Post liberalisation, MNCs gatecrashed without the due diligence
Liberalisation seemed godsend for numerous multinationals that were waiting since ages to tap the lucrative Indian market. They were extremely confident that their global strategies would work wonders in India as well. Some, out of their desperation, could hardly wait for the right Indian partner. The result?!? A woeful saga of strategic blunders, which shocked them to the roots one by one. Consider some examples.
US-based watch company Timex, which jumped into the Indian market within one year of liberalisation, tied up with Tata’s Titan, but faced issues from the word go. Titan wanted Timex to grow under their umbrella. “Titan was interested only in our technology and we found that we need to have our own strong brand positioning, which was difficult to achieve with Titan. We were totally in the wrong place,” explains Kapil Kapoor, Senior VP, Asia Pacific, Timex Corporation. Finally in 1998, Timex bid adieu to the Tatas and decided to go ahead on its own. Similarly, US-based consumer durable major Whirlpool felt the need to break free from the shackles of TVS. The Whirlpool-TVS tie-up was a mismatch, as being a primarily electronic company, TVS could not match standards with the home appliances business of Whirlpool.
Liberalisation seemed godsend for numerous multinationals that were waiting since ages to tap the lucrative Indian market. They were extremely confident that their global strategies would work wonders in India as well. Some, out of their desperation, could hardly wait for the right Indian partner. The result?!? A woeful saga of strategic blunders, which shocked them to the roots one by one. Consider some examples.
US-based watch company Timex, which jumped into the Indian market within one year of liberalisation, tied up with Tata’s Titan, but faced issues from the word go. Titan wanted Timex to grow under their umbrella. “Titan was interested only in our technology and we found that we need to have our own strong brand positioning, which was difficult to achieve with Titan. We were totally in the wrong place,” explains Kapil Kapoor, Senior VP, Asia Pacific, Timex Corporation. Finally in 1998, Timex bid adieu to the Tatas and decided to go ahead on its own. Similarly, US-based consumer durable major Whirlpool felt the need to break free from the shackles of TVS. The Whirlpool-TVS tie-up was a mismatch, as being a primarily electronic company, TVS could not match standards with the home appliances business of Whirlpool.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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