Subject : International Business Environment
Objective : To study the entry of international and national brands in national and international markets respectively. How and When did they enter and what was their story of success.
4. WHIRLPOOL CORPORATION
Founded By: Louis and Frederick, along with their uncle Emory, founded the Upton
Machine Company in1911.
Came to India: In 1987, Whirlpool began selling compact washers in India.
Whirlpool entered the Indian market in the late 1980s as part of its global expansion
Headquartered in Gurgaon.
Owns three manufacturing facilities at Faridabad, Pondicherry and Pune.
Mode of Entry: Joint venture with the TVS Group in 1991.
Established the 1st Whirlpool manufacturing facility in Pondicherry, where it
manufactured washing machines.(1995)
5. WHIRLPOOL CORPORATION
Started selling in India: Washing machines, refrigerators, microwave ovens, and air
Problems: Cost Control
Raw material cost, which accounts for 55-60 per cent of the total cost
Also, the company which imports 27-30 percent of raw materials is now increasing
domestic sourcing to save itself from rupee depreciation.
Sales: Earns the revenue from:
Refrigerators - 59-60%
Washing machines - 20-22%
AC - 10-11%
Microwave ovens - 3%
6. WHIRLPOOL CORPORATION
In 1988, Whirlpool bought a 53% stake in the large-appliance division
of Philips N.V
It was a joint venture called Whirlpool International.
The purchase made Whirlpool the world's largest manufacturer of
major appliances, with annual sales of approximately $6 billion.
Competition: Voltas, LG, Godrej,Bluestar
7. NISSIN FOODS
Founded By: Momofuku Ando, aTaiwanesemigrant
1958:Japanese food company that specializes in
production and sale of convenience food and instant noodles.
Came to India: In1987
Mode of entry: Factory in Bangalore was established by 1991,introducing
TopRamen and Cup noodles for the Indian Market.
Set up Factories in Haryana, Odisha & began its own distribution in
8. NISSIN FOODS
• Problems: After the Maggi controversy, even they went
through checking of lead and it was found high in their
TopRamen variety and they had to withdraw their noodles.
• Sales: In India was valued at INR 93.66Bn in 2017and is expected
to expand at acompound annual growth rate (CAGR)of ~5.6%
during 2018- 2023.
• Nissin Scoopies and Top Ramen variety of Nissin enjoys 6th
and 8th position in Top 10Most Selling Noodle Brands in
9. NISSIN FOODS
Corporate Restructuring: Subsidiaries like
Nissin Food ProductsCo., Ltd.
Nissin Cisco Co.,Ltd.
Nissin Frozen Foods Co.,Ltd.
Acquisition: Acquisition of an equity stake in Angleside Ltd. in Russia
(current name: Mareven Food Holdings Ltd. in 2009.
Acquisition of an equity stake in MYOJO FOODS CO., LTD., 2006.
Competition: Maggi, Knorr, Sunfeast, Patanjali, Ching's, etc
About the Company: Autombile company
Founded by: Chung Ju-yung
Founded in: 29 December, 1967
operates the world's largest integrated automobile
manufacturing facility in Ulsan, South Korea
Entry in Indian Market: May 1996, Hyundai Motor
India Limited (HMIL) was formed
Mode of Entry: Launched its first production plant
at Irungattukottai (near chennai) in Tamil Nadu in
Production: HMIL became the second largest
automobile manufacturer in India within a few
months of its inception.
Largest automobile exporter in India
The second largest car manufacturer in India
Problems: HIME started its journey in India giving a
tough comeptition to Maruti.
Sales: HMIL has 475dealers and more than 1,300 service
Presently markets 10 models – Eon, Grand i10, Xcent,
Elite i20, i20 Active, Verna, Creta, Elantra, Tucson, and the
Domestic sales in 2019 = 510,260
HMIL is a wholly owned subsidiary of HMC, South Korea.
Hyundai came to the rescue and purchased 51%of the company,
allowing Kia to continue marching toward their destiny. These
days, their relationship is both more equal and more complicated.
Hyundai Motor Group owns about 1/3 of Kia's total shares and Kia
owns about 20 of Hyundai Motor Company's subsidiaries
Competition: M&M, Maruti, TATA
About the company: Swiss multinational food and
drink processing conglomerate corporation.
Known as Nestlé S.A. (Société Anonyme/ Public
Founder: Henri Nestlé
Founded in 1905
Largest food company in the world, measured
by revenues and other metrics.
