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

1.

The selection of business for expansion will be travel and tourism services in the country of India. The rational for this business in the country of India is that the country has been the major service provider with more than 50% of the GDP is contributed by the service sector. Besides, there are increasing trend in the purchasing power of the Indian audience and they like to travel not only in overseas locations, but also in domestic locations also. Besides, different festive needs as well as weather conditions, make the travel and tourism industry to be active throughout the year in India. So, there is a strong possibility of making good business and value creation for round the year. Hence, India is a good choice for expansion of travel & tourism services.

2.

Factors responsible for the selection of the country of India are as follows:

A. Political stability

B. Stable law & order situation in the country

C. Good IT infrastructure in the country

D. Growing the base of rick people who like to travel

E. Increasing purchasing power of the people in the economy

F. Many domestic locations that can be developed as attractive tourism locations

3.

Pros for operating in the country are as follows:

1. A favorable government policy

2. Business conditions have now been eased.

3. A presence of good internet and IT infrastructure

4. A huge market belongs to different needs and demands

5. Presence of domestic tourism spots

Cons for operating in the country are as follows:

1. Tropical climate, so that it can become a hindrance.

2. Red Tapism still present in government agencies

3. Presence of corruption

4. Diversified and scattered choices due to culture, values, religion and other social factors

5. Affordability given more preferences than the quality in mass audience

4.

To prevent the failure, the backup plan is to build strategic tie -ups with the already established market players such as Thomas Cook or Make My trip, Mahindra Holidays and become the part of their value chain for some part of the market. It will reduce the risk and on a profit sharing basis, the operation will continue without failure.