International Supply management
International supply management. India Smith 45% Overall Similarity The combined total of all matches, including overlapping sources, for each database.
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Summary
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The Entering a Foreign Market Through Exports
India Smith
University of Arizona Global Campus
MGT 370 International Supply Chain Management
Professor Jeffery Turk
11 July 2022
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Executive Summary
India is among the fastest emerging economies globally. India’s Gross Domestic Product
(GDP) is higher than most emerging economies. The country is located in Asia and has a
population of 1.4 billion (Worldometer, 2022). Expansion to the Indian market through export
has been made possible by the nation’s friendliness to developed nations like the U.S.A. Various
factors present an opportunity for companies that want to enter the Indian market. The country’s
population is the first opportunity companies can look at when expanding their markets.
India is a member of the World Trade Organization and other trade organizations that
improve trade pacts with India. Companies would leverage these pacts to enter the market. Pacts
like bilateral trade agreements offer a more suitable way for companies to enter India through
export. The Indian system offers more opportunities for United States companies that want to
export various products to India. However, exports to India are limited to certain industries,
including energy, healthcare, environmental technology, safety and security, information
communication, and technology. The infrastructure favors exports as they are dependent on road,
rail, air, and sea.
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The Entering a Foreign Market Through Exports
India is one of the fastest emerging economies globally. The country’s Gross Domestic
Product (GDP) has been on the rise over the last two decades after the nation initiated various
trading agreements in 1991. Since then, the United States has been one of India’s largest trading
partners. This creates an opportunity for United States companies that want to export to India.
India has the second-largest population after its neighbor China. According to Worldometer
(2022), India’s population in 2022 will be 1.4 billion, with a population growth rate of 1.02%.
The population is composed of a massive youthful population as the country’s median age is 28.4
years. Exporting to India presents challenges like high tariffs and protection policies, price
sensitivity, poor infrastructure compared to developed nations, and the power of the twenty-nine
Indian states. However, some benefits and opportunities are present for companies that want to
export to India. The opportunities include the foreign policy on trade, export assistance, fewer
export compliance issues, and the high youthful Indian population. This paper looks at how High
Tech Tools, Inc., a United States company, can leverage some of the opportunities to enter the
Indian market through exports.
Benefits of Exporting High Tech Equipment to India
India introduced foreign policies in trade which have, over the last two decades, helped
the nation grow its trade internationally (Menon, 2021). The foreign policy of 1991 focused on
improving India’s trade through economic cooperation and trade agreements with various
nations. India joined the World Trade Organization in 1995 to enhance its trade relations. The
country also has various bilateral trade agreements with other nations, including the United
States, which would increase its international trade. The presence of India in international trade
presents an opportunity for nations that want to export to India. This includes nations that partner
with India in various trade organizations and bilateral agreements. These agreements and trade
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pacts make it easier to export high-tech equipment to India. Companies can leverage the
agreements to export to India.
Exporting to India would significantly expand the international market for High Tech
Tools, Inc. This is because India offers a good market opportunity for the company’s main
product, high-tech equipment. India’s youthful population is more likely to accept the high-tech
equipment due to its various uses in ports and measuring the speed of moving objects. In sport
cricket is the most dominant sport in India. The sport has various similarities to baseball in the
United States and would benefit from the use of high-tech equipment to measure the ball’s speed.
India presents more export opportunities than challenges. The country has trading
opportunities in energy, healthcare, environmental technology, safety and security, information
communication and technology, and others (Mallick & Marques, 2017). The export assistance
offered for United States companies exporting to India makes it easier for companies entering the
Indian market through exports. The export assistance is offered through trade missions, the U.S.
Chamber of Commerce, and the U.S. Commercial Services Offices.
India’s Infrastructure
According to the World Bank (2011), roads are India’s most dominant transport system.