Entry & Mode of Entry in Indian Market: Nestlé India
Limited was incorporated at New Delhi on 28 March
First production facility built in 1961at Moga,
Second plant was set up at Choladi in Tamil Nadu,
the plant was built primarily to process the tea
grown in the area.
Company entered the confectionery business in 1990
by introducing Nestlé premium chocolate.
Problems: Nestlé India's instant noodles product 'Maggi
Noodles' was banned by the Government of Delhi for a
15day period after lead and monosodium glutamate in
samples of the product were found to be beyond
Incinerated 38,000 tonnes of Maggi at 1
raised doubts amongcustomers
Production: The company's products include food,
beverages, chocolate, and confectioneries, such as:
Maggi, Nescafé, Milkmaid, Cerelac, KitKat, Néstea etc
Sales: Nestle is expanding its rural sales network and
expects to have around 30-35% of its total sales coming
from the country's hinterland in the next 2-3 years.
Last year in December : Rs. 12615.78(in crores)
Nestlé India Limited is the Indian subsidiary of
Nestle India Limited had acquired 26%stake in
Indocon Agro and Allied Activities Private Limited
Engaged in milk collection business in Western India
Competition: Hindustan unilever (subsidiary of
Unilever)- coffee, Tata Consumer Products, Britannia
19. H & M
About the company: Stands for Hennes & Mauritz AB
Swedish multinational clothing-retail company
Headquarters: Stockholm, Sweden
Founded by ErlingPersson
Known for its fast-fashion clothing & accessories
for men, women, teenagers and children.
20. ENTRY IN THE MARKET: H&M ENTERED INDIA
ON 2 OCTOBER 2015 BY OPENING ITS FIRST
STORE IN NEW DELHI.
Mode of Entry: Currently has 39 stores in the country
Opened wholly owned stores, making the total of 39
Launched online at hm.com in 2018 and also gave
access on Myntra to buy its products.
Sales: More than 550 stores in 12countries making it
one of the most successful cothing retailers.
H & M
21. PROBLEMS: THE STUDY BY THE ASIA FLOOR
WAGE ALLIANCE (AFWA) FOUND WORKERS FACED
PROBLEMS SUCH AS LOW WAGES, FIXED-TERM
CONTRACTS, FORCED OVERTIME AND LOSS OF
JOB IF PREGNANT.
Corporate Restructuring: H&M includes 8 brands-
COS,Monki, Weekday, H&M HOME, ARKET.
Competition: GAP, Forever21, Max, Lifestyle, Westside,
H & M
22. About the company: Thyrocare Technologies Limited is
a chain of diagnostic and preventive care laboratories,
based in NaviMumbai.
Started in 1996by A. Velumani, ex-scientist at
Bhabha Atomic Research Centre (BARC), Mumbai,
Thyrocare mainly deals with thyroid testing along
with more than 200 tests and 50-odd profiles
comprising different tests for preventive care and
wellness under its brand, Aarogyam.
23. Entry in Foreign Market: The company has 1,122outlets
and collection centers across India and parts of Nepal,
Bangladesh and the Middle East.Outside India :
Thyrocare Gulf, Thyrocare Nepal, Thyrocare Bangladesh
Mode of Entry: The first laboratory was set up in
Byculla, Mumbai, with an initial focus on thyroid testing
considering a huge potential for thyroid testing in India.
24. Problems: To provide high-quality diagnostics at a low
cost, they neededscale.
Transporting specimens or reports are very costly
considering courier and air-cargo costs
Sales: Thyrocare is today the world’s largest thyroid
testing laboratory. It has a single world-class centralized
laboratory in Thane which can handle 500,000 tests a
• Corporate Restructuring:
•In 2010,Thyrocare raisedits first private equity funding with INR 188crore from New
Delhi-based CXPartners for a30%stake. It set up a subsidiary, Nuclear Healthcare Limited,
which usesPET-CTto detect and locate cancerouscells
• In 2014,Siemens Healthcare's Diagnostic Division installed it's world's largest laboratory
automation track – Aptio Automation – at its laboratory in Mumbai. Thyrocare becamethe
first laboratory in India to install this automation by Siemens.
• Competition: Dr LalPathLabs,SRLdiagnostic,Metropolis.
26. About the company: Standard Chartered PLC
(Public Limited Company) is a British
multinational banking and financial services
company headquartered in London, England.
Founded As: Chartered Bank of India, Australia
and China on 29 december 1853As Standard
Chartered on 18November1969
27. Entry in the market: Standard Chartered Bank
has been operating in India since 1858.
