Getting India and China Right by Anil Gupta and Haiyan Wang - Book Report/Review Example

The authors argue that being merely present in the economy of either China or India is not a necessity to success. A company should therefore employ its resources to leverage the rapid rise of China and India to change how the company operates. Without such efforts, a company is not likely to be in existence after a period of 10 to 15 years. This is the thesis of the book. There are four distinct features or opportunities of China and India is presented in this book. These opportunities make these two countries different form others in world.

First are their mega markets. These countries provide a ready market for all product and services. They are cost efficient especially because their labor markets are affordable to most multinational companies. The two countries have an innovation platform characterized by talented engineers and scientists who can increase a firm’s technical and innovation capabilities. Finally, their economies act as launching pads for new global competitors. In this book, the authors explore some 6 major imperatives.

First is to compete in India and China simultaneously. This is because their markets are top 4 or 5 any product or service. India and China provide complementary strengths in services and manufacturing respectively. A company is likely to benefit from transferred knowledge from one to the other country because of their similarities. The risks (such as political, economic, and intellectual property risks) that arise from operating in one of the two countries are reduced by investing in both. Secondly, the book advises that competition for mega market dominance should be through micro-customers.

The book illustrates how to compete at the top, middle and bottom of the pyramid in India and China. They believe that competing at the bottom has the greatest of opportunities for innovation s and companies should use this experience to develop new business models. Thirdly, the author teaches on how to compete with locals via 3 strategic initiatives. This includes to neutralize their supply chain by utilizing the cost advantage and innovation opportunities in India and China, pursue an integrated India and China strategy which is hard for emerging businesses in these countries and to attack the emerging titans on their own home-ground.

Fourthly, the book teaches on how a business can leverage China and India for global superiority. This is because the two countries have opportunities in cost arbitrage, intellectual arbitrage, and business model innovation. The three are vital for creation and increase of global competitive advantage. In fifth place is the writers’ suggestion that firms should compete for local talent. This can be done by the businesses familiarizing themselves with local media and universities. They may also promise their employees with better careers in the global labor market.

Firms should pay attention to social and cultural mores in order for a firm to create strong emotional ties to employee families. Hiring in 2nd and 3rd tier towns and cities reduces alary scales and reduce turnover rates. Last but not least, it is vital for multinational corporations and global companies to ensure that their management understands the meaning of being a global enterprise. Tis should be done by rethinking a firm’s global strategy, innovation, organization, and mindsets of management.

it is important for a firm to be a leader in these four area lest it gets