They carry 85% of the country’s passenger traffic and more than 60% of its freight. The road
networks are developed in the cities and towns in India. This makes road transport the most
convenient mode of transportation in India. The country also has a developed rail transport
system which ferries over 19.8 million passengers and 2.4 million tons of freight daily (World
Bank, 2011). This is based on data from 2011, and the numbers are likely to have increased by
2022. Rail is India’s largest employer due to the freights carried daily.
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International trade is dependent on various factors that include an effective transport
system. India offers an effective transport system that can be used in transporting goods within
the nation. The road network can effectively be used in transporting goods within all the cities in
India. This is the main advantage of exporting to India. The country has a vast transport network
that will allow the movement of goods to remote regions. (Manonman, 2018). India’s transport
network opens up the country’s remote regions, allowing access to all regions. The vast road
network will also allow for the movement of raw materials, equipment, and others.
The nation also has a vast rail network that can effectively transport large cargo. The rail
transport network is a unified state enterprise and one of the largest railway systems in the world.
The railway network has also undergone major changes that have broadened the network making
it more effective for the transportation of large cargo. The company would highly benefit from
the rail network when transporting large cargo within the nation. This is a major advantage for
High Tech Tools, Inc., which may have to transport large cargo within the nation. The rail
network will be used as a link from the ocean when the cargo lands in the U.S.
India is among the most innovative nations globally. Digital communication has evolved
in the nations, with more people using smartphones as a means of communication. This has
improved communication both locally and internationally. The internet is also advanced in India
as various telecommunications companies offer internet services. The transport and
communications systems in India are advanced, making logistics easier in India.
Supply Chain Assessment
The supply chain is an important aspect of the export plan of the company. The supply
chain consists of the people, enterprises, and processes that are involved in the manufacture,
distribution, transportation, storage, and delivering the final product to the customer. The supply
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chain process starts with the raw materials that are needed for the manufacture of the goods. It
also includes the methods that are used in the manufacture of the product and the procedures
involved in the promotion of the product. High Tech Tools, Inc. has to conduct a SWOT analysis
of the supply chain in India or come up with the strengths and weaknesses of the supply chain to
effectively prepare for the export business. High Tech Tools, Inc. has to use the supply chain to
secure a competitive advantage and improve its performance.
Strengths
The company manufactures high-tech equipment like the hand-held radar speed gun. This
is a specialty for the company meaning the product is of high quality. A high-quality product is a
supply chain strength as it is able to attract more customers. The company is able to venture to
other markets due to the quality of its product. The decision of the company to expand overseas
is based on the quality f the product. The company is sure to attract more markets based on the
quality of the product. The quality of the product is based on various factors, which include the
manufacturing strategy (Diaconu & Alpopi, 2014). The manufacturing strategy of the company
is well defined and used as recommended in the production of quality products.
The company has a stable market share leading to the decision to expand to overseas
markets. It has a clear trend in the exportation of their products in foreign markets. The market
chosen for export has cricket as the national sport. This will ensure the stability of the product in
the market. The stability of the product in the market is based on different factors which the
company can use to gain a competitive advantage. The stability in the market gives the company
an edge over its competitors in the new market.
Weaknesses
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The company has failed to provide information on the measurement of the supply chain.
There has to exist a planning process for the supply chain to be used as a competitive advantage.
However, the lack of a measurement process for the supply chain, a weakness of low
contribution to the development of a strategy will exist. This is a weakness as it will have an
adverse impact on the overall picture of the company. The company aims to expand to foreign
markets, and a measurement of the strategy will ensure a planning process exists. India is among
emerging markets and highly competitive. This requires a planning process that will be used to
measure the supply chain.
Factors of Competitive Advantage
The vast growth of India over the last several decades has led to an increase in the
number of multinational companies globally. All these companies are looking to set up shop in
India and capitalize on the huge Indian population and other factors. The competition in India
has grown exponentially with the increase in the number of multinational companies in India.
These companies also have to deal with various issues like an undeveloped supply chain and
factors of competitive advantage. Some of the factors of competitive advantage in India include
marketing factors, production factors, and research and development factors (Mukerjee, 2016).
The choice of India as a market is based on the fact that the company’s product is able to
measure the bowling speed of a cricket ball. Cricket is the national sport of India and is played
all over the country. The marketing factors of competitive advantage in India include the
production mix and pricing. The product has to meet the various needs of the customer for the
company to be able to create a competitive advantage with it. The company can only maximize
profit if the product is able to meet the various needs of the customer. Therefore, the design of
the product should consider the importance of cricket to the country.
