India as a Good Investment Destination - Case Study Example

The paper “India as a Good Investment Destination" is a meaningful example of a case study on marketing. The goal of the study was to conduct a thorough analysis of a country in which a company wanted to invest in. The purpose of the analysis was to determine what mode of entry the firm should use to penetrate the new market.

The major findings were as follows:

• India is a good market to invest in due to investor-friendly policies, a large middle class with increasing purchasing power and a largely untapped pet care market
• A number of Multinationals have shown interest in the Indian market in the Pet Care category. This can be viewed as a threat, but also shows that there is real potential given that global players have invested heavily in this market
• The best mode of entry into the Indian market would be through a wholly-owned Subsidiary.

Based on the in-depth analysis, recommendations would be as follows:

• The company should proceed to invest in the Indian market
• The company should pursue a cost differentiation strategy when entering this market
• The company should consider penetrating this market by way of a fully owned subsidiary
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  • Identify a potential foreign market to expand into the pet care category
  • Discuss an in-depth review of the foreign market which includes a review of its macro-economic factors, a SWOT analysis, and possible marketing strategies
  • Review the differ
  ent potential foreign-entry strategies and consequently identification of the most suitable entry mode into the foreign market objectives of the assignment
• 1.2. Foreign Market Selected

The chosen foreign market to invest in was India. India as a D&E market (Developing & Emerging) Market has a higher potential for growth and is accurately perceived to be so. In a survey conducted by the Japanese Finance Corporation (Dec 3rd, 2010), India was named the “most promising markets for business operation in the long term”.

Furthermore, the Indian government has put in place favorable foreign direct investment policies to attract investors such as reduced taxes for companies setting up away from the major cities. India as an investment destination has received positive recommendation; the European Central Bank (2008) even goes as far as to call China and India “The twin titans for the new millennium”.

• 2.0 Situation Analysis
• 2.1 Pestle Analysis

In this section, we will analyze the political, economic, social, technological, legal and environmental factors in India so as to have a thorough understanding of the current all-rounded market situation. The information will aid in determining whether to enter the market and what strategy to pursue to initially penetrate the market.