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Managing Multinational Enterprise : Ibm

In: Business and Management

Submitted By viveksahay
Words 7107
Pages 29
IBM’s International Assignment in India

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Executive Summary
Despite years of war and economic setbacks, India has emerged as one of the world’s most promising emerging markets. Many international firms have sought to gain a foothold in India for two reasons. One reason is to target a massive market with the fourth largest purchasing power in the world, and another is to utilize a seemingly abundant supply of low cost yet skilled English speaking labor. IBM is one of these companies and has seen great success in India in the past decades. IBM’s Indian subsidiary now earns 30% of the company’s total revenue, but recent changes in both India and IBM present a new set of challenges for the company’s continued presence in India. This paper seeks to identify these challenges and offer potential solutions to how IBM can continue to grow their highly profitable operations in India.

Vivek Sahay
Roni Sims
Hank Scurry
Nidhi Prakash
Spoorthi Purumala

India Overview

With the world’s fourth largest GDP in purchasing power parity and second largest population base, India has been a popular market in the past two decades, particularly in the IT sector. The country has undergone a lot of growth in the past century. After becoming independent from British rule in 1947, the subcontinent underwent a period of violence, including two wars with Pakistan and one with China. The last war ended in 1971; however, tensions with both the countries remain high. Notably all the three countries in the subcontinent are nuclear capable as well. Economic reforms in 1991 have spurred a great deal of investment in India. Economic growth slowed in 2011 caused by inflation, high interest rates and general concern over the government’s commitment to economic reform. Recent reform measures have restored some growth in the country, but investors remain…...

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