GNIMS Electronics MNC's

8/4/2019 GNIMS Electronics MNC's

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Md. Safir Ahmad 01

Sunil Balmiki 03

Nitin Dalvi 05

Mahesh Gupta 09

Prasad Padwal 19


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Index Five Electronic MNCs in India

History

Products

Pricing Distribution

Communication & Marketing Strategy

Legal Issue

Government Regulation Differentiation Between

MNC Closing / Reducing / Filling Gap


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Why MNC is in India ? There are a number of reasons why the MNC are coming down to

India. India has got a huge market it has also got one of thefastest growing economic in the world. Besides the policy of theGovt towards FDI has also played the Major Role in attractingthe MNC in India.

For quite a long time, India had restrictive policy in terms ofFDI.As a result their was a lesser no of Company that showninterest in investing in Indian Market.

However, the scenario changed during the financialliberalization of the Country , specially after 1991.

Govt, now a days makes continuous efforts to attract foreigninvestments by relaxing many of its policies. As a results anumber of MNC have shown interest in Indian Market.


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History

Company

EstablishedYears

1946 1910 1938 1979 1958

Location Japan Japan SouthKorea

India SouthKorea

FounderMasaruIbukaand

AkioMorita

NamiheiOdaira

Lee Byung -chull

NandlalMadhavlal

Dhoot

Koo Bon-Joon

In India 1994 2005 1995 1979 1997

Slogan Makebelieve

Inspire theNext

Digitallyyours

Experiencechange

Lifes Good


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Product

Company

Television/Audio/Video Y Y Y Y Y

Mobile Phones Y Y Y Y Y

Gaming Consoles Y N N N N

Computers Product Y N Y N Y

Tablet Y N Y N N

Home Appliances N Y Y Y Y

Air Conditioning N Y Y Y Y

Camera/Cam Coder Y Y Y N N


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Pricing(Budget Up to 50K)

(In Thousand)

Company

LCD 32 27-37 38-46 23-40 19-22 19-42

Plasma 32 N N N N 30

LED 32 37-45 N 33-47 26-28 30-4o

Survey done in Vijay Sales, NEXT, Croma, Sony Mony & Kohinoor Electronics.


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Distribution

Company

Company toShowroom toCustomer.

Y N Y N N

Company toDistributor toRetailer to

Customer.

Y Y Y Y Y


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Communication & Marketing Strategy

Successful Communication in international Businessenvironment requires not only an understanding oflanguage, but also non verbal aspects ofcommunication that are the part of the Community.

All Company use Promotion Mix include such as:-

Advertising

Personal Selling Sales Promotion

Direct Marketing

Publicity


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Cont..

Sony:- Sony India will spend Rs 200 crore in this financial year onadvertising and promotion (Promotional Budget) of the entire range ofconsumer electronics, out of which Rs 60 crore will be spent only on digitalimaging products.

Hitachi:- Reducing CO2 Emissions through Products and ServicesOur long-term plan "Environmental Vision 2025", which we started inDecember 2007, sets out our goal of helping to reduce CO2 emissions by100 million tons a year by 2025

Videocon:- Multi-Branding Strategy of Videocon Industries(Korean Company- Toshiba and Sansui)

They also pointed to VI's large production capacity, which meant that ithad to have a large sales volume in order to utilize its production capacityto the fullest and remain cost-effective.


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Cont..

LG:- LG believed in holding the interest of its customers by bringingout new products regularly. Before developing products, LG conductedmarket research to ensure that its products met local requirements.

Samsung:-Analysts felt that the wide product range of Samsung wasone of main reasons for its success in the Indian market. Samsungpositioned itself on the technology platform.


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Legal Issueo Govt. Norms

o Govt. Duties

o Manufacturing Plant in Indiao Services Issue

oAll Logo, Trademark, copyrights belonging to MNCwhich licensed user of logo, trademark and copyrights

of MNC in India.


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Legal Issue

Professor Philip Blumberg suggests two different approaches toresolve the choice of law questions associated with MNCs: the"entity" approach and the "enterprise" approach.

Entity Approach : Each country in which an MNC operates would apply its own lawexclusive to a particular unit of the MNC doing business within thecountry's territory.

For example, if an MNC has a parent corporation in the homecountry and subsidiaries in the host country, each country applies

its law to the corporation incorporated under its laws and not theothers.

Enterprise Approach : Enterprise approach is an minority approach, in which a single rule

of law would apply to the entire MNC.


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Key Factors work in Local Market Customizing to a local needs

Devising innovative business models that overcomelocal challenges

Leveraging latest technologies

Benefiting from low cost labour and overcomingshortages of skilled labour.

Eg. China, MNCs like sony faced a fundamentalobstacle to video gaming, i.e. Piracy.Local Market sale increased $ 16 mn in 2005 to $ 600mn in 2006.


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MNC VS INDIAN COMPANY Initiating a high level of investment.

Reducing the Technological gap.

The Natural resources are Utilized in true sense. The Foreign exchange gap is reduced

Boosts up the basic economic structure.

Indian retail industry worth more than $ 230 bn in

2005 is growing at CAGR of 6% and is expected totouch $340 bn in 2011.


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MNC Closing/ Reducing/Filling Gap MNC are such companies or institutions that meet out the

services and the productions to many countries and thereinstitutions. They serves the customers and the institution bestand simultaneously the magnetic chemistry between the country

and the foreign MNCs has shown some fruitful results too. These are not the sole prior causes of the MNCs moves on to

flourish in India. As the basic economic data suggest that afterthe Liberalization in 1991, it has brought in hosts of foreigncompanies in India and the share of U.S shows the highest. Theyaccount about 37% of the turnover from to 20 companies that

function in India. They are well flourishing and earning there share of maximum

profit too.


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GNIMS Electronics MNC's

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