Question

A company that has it’s operations in Canada, Japan, India and Kenya decides to manufacturer smart phones to take advantage of demand due to the popularity of the product among the younger generation. You have been assigned to identify the country that is best suited to establish their manufacturing plant by conducting a competitive advantage analysis based on respective factor conditions, demand conditions, related supporting industries and strategies, structures and rivalries. Make your recommendation by showing supporting argument

Answer 1

Answer:
I would prefer to open manufacturing plant for smart phones in India.
Competitive advantages analysis for the same is mentioned below:

• Factor Conditions : One of the major factor in deciding this was cheap labour that we can get in India compare to the other countries where branches are there like Canada or Japan where cost of labour is too high. Also Indian government is friendly towards Foreign Investment, they have launched a new campaign as well called "Make In India" by which they provide many benifits to the companies who wants to setup their manufacturing plant in India.
• Demand Conditions : India is 2nd largest country by population, It has population of 1.3 Billion and most of the age group is young age group in India. So there is huge market of cell phone in India. There are more than 50 cell phone companies are currently selling their product in India.
• Related Supporting Industries : India has very helpful infrastructure to develop cell phones, many companies are being setup which provides cell phone compnents in bulk and are readily available. So productrion cost would be very less due to this.
• Strategies : I would suggest to follow given below strategy to capture Indian market:
  • Getting government benifit under make in India initiative.
  • Targetting youth first in the age group of 17-29 who mostly focuses on camera picture quality and memory.
  • So i would suggest to develop mid range phone with very high quality camera which will attract youth and they will advertise on our behalf to other people.
• Structures and Rivalries : There would be multiple rivalries as there are many cell phone manufacturer in India. But most of them are not focusing on quality in favor of keeping cost low, so if we focus on quality even at bit more price, we can capture the market easily. The basic structure here is flat and Government is very helpful in providing necessary licenses to get up and going in no time.

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