Entering successfull the Indian market: Recommendations and challenges for German small and medium-sized companies
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Diana Bednarek
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Entering successfull the Indian market: Recommendations and challenges for German small and medium-sized companies
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Anchor Academic Publishing
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9783954896233
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1
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CHF 31.70
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Wirtschaft
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English
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166
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kein Kopierschutz/DRM
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PC/MAC/eReader/Tablet
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PDF
The objective of this study is to identify, to analyse, and to evaluate the market entry barriers for German small and medium-sized companies in India. Moreover, this study provides recommendations in order to minimize or overcome those barriers. Existing studies are discussing the market entry of big companies such as of Siemens AG and Robert Bosch GmbH in India, but issues of small and medium-sized companies are neglected. This academic void is closed by this study with the help of the implementation of questionnaires and interviews. Based on these primary sources, market entry barriers for German small and medium-sized companies in India are identified as well as analysed, and recommendations to reduce or even overcome them are presented.
Diana Bednarek was born in Berlin in 1983. In 2012, the author has successfully completed her Bachelor of Arts degree in International Management. During her studies, the author collected extensive practical experience in consultancy companies. Fascinated
Text Sample: Chapter 3.2, Political and legal conditions: The republic India is characterized by its stable parliamentary democracy for more than 60 years. India is a union consisting of 28 federal states and seven union-territories with New Delhi as its capital city. India is a secular democracy India and is marked by the freedom of religion as a constitutional right and India is generally characterized by its religious peaceful co-existence. The federal states are autonomic to a large extent as they are responsible for diverse reforms, education and health. In various federal states different regulations are in effect in regard of taxes, custom duties, religious prescriptions, alcohol and so one thus crossing of frontiers can result in unexpected border controls. As a former British colony, the British law, in particular the Common-Law-Tradition has a huge impact on India. Especially the business and the corporate law are comparable to the British, even though an independent development can be recognized. However, the Indian court system is complicated and in particular slow due to the persistent capacity overload. In addition, foreign judgments are often disclaimed thus foreign investors attempt to clarify conflicts in front of foreign arbitration courts. In principle, the free choice of law and arbitration clauses is accepted whereupon arbitration proceedings can last between one and three years. The Indian contract law complies with the Payroll Evidence Rule thus the whole tenor should be written down when contracts are designed otherwise important terms of contracts are not stipulated. For instance, this should be considered in regard of the discretion about trade secrets which are not automatically protected by the Indian law. A signed contract is occasionally seen as a description of a current state and can be discussed if conditions are changing. In general, Indian business partners abide by contracts and the risk of litigation is comparable to other Asian countries. In the conflict with Pakistan about the Indian federal states Jammu and Kashmir in the northern Himalaya which is claimed by both states, the so-called Line of Control between Pakistan and India is unacknowledged by both governments as a border but accepted as a zone of ceasefire. These conflicts led to numerous terrorist attacks especially in metropolis such as in New Delhi and Mumbai whereupon several hundreds Indians died. In 2010, rebellions claimed more than 100 deaths in Kashmir. In spite of interventions of the United Nations a lasting conflict resolution could not been implemented resulting in more than 60 years of enduring conflicts and three Indian-Pakistan wars. Peace processes are required to increase the Indian domestic and international security. 3.3, Socio-cultural conditions: India with a population of 1.170.900 million inhabitants possesses a vast cultural as well as religious diversity and a linguistic variety with Hindi and English as national languages besides 21 further constitutionally recognized languages. English is spoken by ten per cent and Hindi by 36 per cent of the Indians thus the communication between people from different federal states is complicated. Nevertheless, English is the official language of the economy and is taught in universities. Cultural aspects profoundly influence a plenty of organizational, social, religious as well as familiar facets in India. Normally, hierarchies are fixed and lines of activities are clearly defined. Thus employees handle according to their duties whereupon inter-divisional requirements are often disregarded. On the other hand, the impact on cultural system is decreasing due to economic reforms, modern communication technologies and the globalization. India is dominated by eight different religions whereupon the Hinduism is the most popular with a share of about 80 per cent. The Hinduism is characterized by the caste system and dominates the Indian social order. According to the Hinduism each person belongs to a specific caste whereupon the affiliation is inherent and unchangeable. Thus the social status of each Indian depends on the appropriate caste whereupon each area of life is affected. Their current personality is a result of previous behaviours and thus fewer exertions are concentrated on improving one's present situation. Additionally, a collective goal of a family is often more important than individual objectives. In general, members of lower castes are economically worse off than people of upper
Entering successfull the Indian market
1
Contents
3
List of abbreviations
5
1. Introduction
7
1.1. Problem description and objectives
8
1.2. Scope of work
9
2. Terminologies
10
2.1. Definition of small and medium-sized companies
10
2.2. Market entry barriers
11
3. Analysis of the market environment
15
3.1. Economic conditions
15
3.2. Political and legal conditions
19
3.3. Socio-cultural conditions
21
4. Methodologies
25
4.1. Quantitative and qualitative research methods
25
4.2. Methods of collecting data
26
4.3. Question types
27
4.4. Designing and dispatching of the questionnaire
28
4.5. Practical implementation of interviews
30
4.6. Data analysis and quality criteria
31
5. Market entry barriers in India
34
5.1. Tariff barriers
34
5.2. Non-tariff barriers
38
5.3. Market-related barriers
45
5.4. Company-related barriers
57
5.5. Recommendations, success factors and key challenges for German small and medium-sized companies in India
67
6. Conclusion
71
6.1. Target achievement
71
6.2 Prospects
72
Index of appendixes
74
Appendix 1) Designed questionnaire
75
Appendix 2) Questionnaire evaluation
83
Appendix 3) Interviews
119
Bibliography
159
