The identification, analysis and evaluation of market entry barriers for German small and medium-sized companies in India are the objective of this bachelor thesis and will be developed within six chapters. Moreover, recommendations to minimize or overcome those barriers are provided.
Small and medium-sized companies are increasingly confronted with new issues, but also with chances due to the persistent internationalisation of the markets. New markets are not only entered to guarantee existing competitive advantages and to expand. Furthermore, companies can benefit from substantial incomes and synergy effects.
Entering new markets harbour different risks whereupon the market environment such as customers, products, competitors as well as fiscal and legal conditions needs to be analysed. In comparison to large concerns, small and medium-sized companies are facing issues of less financial and human resources, absent experience abroad, the ignorance of the respective national language and costs for the international market development. On the other hand, small and medium-sized companies are using individual manufacturing processes or design niche products to compete in international markets.
India is characterized by its huge complexity of different races, languages, caste and religions as well as of its ancient cultural and social history. Detailed knowledge about the Indian culture and market is required to increase the success when entering the Indian market. The provided overview of those conditions is necessary to understand the characteristics of the Indian market and to consider this knowledge in daily business operations.
The topic “market entry” is covered in numerous reference books and studies about the market entry in India can also be found. These studies are discussing the market entry of big companies such as of Siemens AG and Robert Bosch GmbH in India, but issues of small and medium-sized companies are neglected. This academic void is closed by this bachelor thesis with the help of the implementation of questionnaires and interviews. Based on these primary sources, market entry barriers for German small and medium-sized companies in India are identified as well as analyzed and recommendations to reduce or even overcome them are presented.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Problem description and objectives
- Scope of work
- Terminologies
- Definition of small and medium-sized companies
- Market entry barriers
- Definition of market entry barriers
- Classification of market entry barriers
- Analysis of the market environment
- Economic conditions
- Economic reforms since 1991 and India's actual economic structure
- Foreign Direct Investment (FDI) and German-Indian relationship
- Political and legal conditions
- Socio-cultural conditions
- Methodologies
- Quantitative and qualitative research methods
- Methods of collecting data
- Question types
- Designing and dispatching of the questionnaire
- Practical implementation of interviews
- Data analysis and quality criteria
- Market entry barriers in India
- Tariff barriers
- Tariff barriers for foreign investors in India
- Tariff barriers for German small and medium-sized companies
- Non-tariff barriers
- Impediments resulting from India's high bureaucracy
- Import regulations and permitted economic sectors for FDI's
- Impediments resulting from the Indian law
- Non-tariff barriers for German small and medium-sized companies
- Market-related barriers
- Impediments resulting from India's infrastructure in relation of transport, communication and estate
- Impediments resulting from water and electricity supply
- Impediments concerning the Indian labour market
- Impediments resulting from climatic and environmental conditions
- Impediments resulting from corruption
- India's worldwide reputation and Germany's image in India
- Market-related barriers for German small and medium-sized companies
- Company-related barriers
- Impediments concerning the personnel recruitment and human resource management
- Impediments resulting from the collaboration with other companies and from the quality of customers
- Impediments concerning the marketing mix
- Company-related barriers for German small and medium-sized companies
- Recommendations, success factors and key challenges for German small and medium-sized companies in India
- Market entry barriers for German SMEs in India
- Analysis of the Indian market environment
- Impact of economic, political, legal, and socio-cultural factors
- Challenges related to infrastructure, labor market, and business environment
- Recommendations for successful market entry and key success factors for German SMEs
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis aims to analyze the challenges faced by German small and medium-sized companies (SMEs) when entering the Indian market. It investigates the specific barriers encountered during the market entry process, focusing on economic, political, legal, socio-cultural, and company-related factors. The study also delves into the impact of India's infrastructure, labor market, and business environment on German SMEs.
Zusammenfassung der Kapitel (Chapter Summaries)
The thesis begins by defining the scope and objectives of the research, establishing the context for analyzing market entry barriers for German SMEs in India. Chapter 2 provides a detailed explanation of relevant terminologies, including definitions of SMEs and market entry barriers, laying the foundation for subsequent analysis. Chapter 3 dives into the analysis of the Indian market environment, examining its economic, political, legal, and socio-cultural conditions. It explores the impact of India's economic reforms, foreign direct investment (FDI) trends, and the country's overall business environment on German SMEs. Chapter 4 focuses on the methodologies used for data collection and analysis, detailing the research methods, question types, and the process of questionnaire design and dispatching. It also explains the implementation of interviews and the criteria used for data analysis.
Schlüsselwörter (Keywords)
Market entry barriers, German SMEs, India, market environment, economic conditions, political and legal framework, socio-cultural factors, infrastructure, labor market, FDI, tariffs, non-tariff barriers, research methodology, data analysis, recommendations, success factors, challenges.
- Quote paper
- Diana Bednarek (Author), 2012, Market entry barriers for German small and medium-sized companies in India, Munich, GRIN Verlag, https://www.grin.com/document/212145
