The
recent years had witnessed the growth of Indian corporations
going global due to favorable government policies and
performing well enough by nurturing human resources
to challenge their international business rivals. As
a result of this, suddenly global multinational organizations
who had started their ventures in the Indian arena found
the competition to be quite intense, tough and challenging.
The growing strengths of the Indian MNCs and their strong
brand identity in the global arena has made the situation
more and more difficult for new entrants and existing
foreign MNCs to retain their competitiveness in the
Indian arena. The case depicts the turbulence and challenges
faced by such a foreign multinational, RM Electronics,
in its venture to consolidate and establish its presence
on the Indian soil.
With the economy booming and business opportunities abounding, Indian corporations with vision and ambition are on the fast track to growth (Ayyagary, 2007). In recent years, with more and more Indian companies going global, it has been quite a role reversal for the Indian organizations making their presence outside national borders. This can be illustrated by the fact, that India is demanding countries like the US and Singapore to open their markets to Indian investors. This curious situation could soon come to a head, as in the case of the banking sector where many Indian bankers have challenged that the country should close its banking markets to US and Singaporean investors unless Indian banks are given greater access to their markets (Mohan, 2007). This perhaps is not the only threat pertaining to the banking sector, foreign multinationals from various sectors are feeling the heat by the presence of and takeovers by Indian multinationals. |
