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Political systems in India - Essay Example

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Culture has always proved to be a deciding factor in pleasing customers. Customers in Bahrain have a distinct set of requirements as compared to customers in Europe. The mindsets of people, which are more a matter of inheritance than development, must be properly attended to if corporate houses are to be successful…
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Political systems in India
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A research paper on Political systems in India for the purpose of bringing Nokia to the country By Vivek Shivram d 16th October, 2006 Introduction
Culture has always proved to be a deciding factor in pleasing customers. Customers in Bahrain have a distinct set of requirements as compared to customers in Europe. The mindsets of people, which are more a matter of inheritance than development, must be properly attended to if corporate houses are to be successful. Turning a blind eye to specific consumer requirements would not only stunt the project's success, it can devastate the company's fortunes in the long run.
The Indian market, like all others, has certain specific requirements that have to be fulfilled. A consumer market which is perhaps the largest in Asia, India's consumer community is a perfect mix of the choosy, open-minded and liberal sorts of people. And, with perhaps the greatest market in the whole of Asia, India would be an obvious target of Nokia Mobile phones ltd. A robust economy, led by able and intelligent men, and a great variety of people with a variety of needs, Nokia would not only be hugely successful, but also would have the added advantage of successful experimentation.
An Overview of Nokia
Nokia, a Finland based company, initially started out as a pulp industry before emerging as the Telecommunications giant. Named the world's most respected company for production of consumer durables, Nokia is the world's largest cellular phone company, with a global market of 34%, as on Q2 of 2006, and has a net worth of 4.639 billion Euros1. With headquarters in Espoo, Finland, Nokia's R&D facilities are spread out all over the world.
Examining India as a potential market
The Indian market is best for launching Nokia phones due to a variety of reasons. Firstly, the market is not uniform. The market comprises of different sections of people, who have diverse tastes and needs. Fulfilling all those needs would be a challenge for a cell phone giant like Nokia. Secondly, the Indian market provides excellent grounds for experimentation. The people are always open to new and exciting ideas. To test new products and launch new brands, a market like India would be the greatest advantage to Nokia. Finally, the Indian market is led by capable men, and the democratic setup and financial flexibility gives room for everyone to participate properly. India has introduced financial and fiscal reforms, and has opened its market to global players. The problem of entering the market, therefore, is completely solved. India has never looked this global before, and so is an excellent choice for investment.
India's Political and Legal Outlook
India is a quasi-federal economy. It has the flexibility of capitalism as well as the regulation of socialism, in justified amounts. The country's government introduced economic reforms in 1991, and the whole process of liberalization, privatization and globalization is going on in full swing. 10 years into reforms, India's hard work in trying to open its doors to the world is finally paying off. Globally, India is a major target for many consumer industries, explaining the $38,902 million FDI inflows in 2006-072.
From the legal angle, India is an open-minded economy, which provides enough flexibility to global players to help them in doing their job effectively. The legislation is not only tolerant, but also encouraging new players to come and explore the Indian market. Secondly, the legal system of India has been widely acknowledged as one of the fairest and best jurisdictions in the world. Hence, from the legal standpoint, there is nothing to fear. India is legally strong, competent and effective from all angles.
How the government works
The government of India is a fully democratic republic, with the government completely in the hands of the people. Free and fair elections are held every five years. The current government has fully extended its support to foreign players - making India a safe bet. Also, the five year election system ensures political stability.
The government is involved in the economy's functioning to some extent, but that is because of the socialistic components that are present in the country. The government initially controlled the economy with an iron hand in the late 80's, before the New Economic policy was introduced in 1991. The government's hold is slowly loosening on the Indian economy, which is an encouraging sign for the private sector.
Future Trends
The government of India envisions a developed status for India by 2020. And it looks all set to achieve this goal. At any rate, the government's main focus is on the economy and social development, and is leaving no stone unturned to woo the global market. There are no signs of political or legal instability in the long run, making India a safe bet for investment. In fact, it is important for Nokia to capture a big share of the market early-on, if it is to stabilize its position. There are many players dying to enter India, and Nokia should take full advantage of its elevated status if it wishes to make it big.
1. Wikipedia article, Nokia. URL:
2. ICFAI (Institute of Chartered Financial Analysts of India) case study, "Nokia's strategy in India". URL:
3. Ministry of Commerce and Industry, FDI factsheet. URL:
4. Nokia: Nokia's hottest spot. URL: Read More
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