International Business Assignment - JR Group
Added on - 21 Apr 2020
Running Head: International BusinessInternational Business
International Business1Summary of JR Group expansion in Mumbai, IndiaThe presentation is based on the expansion of the business, the CEO of the company JR Groupdecided to expand product the business in India. The first railroad in Japan was built by theBritish engineers who took place in 1872, between the Tokyo and Yokohama. JR maintains anationwide railway network; the passengers may travel across the various JR companies withoutswitching the trains and without purchasing the different tickets (Encyclopedia Britannica,2017). Japan railways group is willing to expand the product super-fast japan bullet train. Thestrategy is formed by the CEO so that they won’t face any problem while establishing the outletsin India. The CEO finds that India is the best place where they can expand the business becauseIndia is the most populated country with the population of 1,324,171,354. The 50% of thepopulation of India consists of below the age of 25 and more than 65% people are below the ageof 35. In the near future, the population of the country is definitely going to show a hike. Indiaincludes more than 2,000 ethnic groups; these groups represent different religions in the country(World Population Review, 2017).The demographics of the country shows the increasing population along with that it shows theincrease in the opportunity of the country for the super-fast bullet train. India is developing acountry and this is the reason the Japan can think for the development of the bullet train in India.The country consists of many markets but out of these markets, the market of Mumbai is bestsuited for the company. Mumbai is well-known place metropolitan and it is determined as thebest potential market for the company (Thomas, 2014). Mumbai is the capital city of India, withthe most population of 18.4 million. The population of the country is increasing day by day somore and more will travel in the bullet train.
International Business2The JR Group will face some of the challenges that can affect the future expansion of the countryin Mumbai, India. Some of the challenges are discussed below:-Land Acquisition- The land acquisition will take place in Mumbai for making the way forthe bullet train. The land will be required for putting the tracks for the bullet train and forestablishing the railway stations. This will reduce the space for the road transportation.The acquisition of land is one of the crucial challenges that are faced by the company(Business Today, 2017).Substitute products- The route which is going to form the bullet train is Mumbai-Ahmedabad. There will be a direct bullet train, for that the customers might take flightinstead of train (Chandorkar, 2017). This can substitute the product of the company, apartfrom it the company is looking to expand the business so that they can earn more of theprofit. The company will keep the fare high for the traveling in bullet train; this mightreduce the frequency of the customers for the bullet train. This reduction in the frequencyof the customers will also create an impact on the profitability of the company (Dutta,2017).Lack of Human resource development- The Company will check the skills andknowledge available in the human resource of the country because they have to lookeither the human resource is adequate or not for their business (Raghuram, 2017). Thereis a need for skilled engineers, managers, and the operation management employees inIndia who can manage the operation in the country.Considering the challenges faced by the company it is recommended to the company to resolvethe challenges. The land acquisition in Mumbai will take place there is no way out for the same