Siemens' association with India goes back to 1867, when it played a key role in laying 11,000 Kms. long Indo-European telegraph line from London to Kolkata. Since then, it has been contributing in many ways in the countr

CS Professional · International Business – Laws and Practices · PYQS · June 2016
Siemens' association with India goes back to 1867, when it played a key role in laying 11,000 Kms. long Indo-European telegraph line from London to Kolkata. Since then, it has been contributing in many ways in the country's growth story. Now it is looking at playing an active role in the government's 'smart city' project. Indicate few opportunities and threats that the company should consider.

Answer & Explanation:

Opportunities The Government of India has a clear vision and road map for the economic reforms. India is having a stable government; this project is a dream project of the present government at the centre. Siemens India has a long history of associating with Indian market and has a good understanding of the nature of Indian Economy. The share of manufacturing in India's GDP is likely to grow manifold in the coming years. India is a big market for FDI investors. There is a big consumer class in India and a strong potential future growth. There is availability of young and skilled work force making it lucrative to make in India. Threats Siemens is not the only driver in the smart city project. Competitors from Germany, France, Japan, South Korea, China, etc have also expressed their interest on the project. The quality Control and supply chain management system is not effective in existing Indian cities. Many Indian Cities are not having potential to expand territory. Lack of integrated industry approach in India. The political environment in India with an increase of regional political forces poses a threat for sustainable smooth operation

Topics: International Business Strategy

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