1. INTERNTIONALISATION OF
1
(PARTICULARLY IN INDIA)
AS THE TARGET MARKET
A presentation submitted in part requirement for the award of
MBA (FINANCE) 2013/14
Presented to Dr. Hulya Oztel (Supervisor) & Mr. Pritesh Madlani
By John Fernandes [Masters in law]
Module Code: LBPG5002
Date of Presentation: 3rd
October, 2014

2. 2
OUTLINE
 Objectives to be achieved
- Expand globally (India being the target market)
- Administering cost effective methods for marketing &
distribution
 Organisations background
 Market analysis of LED products & its competitors
 Porter’s five forces analysis
 PESTLE & SWOT analysis of India as a market
 Critical success factors
 Capability and Resources
 Four actions frame work
 Strategies ▪ Short term
 Strategies ▪ Long term
 Feasibility & Suitability
 Conclusion

3. 3
Organisations background
 UK based company, incorporated on 20th
November, 2012.
 Hasled indicates dealing with LED lighting, locally.
 HA-represent s, ‘Home Automation’, S-represents ‘Solar’ and LED-
Lighting Emitting Diodes.
 Main objective ‘Whole seller’.
 Main stake holders
- Retailers through Direct marketing (John Lewis)
- Virtual merchants (Amazon.com) through E-marketing & E-commerce.

4. Market analysis of LED products & its competitors
4
The Industry Life Cycle
C
Introduction
Time
Growth DeclineMaturity
Incandescent lighting Fluorescent lighting LED lighting
Source: Adapted from (Obembe, 2014, p4)
Global lighting industry has to offer 80% of its market share to LED lighting industry

5. 5
LED vs. CF vs. Incandescent
Source: Davidson, K. (2014)

6. Porter’s five forces analysis
6
INDUSTRY RIVALRY FOR LED LIGHTING: - (low)
Competitors like Philips, Toshiba, Sharp etc., and local brands
It has to offer 80% market share of the global lighting industry
BARGAINING POWER OF BUYERS: - (low)
Price sensitivity (few manufacturers)
Less differentiated products
BARGAINING POWER OF SUPPLIERS: - (high)
Less differentiated products (more demand less supply)
Investments in marketing and distribution will raise product cost
Long term and exclusive dealing contracts
COMPETITION FROM SUBSTITUTE - (high)
Product cost
Product awareness is low
THREATS OF NEW ENTRANTS:- (high)
Nascent industry
Does not require very high investment (for distribution)
Global demand for the products

7. PESTLE & SWOT analysis of India as a market
7
TSTRENGTHS
• Young with population with growing disposable
income ( 50% under 25 years & 70% below 36 years)
• Availability of products, raw materials and human
resources (GATT in about 1990s)
• Huge demand for diverse products and changing
lifestyle
PESTLE
• Favourable political conditions
(IKEA in Telangana, India)
• Second largest emerging
economy after China (1.3 billion)
• Growing need for technology
• Advancement in laws and
regulation (Contract Law)
• Need for eco-efficiency
• Demand for energy efficient
products due to high energy
prices (reduce world energy
consumption by 50%)
• Lack of access to electricity (40%
of the villages have almost no
electricity)
OPPORTUNITIES
• Rising income of the middle
class (14 states in HIS)
• Investment opportunities
(FDI-100%)
• Rapidly changing socio –
economic lifestyle (rural high
& middle income to grow by
60m)
• Rising organised retail
market (10%)
THREATS
• Delay in implementation
of policies (FDI)
• Lack of products and
brand awareness
• Rising grey market
activities (JCB)
• Lower literacy in rural
and semi- urban areas
WEAKNESS
• Lacking in infrastructure facilities (IMF)
• Undeveloped rural market
• Neglected manufacturing sector (13 m)
•

8. Capability and Resources (Hasled)
8
Source: Adapted from (Johnson, et. al., 2011)

9. Critical success factors
9

10. Four actions frame work
10
Price
Brand, Slogan for
promotion and
alliances
Finance
Distribution
Rights of
Manufacturers
Source: Kim, W.C. and Mauborgane, R. (2005, p114)

11. Strategies ▪ Short term
11
ORGANISED RETAIL SECTOR (10%)
 Registered Trade MarkRegistered Trade Mark
 Partnering with e-commerce websites (Flipkart.com, junglee.com, eBay.in)
 Approaching under construction building societies (Manu Realty)
 Partnering with agents, interior decorators, event managers, suppliers, lighting
contractors etc.
 Demos to be displayed in schools, universities, residential societies, hotels,
restaurants, hospitals, business houses etc.
UN-ORGANISED RETAIL SECTOR (90%)
 Merchant communities (Banias, Marwaries, Khatris and Parsis)
- targeting the lower middle class

12.  SloganSlogan
 Exclusive distribution rightsExclusive distribution rights
 Raise financeRaise finance
 Potential business partner with capabilities and resourcesPotential business partner with capabilities and resources having relatedhaving related
diversification parenting advantage (Manugraph)diversification parenting advantage (Manugraph) for providingfor providing
- Global network (including India) for marketing and distributing its products- Global network (including India) for marketing and distributing its products
- Infrastructure for manufacturing products on a large scale basis- Infrastructure for manufacturing products on a large scale basis
- Develop new products by investing in R&D- Develop new products by investing in R&D
Strategies ▪ Long term
12

13. Feasibility , Acceptability & Suitability
13
 Low competition (to gain 80% of the global lighting market industry)
Hasled’s knowledge in LED products
 Hasled’s acquaintances with the LED manufacturers
 The goodwill earned by Hasled through its retailers
 Hasled’s products are affordable and suitable for the middle class in India
 Rising demand for LED products in India ($30 billion investment in green buildings)
 Multiple usages of the LED products (health, education, street, housing, agriculture)
 India need to bring lighting to its villages (40% without electricity)
 Demand of energy efficient products to reduce energy prices (A/C & Refrigerators by
65% and 30% in other consumer products)

14. Conclusion
14
 Right time to expand globally (particularly India)
- Political stability (Stable government & economic development)
- Advancement in laws (FDI-100%, Contract labour, Customs duty etc)
- Huge domestic consumption (rural middle and high income to grow by 60m, 5
times more than its urban counter part )
- Opportunities for investing in R&D for LED products (Intel India $2 billion ,
“Do –it yourself “Maker” culture)
- Drastic need for reducing greenhouse gases and high energy prices
- growing middle class with high disposable income (14 states in HIS list)
- Urgent need for development in infrastructure facilities (Recession)
- encouraging manufacturing “Make in India” project
- Availability of resources

15. 15
“ As Businesses quest towards creating synergy,
Strategy's quest in creating value ”