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India has experienced tremendous market dynamism for ages and holds a global attraction for those companies who are keen to expand their business; there are many examples of successful FDI policies, and those successful policies make great impacts on the business expansion. As far as companies in the United States of America are concerned, India offers a great prospect to invest in an emerging economy that holds diversity in race and class due to the massive middle-class population. Below is a look at some of the most successful FDI and business expansion in India that showcases the fact that there is a lot of potential that US companies can tap.
The strategic FDI of Walmart in India is one of the best examples of the impact of the retail voice world. Walmart began its operations in India in 2007 with the help of a joint venture with Bharti Enterprises; its operations mainly included in-house and B2B operations. Initially, Walmart entered a few cities in India and slowly expanded its operation by taking cognizance of the local market and adjusting to the complicated retail regime of India. One such major strategy was the acquisition of Flipkart, which is India’s largest e-commerce company, in 2018. This step, in addition to establishing Walmart's market, demonstrated the possibility of the digital tide's impact on Indian business development.
General Electric has been operating in India since 1901; nevertheless, it was an extended investment that emphasized the company’s interest in expanding business in India. It has not only restricted its growth for manufacturing and R&D centers in energy, health care, and aviation in India but has also created job opportunities and put forward GE as the major player for infrastructural development in India. The success story of the company depicts how U.S. businesses can tap FDI as a major tool for transforming the structure of the growing market in India.
Ford Motor Company’s experience in India serves as a good example of when a company undergoes a lot of testing but remains relevant in the market. Lingering into the Indian market in the mid-1990s, Ford Company experienced several barriers that included severe competition and volatility in demand. However, the company has been highly dedicated in its effort to always remain close to its clients and is constantly investing in manufacturing and research and development costs. The Ford example of growth in India is a good lesson as to how challenging the international expansion may be and how long it may take to yield desired results depending on the last parameters of consumers’ behavior in target countries.
The early 1993 saw a new dawn for Coca-Cola when it decided to re-liquidate in the Indian market after 15 years of its complete withdrawal. Coca-Cola had a strong investment plan and soon had a huge distribution channel; the company adapted its products to the local Indian palate. The story of the brand can be taught as the success achieved in India by presenting the international brand appeal coupled with the localized approach, which is one of the essential recommendations for any U.S. business that is willing to enter the Indian market.
Such examples show that strategic planning, market analysis, and partnership with local stakeholders are of paramount importance when engaging in business growth in India. However, for the U.S. companies interested in simulating such successes, the best approach remains joining forces with a veteran like Fox&Angel. Fox&Angel focuses on the Indian market with strong local knowledge and experience and thereby provides appropriate strategies to businesses to provide them the opportunity to flourish in a new market with minimized risks.
The global companies like Walmart, GE, Ford, and Coca-Cola have done well in India, which can be a good model for the U.S. firms wanting to go global. Some challenges that arise from India’s large and competitive marketplace, together with a careful approach to FDI, should by no means discourage someone who wishes to invest time and effort into learning and responding to the country’s specifics.
So if you are open to the horizon of immensities that entail business outlook in the Indian subcontinent, Fox&Angel is all set to lend a helping hand. With the help of our advice, your company will be able to deal with the Indian market and become as successful as the giants that came before you.
Contact us today to begin your journey of expansion and success in India.
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