The success of MNCs entering into a country lies in their clear vision and well-planned strategy. It is important that they understand the preferences and lifestyles of the local consumers to be sucessful in the local market. MNCs also require continuous support from the parent organization, which will enable them to bring in the best practices across the world to the local management. With the arrival of MNC brands, Indian consumers have become more brand conscious. They now spend enough time to acquire knowledge about a brand. Though consumers in India are price driven, MNC brands have persuaded them to give value for money.

Well established companies across the globe were forced to move outside their national boundaries not only for growth but also because of market saturation in their respective home countries, search for cost-effective resources and emerging competitive advantage of nations. They transformed into MNCs (Multi National Corporations) and operated in different nations. But entry into other nations was not a cakewalk for these companies. Barriers like high import duty, licensing, protest from domestic companies and other rules and regulations made it difficult for foreign companies to enter other nations. In early 1990s, many foreign firms started their operations in India as Government of India liberalized its economic policies. After the entry of MNCs the lifestyle of Indian consumers changed remarkably. There was a change in consumer taste, living pattern, buying behavior, etc. With the arrival of MNC brands, Indian consumers have become more brand conscious. They spend enough time to acquire knowledge about the brand and its utility. Though consumers in India are price driven, MNC brands have persuaded them to give value for money.

According to Management Guru, C K Prahalad, doing business in developing countries requires radical innovation in technology and business models. He emphasizes that MNCs need to reevaluate price performance relationships for products and services. MNCs will be forced to transform their understanding of scale; from a "bigger is better" ideal to an ideal of highly distributed small-scale operations married to world-scale capabilities.

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