what drives firms to go global-International Business.pptx

Learn about what drives firms to go global

1. what drives firms to go global

2. Factors Market Expansion and Customer Reach Diversification of Business Risk Access to New Talent and Skills Cost Reduction Access to Raw Materials and Resources Competitive Pressure Regulatory and Policy Advantages Technological Advancements

3. 1. Market Expansion and Customer Reach : Indian companies like Tata Motors and Zomato go global to access new markets, which offers them opportunities for growth beyond the domestic market. This expansion allows them to increase their customer base, achieve higher sales, and tap into markets that may have different needs or offer less competition.

4. Tata Motors : By acquiring the luxury brands Jaguar and Land Rover, Tata Motors expanded into new international markets, catering to a different segment of customers than in its domestic market. Zomato : The online food delivery service expanded beyond India to over 24 countries, tapping into the global food delivery market and reaching a wider customer base.

5. Diversification of Business Risk : Infosys and Reliance Industries, by having a presence in multiple countries, can spread their business risks. If the Indian market faces an economic downturn or sector-specific challenges, their global operations can help stabilize their overall business performance.

6. Access to New Talent and Skills : Companies like Wipro and Dr. Reddy's Laboratories benefit from a global presence by accessing a wider talent pool. This includes specialized skills and innovative ideas that may not be readily available in the Indian market, enhancing their competitive edge and innovation capabilities.

7. Wipro : Wipro hires globally, especially in its IT and consulting services, to incorporate diverse talents and skills that enhance innovation and service offerings. Dr. Reddy's Laboratories : This pharmaceutical company operates globally, gaining access to international talent pools in pharmaceutical research and development.

8. Cost Reduction : Aditya Birla Group and Sun Pharmaceuticals utilize their global presence to achieve cost efficiencies. This could be through accessing cheaper raw materials, benefiting from lower labor costs in certain regions, or optimizing their supply chain and manufacturing processes.

9. Aditya Birla Group : Through its global operations in sectors like metals, cement, and textiles, Aditya Birla Group leverages cost advantages in different markets for raw materials and production. Sun Pharmaceuticals : Sun Pharma manufactures some of its products in countries with lower production costs, allowing for competitive pricing in global markets.

10. Access to Raw Materials and Resources : Companies such as Vedanta Resources expand internationally to secure direct access to essential raw materials and resources which are crucial for their operations. This can lead to more stability in supply and potentially lower costs. It is a mining and natural resources company, operates globally to access various raw materials essential for its operations, like oil, gas, zinc, lead, and aluminum.

11. Competitive Pressure Competitive pressure refers to the challenge companies face from current and potential competitors. In a rapidly globalizing world, businesses are not only competing with local firms but also with international players. To maintain or enhance their market position, companies often look to expand into new markets For Indian companies, this pressure is particularly pronounced due to India's large and growing economy, which attracts global players.

12. Consequently, Indian companies must innovate, expand, and improve efficiency to keep up with both local and international competitors. Bharti Airtel and Mahindra & Mahindra's global expansions can be seen as strategic moves to maintain their market position. In industries where competition is intense, having a global footprint can provide new avenues for growth and reduce dependence on a single market.

13. Regulatory and Policy Advantages : For companies like Biocon and Lupin Pharmaceuticals, navigating different regulatory landscapes is a key factor. Some countries offer more favorable conditions for pharmaceuticals, whether it's in the speed of regulatory approvals, the intellectual property regime, or market access conditions. As a biopharmaceutical company, Biocon expanded its operations to markets with favorable regulatory environments for pharmaceutical products, which can differ significantly from India.

14. Lupin Pharmaceuticals : Lupin strategically entered various international markets where regulatory conditions were conducive to marketing their generic pharmaceuticals.

15. Technological Advancements : Technology companies like TCS and HCL Technologies leverage their global presence to stay at the forefront of technological advancements. Being global allows them to be part of different tech ecosystems, adopt best practices, collaborate with leading global tech firms, and serve a wider range of customer needs with advanced technological solutions. TCS (Tata Consultancy Services) : TCS leverages global technological infrastructure to provide IT services and solutions worldwide, overcoming geographical limitations.

16. HCL Technologies : By expanding globally, HCL Technologies accesses advanced technological ecosystems, enabling it to offer cutting-edge solutions to a global clientele. Watch You tube video https://youtu.be/YvwnqR4x_A8