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Primary Question: Regarding M.A.N is producing trucks, is the Indian market an opportunity to increase sales ? Secondary Question: Would a subsidiary in India be the suitable entry strategy for MAN ?
Today’s Agenda Introduction to M.A.N India’s Potential: construction-/ transportation- industry India’s Problems Subsidiary Solution for M.A.N
Commercial Vehicles  Power Engineering
History
€ 14,945,000,000 € 11,208,000,000
Employees of MAN 48.621
India’s Potential
GDP 2009 6,5% -2,4% GDP INDIA GDP USA
GDP 2007 9,0% Transport 5,5% 2,1% GDP INDIA GDP USA
54,4 60,9 2,7 3,1 25,2 22,3 29,4 32,6
60,9 bil. Euro 22,4 bil. Euro investedintoIndia‘sConstructionIndustry in 07/08 will begiventoGreeceuntil 2012 by Germany
India’s Struggle
50% Asphalt roads in Inda:
90% ofstreets in Indiacannotbeusedby Trucks.
2Days will ittaketodrive 1500 km with a truck in Germany. 5Days for a truck in India.
4000 km 3300 km 5846 km
Forbes Magazine: “We need $500 billion of investment in the next five years for roads, power, airports, railways.” Handelsblatt: „Projekte über 55 Mrd. Euro will Indien ausschreiben, um pro Jahr rund 7000 km an neuen Fernstraßen zu bauen.“ FAZ: „Erste Schätzungen haben ergeben, dass wir unsere Ausgaben für Infrastruktur auf eine Billion Dollar für fünf Jahre aufstocken müssen.“
Subsidiary
Subsidiary  Transport  Tariff barriers Government  Knowledge transfer  Delivery  Labour costs
Subsidiary Cultural differences Communication Political differences Acceptance in India Money
Solution for M.A.N Subsidiary
References: Bahree, M. (2009). Ambassador: Indian Economy Will Grow. Forbes Magazine. Boris, A. (2010). Indien – Bauwirtschaft (Hochbau/Gebäudebau), Branche kompakt, p. 1. Die MAN. Eine deutsche Industriegeschichte. C.H. Beck, München 2008. Doole, I; Lowe, R. (1994). International Marketing Strategy, Analysis, development and implementation. London: Thomson. Hauschild, H. (2010). Indien wirbt um Mega-Investitionen. Handelsblatt. Hein, C. (2010). 1000 Milliarden Dollar für Straßen und Strom. Frankfurter Allgemeine Zeitung.  Interim-Report, Operating Profit in linewithexpectations in a difficultmarketenvironment, cost-cuttingmeasurestakeeffect. 30. September 2009 National Highways Authority OfIndia, Ministryof Road Transport & Highway GovernmentofIndia. NHAI Phase I&II map, NHAI Phase IIIA map, NHAI Phase IIIB map.  Schäfers, M. (2010). Kabinett beschließt Griechenland-Hilfe. Frankfurter Allgemeine Zeitung.  U.S. Central Intelligence Agency (2010). Economy – overview. Washington.  World Bank (2010). India Transport Sector.  250 Jahre MAN: 1808 - Aus dreiHüttenwird die Hüttengemwerkschaft 250 Jahre MAN: 1898 - Entstehung der M.A.N.

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Market Entry Strategy for M.A.N

  • 1. Primary Question: Regarding M.A.N is producing trucks, is the Indian market an opportunity to increase sales ? Secondary Question: Would a subsidiary in India be the suitable entry strategy for MAN ?
  • 2. Today’s Agenda Introduction to M.A.N India’s Potential: construction-/ transportation- industry India’s Problems Subsidiary Solution for M.A.N
  • 3. Commercial Vehicles Power Engineering
  • 5. € 14,945,000,000 € 11,208,000,000
  • 8. GDP 2009 6,5% -2,4% GDP INDIA GDP USA
  • 9. GDP 2007 9,0% Transport 5,5% 2,1% GDP INDIA GDP USA
  • 10.
  • 11. 54,4 60,9 2,7 3,1 25,2 22,3 29,4 32,6
  • 12. 60,9 bil. Euro 22,4 bil. Euro investedintoIndia‘sConstructionIndustry in 07/08 will begiventoGreeceuntil 2012 by Germany
  • 14. 50% Asphalt roads in Inda:
  • 15. 90% ofstreets in Indiacannotbeusedby Trucks.
  • 16. 2Days will ittaketodrive 1500 km with a truck in Germany. 5Days for a truck in India.
  • 17. 4000 km 3300 km 5846 km
  • 18. Forbes Magazine: “We need $500 billion of investment in the next five years for roads, power, airports, railways.” Handelsblatt: „Projekte über 55 Mrd. Euro will Indien ausschreiben, um pro Jahr rund 7000 km an neuen Fernstraßen zu bauen.“ FAZ: „Erste Schätzungen haben ergeben, dass wir unsere Ausgaben für Infrastruktur auf eine Billion Dollar für fünf Jahre aufstocken müssen.“
  • 20. Subsidiary Transport Tariff barriers Government Knowledge transfer Delivery Labour costs
  • 21. Subsidiary Cultural differences Communication Political differences Acceptance in India Money
  • 22. Solution for M.A.N Subsidiary
  • 23. References: Bahree, M. (2009). Ambassador: Indian Economy Will Grow. Forbes Magazine. Boris, A. (2010). Indien – Bauwirtschaft (Hochbau/Gebäudebau), Branche kompakt, p. 1. Die MAN. Eine deutsche Industriegeschichte. C.H. Beck, München 2008. Doole, I; Lowe, R. (1994). International Marketing Strategy, Analysis, development and implementation. London: Thomson. Hauschild, H. (2010). Indien wirbt um Mega-Investitionen. Handelsblatt. Hein, C. (2010). 1000 Milliarden Dollar für Straßen und Strom. Frankfurter Allgemeine Zeitung. Interim-Report, Operating Profit in linewithexpectations in a difficultmarketenvironment, cost-cuttingmeasurestakeeffect. 30. September 2009 National Highways Authority OfIndia, Ministryof Road Transport & Highway GovernmentofIndia. NHAI Phase I&II map, NHAI Phase IIIA map, NHAI Phase IIIB map. Schäfers, M. (2010). Kabinett beschließt Griechenland-Hilfe. Frankfurter Allgemeine Zeitung. U.S. Central Intelligence Agency (2010). Economy – overview. Washington. World Bank (2010). India Transport Sector. 250 Jahre MAN: 1808 - Aus dreiHüttenwird die Hüttengemwerkschaft 250 Jahre MAN: 1898 - Entstehung der M.A.N.