Global Marketing: Market Analysis, Product Profile, and Market Entry Strategies for BHP Billiton in India

Running head: GLOBAL MARKETING
GLOBAL MARKETING
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GLOBAL MARKETING
2. Market Analysis
a) Target country
BHP Billiton has targeted India for the oil and petroleum project in India. Connecting and
operating in India has various challenges and opportunities. BHP Billiton believes that the there
are several factors which can help the organization to build long term relationship with the
country. However, there are hurdles like labor issues, overlapping and corruption levels (Block et
al. 2015). The political, social, legal and economic conditions of the country are discussed
below:
Political conditions: India is a democratic country, the elections are held locally and at national
levels. Political culture of India is highly unstable. This is one of the most critical factors for
attracting the foreign investors in the country (De Beule, Elia and Piscitello 2014). Moreover, the
major cause of concern for operating in India is high level of corruption. This is one of the major
challenges that can affect the business operations.
Economic conditions: Despite the political challenges, India is a fast growing economy. The
GDP of the country is $2.4 trillion. The growth rate of the country is 7.0% in 2018 (Rakesh
2014). The growth rate of the country is expected to grow in the near future. This is an
opportunity for the company.
Social and cultural environment: India has a huge population which makes it a great
opportunity for international companies. Further, it has abundant cheap labour. The labour of the
country is affordable and accessible. The communal harmony of the country is also an
opportunity for the company. Therefore, it is one of the most attractive markets (Sui and Baum
2014).

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GLOBAL MARKETING
b) Discussion on customer segments
BHP Billiton must consider the factors sustaining to the growth of the mining and
resource industry. BHP Billiton will be targeting the lucrative customers and segments the
consumers as per the priority list. The mining and resource industry is one of the core industries
in India. It contributes 15% to the GDP of the country (Rakesh 2014). The power and the
fertilizer sector of the country have high demand for gas, coal and petroleum assets. Hence this
sector can be targeted by the company.
c) Market opportunities and threats
As mentioned above, the oil and petroleum industry in India is most vital to the country.
It is the potential hub of refining. The capital cost is low by 25% to 50 % as compared to the
other countries (Agrawal 2015). It is expected to improve the by 45% in the future years to
come. Hence this is an opportunity for the company. Further, there is several government
initiatives in this sector such as 100% FDI is allowed in the private refineries and 26% in the
government owned refineries (Agrawal 2015). Hence there is a growth opportunity. However, it
can face stiff competition from the domestic mining and resource companies such as Indian
Mining Consultancy and Uranium Corporations of India Limited.
d) Market research
Expanding the business operations in India required market research to analyze the
availability of the necessary requirements. Information regarding the availability of advanced
technology for mining and refining must be taken into consideration and the locations of the
major mines (De Beule, Elia and Piscitello 2014). Further the availability of rare earth elements