias has a vast number of consumers and a large high educated talent base - Has 10,000 engineering institutes that produced more engineers than china and the us combined. They add 10-12 million young ppl to their workforce each year
3) Indias problems cannot be solved without levereging technology
- India has many problems including shortage of hospital bed and medial professionals, the education system is also suffering due to the far few teachers
- Hugh opportunities for tech startups within these areas
Why is chinas infrastructure better than Indias?
- Chinas is shaped by stronger state support and is typically better organised
What are the three key actors within China?
Ecosystem orchestrator
Ecostyem participants
Ecosystem intermediaries
What is meant by Ecosystem orchestrator?
China has spawned strong home-grown rivals that shape the competition among corporations for the hearts and minds of startups
- They initiate and set operational guidelines
Ecostsyem participants ?
Listen to the government’s national priority areas which in influences the capabilities and orientation of the partner pool that a multinational can tap
Ecosystem intermediaries ?
nurture startups typically embody local government e orts through which state policy is implemented on the ground.
What are the three ways multinationals’ startup partnering strategies in China be adapted to address the unique partnering opportunities and challenges?
1) Differentiate against home-grown rivals
2) Align partner programs with national priorities
3) Leverage local government policy e orts.
What is meant by differentiate against home-grown rivals?
Western multinationals operating in China are competing not only with each other but, more significantly, also local rivals and must differentiate themselves more forcefully than is necessary in India by, for instance, playing to their strengths in B2B rather than B2C business models.
What is meant by Align partner programs with national priorities?
In china their priories seem to focus on artificial intelligence and the internet of things
- Startups in China are more likely to get more bang for their buck by seeking out startups whose focus is aligned with those priorities
- By contrast, India may well see more bottom-up initiatives
What is meant by Leverage local government policy efforts?
- Chinas policy represents an opportunity to tap into ecosystem intermediaries that help enhance the effiencetly of their strart up partnering efforts