International Business Environments

International Business Environment 1
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International Business Environment 2
Porter’s Diamond Model: FDI Analysis of the Indian Market
Introduction:
In this modern-day world, and being amongst the most competitive markets of the world, one
has to be on his toes to outsmart his peers in the market. Especially, if in a sector where
technology is used for most of the purposes, it becomes a tough task to stay put in the market.
Our firm, ABC Technologies LLC, is strived to cover the BRIC economies, for, they are the
most potential in terms of usage, market capita, and re-use. As of now, our firm is poised to
cover the Indian markets in the coming of age scenario (Borker, 2012). Our firm will solely
focus upon the digitized market of the Indian consumers in the consumer goods segment and
will look forward to capturing the mainstream consumers using the IP connection, corporate
services, satellite services, mobility services, and voice services. We all are well aware of the
market population size of the Indian subcontinent and its neighbors. India has comprised of
the major chunk of the youth population that the world has only second to Brazil. We shall
cater to the public demanding their usage items only through online purchases. The company
structure will not be a different one but will have normal departments of research, production,
finance, and administration, all spaced out into one office in Bangalore, the silicon city of
India. We have chosen Bangalore because of its stature in the online consumer segment.
Every day, we can see new consumers opting to use and starting to learn to use the consumer
goods made for their ease. Considering in mind the path-breaking study made by Porter about
the International markets, we are sure that our firm will surely be able to strike the right chord
with our target audience (Gopalan and Rajan, 2016). Our firm will use the digital platform to
first study the ins and outs of the Indian users, their reaction to the digital advertising media
and their behavior against opting to choose something available on the internet to that which

International Business Environment 3
is available at the retails shops. Since most of the consumer goods are easily available at
going through shops and outlets, we will also have to take into account how spatially are
these outlets located in the major cities that our firm will cater to. Corroborating further, the
basis of this report will be the stimulus, a consumer goes through while opting for a consumer
good, when he gets across an advertisement of a product of his or her choice, on online
media. In totality, the objective of this report would be to put forward an investigation on the
telecommunication market of India to find the strengths of the market which would then
eventually be used to expand our business (Bondarenko, Gordienko and Dutchenko, 2019).
Porter’s Diamond Model:
Micahel Porter’s Diamond Model is one framework used for industries to figure out the
competitive advantage of one over the other in an international market by using various
factors such as Firm Strategy, its structure, its rival industries, the demand of the nation in
apropos to the product or service, related or supported industries and the factor conditions
that prevail in the environment (Holtbrügge and Friedmann, 2016). Altogether, they help to
understand whether a firm will be able to strike a chord in the market or not.
A brief of the diamond model when applied to the Indian market, can be tabulated as follows:

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Source- Image self-created
Firm Strategy, Structure, and Rivalry:
These service providers have been able to grasp the interest of the market not only because of
their intensive research about the different age scales of the population but also because of
their inter-relation with the flexible policies of the regional government, like the providing
warehouse's etcetera.
Since the globalization era started, the Indian government has laid out as a series of reforms
in the telecommunication sector. The Department of Telecommunication; now the Telecom
Regulatory Authority of India allowed the private players to enter the telecommunication
market at the start of the last decade of the 21st century (Das and Dutta, 2011). This allowed
issuing of licenses and policymaking to access the mobile communication services. While in
the year 2008, the Indian government also opened its segments to the use of wireless
communications. Furthermore, the crossover spectrum policy enabled the operators to access