Question

Identify an emerging market country that you would want to expand your business into and be prepared to discuss the following areas: (1) Identify any product or service you wish to implement, (2) Factors on why you selected that country, (3) Five bullets each of the Pros vs. Cons for operating in that county (4) What is your risk mitigation back up plan to prevent failure.

Answer 1

An emerging market country that i would want to expand my business would be India

I would like to launch a fertilizer industry in India..

Factors on which i selected India are because:-

a) india's primary income is based on agriculture that means majority of the population are dependent on agriculture which implies there will be high demand of fertilizer.

b) India has a huge population and there will be plenty of demand of the product which means economies of scale can be achieved

c) ease of business.

d) stable government..

e) good infrastructure..

f) well connected with the roadways, railways and waterways.

Pros for operating in India are:

• abundance of labour: India is a labour intensive country. In india industry can easily get cheap labour
• high population: since majority of population is dependent on agriculture so fertilizer will always be in demand. There is no need to create demand for the product.
• Good Infrastructure : India has a good infrastructure for industries to work. There is always good supply of water and electricity.
• Less competitors : Though farming is the major source of livelihood in india still it is the most ignored sector. very few Companies see business opportunities in this sector.
• Make in india programme : indian government has started a scheme where it promotes foreign players to produce in India. They give a lot of assistance to those who do so. Hence it is an important factor in choosing country like India.

Cons for operating in India are:

• illiteracy : illiteracy among farmers in India is on higher side. It is very difficult to make them understand the use of that particular fertilizer. They still practice orthodox methods to make the soil fertile or they buy inferior products.
• high advertisement cost.
• will take lots of effort to capture the huge indian market.
• tension between the host and domestic country.

My risk mitigation backup plan to prevent failure is i will set up my industry with the help of government where government will also promote my product because of higher share of taxes given by our company to the government.

Will not associate celebriries to promote the product which will result in low cost and hence we can supply at a very cheap cost.

Will also engage experts who can provide their expertise in farming and its practices.