India’s largest international bank with 100
branches in 43cities.
Include Corporate & Institutional Banking,
Commercial & Private Banking as well as
Mode of Entry: Chartered opened its first
branches in Mumbai (Bombay), Kolkata
International Business Environment:Standar
Chartered Bank has downsized employee
strength in the country by 200 as digital
banking alternatives gainsteam.
Sales: They have increased their lending to
clients by nearly 20 per cent from $8.2 billion to
$9.9 billion ending December 2016, making a
substantial contribution to individuals and
businesses in India
29. Corporate Restructuring: Standard Chartered also has the following
subsidiaries operating inIndia:
Standard Chartered Securities (India) Ltd
Standard Chartered Investments and Loans (India) Ltd
Standard Chartered Financelimited
Standard Chartered GBSPvtLtd
Competition:HDFC, ICICI, AXIS, SBI Banks
30. About the company: American multinational delivery services company
Headquartered inMemphis, Tennessee.
The company is known for its overnight shipping service and pioneering a
system that could track packages and provide real-time updates on package
location, a feature that has now been implemented by most other carrier
Entry In India: FedEx first began operations in India in 1984.
Mode of entry: They were the first carrier to launch an all-cargo flight from India,
and today they offer more flights to and from India than any other cargo company.
31. Production: The FedEx "Hub Network" is a system of 25distribution centers
located in or near major cities. All packages designated for ground shipment go
When a package enters the hub, the shipping address is scanned and entered into
The package eventually reaches a truck heading to one or more destination hubs.
Packages scheduled for local service go straight to a delivery vehicle.
Sales:Across the world, the $39-billion FedEx is clearly the sector leader. But in
India, even after running for 15years, it hasn’t been able to close the gap with DHL,
In early 2008, FedEx officials in India thought of Project Indigo (the India Domestic
and International Growth Opportunity), a plan to bring about structural changes
in the way FedEx was running its India operations for the past 1
32. International Business Environment: The company acquired the logistics, distribution
and express businesses of AFL Pvt Ltd (AFL) and affiliate business Unifreight India Pvt.
The acquisition included AFL WiZ Express, which offered domestic express
services through more than 150 Express Service Centres in 144cities, with more
than1,000 couriers across India.
Competiton: Ekart, Blue Dart, DHL, Xpressbees, India post
33. COMPANY PROFILE: Swedish music streaming and media services
Founded On 23April 2006
Operational: Stockholm, Sweden
Corporate: New York City, U.S.
Founders : Daniel Ek, Martin Lorentzon
Entry in Indian Market: Spotify launched in India on February 28, 2019.
Mode of Entry: Spotify comes to India with the Spotify app available to
download for free on play store. Within the first week of its launch, it
secured 1million users on the platform.
34. International Business Environment: The streaming platform doesn't
have tie-ups with telcos or smartphone brands in India. Apps like
JioSaavn and Wynk Music are free for Jio and Airtel users respectively.
The unavailability of songs from popular artists was a major
disadvantage for Spotify in India, a very competitive market with
dozens of players.
Production: Spotify developed itself over the years in many unique ways
and offered different yet similar kinds of schemes in different countries
While free accounts remained available by invitation, the launch
opened paid subscriptions to everyone. At the same time, Spotify AB
announced licensing deals with major music labels.
35. Sales: As a user continues to use Spotify, the app starts recommending
playlists based on the user's listening habit. Spotify hosts over 3 billion
playlists in India.
More than 200 million Indians stream music online.
Corporate Restructuring: Spotify India has also made a deal with T Series,
and hence, it has got access to 160,000 songs which Spotify can stream on
its platform.Spotify India holds nearly about 15percent of the Indian
streaming market after a year of its launch.
Competition: JioSaavn, Wynk, Gaana,Apple & Amazon Music
36. About the company: American Massive open online course (MOOC)
Founded in 2012.
Founded By: Stanford University's computer science professors
Andrew Ng and Daphne Koller.
Offers massive open online courses (MOOC), specializations, degrees,
professional and master track courses.
Entry in Indian Market: InNovember, 2014.
Mode of Entry: Online mode; Partnered with Indian School of Business
37. Problems: Connectivity remains a major barrier in many parts of the
Production: Coursera mainly works with universities and colleges but also
with corporations (like Google) and governments.
University partners include University of São Paulo in Brazil,
University of London in the UK, Indian School of Business of India,
helps in creating content.
Competition: Udemy, Skilsoft, Udacity, Khan AcademyC, odeacademy,