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The price of the product is a major marketing tool that can be used in directing the
product to a specific customer segment. The price of the product is an important factor to
consider as it should ensure a return on investment. The price should be equal to the expectations
of the customer. Therefore, the price strategy should look at various factors in India, including
the economic conditions of India. The price should also be able to meet the customer’s
expectations. A premium pricing strategy will lead to fewer products being sold due to the
prevailing economic factors in India. The product is not a necessity, and the price should
consider all factors that will ensure the price becomes a competitive advantage for the company.
Economies of scale and locational advantages are the productional factors that can be
sources of competitive advantage in India. High Tech Tools, Inc. is a multinational company that
is able to engage in the mass production of hand-held radar speed guns. The company has the
ability to set up shop in India, where the company may produce the products. However, the
company also has the capacity to export radar guns. The company can benefit from exporting the
radar guns in mass. The capacity of the company will ensure the company enjoys economies of
scale that can be used as a competitive advantage. Mass production of radar guns can lead to cost
savings for the company.
Term of Sales Contract
1. The methods of payment include; cash in advance, letters of credit, open accounts,
documentary collections, and consignment.
2. Delivery duty paid.
Transportation Plan
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The transport system in India includes road, rail, and water transport. The cargo has to be
moved from the United States to India. This is the long-distance movement of cargo, and
intermodal shipping will be the best option for the company. Intermodal shipping involves the
movement of freight by two or more modes of transportation. The cargo will be packed in the
company’s manufacturing facility in Otay Mesa, California. The cargo will then be loaded into a
truck that will head to the port of San Diego. The cargo will be loaded onto the ship headed to
India. Transport from the port in India will depend on the buyer. The buyer may opt for rail
rather than the road to their preferred destination.
The transportation plan was chosen due to the various modes of transportation involved
in the movement of the cargo. The cargo has to be transported by road, sea, and even rail once it
gets to India. The choice of intermodal shipping is due to the various modes of transport
involved. Intermodal shipping will make it easy and cheap to move the cargo from California to
where the buyers are in India.
Conclusion
India is among the most advanced nations in the world. The country has a good transport
network, including road, rail, air, and sea. The communication system is well advanced and
according to international standards. Trade-in India offers more opportunities than challenges
making India a good nation for any company that would want to enter the market through
exports. The choice of India as an export destination is also based on cricket which is the
national sport of India. This presents a ready market for radar guns, and the company can
leverage some of its competitive advantages like price, product, and economies of scale.
References
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Bohtan, A., Vrat, P., & Vij, A. K. (2017). Supply chain of the Indian public distribution system:
a new paradigm. Journal of Advances in Management Research.
Diaconu, D., & Alpopi, C. (2014). Strengths And Weaknesses Of Current Supply Chain
Management And Initiatives For The Future.
Mallick, S., & Marques, H. (2017). Export prices, selection into exporting and market size:
Evidence from China and India. International Business Review, 26(6), 1034-1050.
Manonman, M. (2018). Pattern of Trade & Trade Advantage in Transport Equipment Industry in
India. Indian Journal of Industrial Relations, 53(3), 378–389.
https://www.jstor.org/stable/26536464
Menon, Lakshmi & Anilkumar, Anjana & Girish, Aparna. (2021). Determinants of the Exports
of India: Trade Blocs, Trade Theory, and The Gravity Model. International Journal of
Recent Advances in Multidisciplinary Topics Volume 2, Issue 6, 279-284.
Mukerjee, Kaushik. (2016). Factors That Contribute Towards Competitive Advantage: A
Conceptual Analysis. IUP Journal of Business Strategy. 13. 1-14.
World Trade Organization. (2011). India Transportation.
https://www.worldbank.org/en/news/feature/2011/09/23/india-transportation
Worldometer. (2022). India Population. https://www.worldometers.info/world-population/india-
population/#:~:text=The%20current%20population%20of%20India,of%20the%20total%
20world%20population.
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Similarity Report
45% Overall Similarity Top sources found in the following databases:
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Crossref database Crossref Posted Content database
44% Submitted Works database
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1 Zovio Inc on 2022-06-24
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9 link.springer.com
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13 Zovio Inc on 2022-06-12
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14 Zovio Inc on 2022-06-12
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15 repository.nwu.ac.za
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