Analyzing the International Business Environment in India

INTERNATIONAL
BUSINESS ENVIRONMENT

Contents
Introduction............................................................................................................... 3
Aalst........................................................................................................................ 3
Industry Outlook in India.............................................................................................. 4
Pestle Analysis........................................................................................................... 5
Five Porter`s forces model............................................................................................. 9
International strategy to enter the country........................................................................12
Conclusion.............................................................................................................. 14
References.............................................................................................................. 15

Introduction
This report brings out a discussion on analysing and examining most appropriate models in
order to identify the scope of the business in India. This report carries out a model
frameworks such as PESTLE analysis, SWOT analysis, internationalisation strategy, and
Porter`s five forces model to examine the business environment of India to decide whether
there is an opportunity to invest and earn higher profitability. Further, it will decide modes of
entry such as wholly subsidised, partially subsidised, joint ventures, acquisition, FDI,
licensing, franchising, or exporting as an entry proposal. Recent reports of US reveals that US
chocolate company “Hershey” while entering into the Indian market, it is not about worrying
because in order to expand a brand to build brand and wide network of distribution channel as
needed by it.
Aalst
Aalst is the manufacturer of chocolates, compounds, gourmet, and other related products,
which was established I n Singapore in 2003. The company operates with a global network of
nearly 45 countries such as china, UK, and Middle East (Aalst chocolate, 2019). The owners
of the company named as Richard and Connie who aimed to bring their resources,
capabilities, and experience that they have received after working in the food and service
industry. The mission of the company to deliver the quality chocolate, which makes it to
stand out and finally contribute to market success (Aalst chocolate, 2019). The company has
doubled its production facilities accomplished with formalised and efficient processes and
continuously investing in the greater resources. The company offers wide range of products
for chocolates, biscuits, ice cream, semi-finished compounds, and chocolate compounds. The
company operates and distributes certain brands such as Cocao ivory, Aalst Chocolate, Aalst
home, louella, and Patissier (Aalst chocolate, 2019).

Industry Outlook in India
From the recent reports, it has been seen that Indian chocolate market is experiencing
tremendous hike and growth of value and volume. This governance of market has been
maintained by large chocolate international giants with the help of expansion and franchisee
in the market like India (Kaul, 2019). Therefore, India has become a market of great
opportunity and it is expected that it will grow at the healthier rate for the next upcoming
years. After seeing at the chocolate industry, developing countries remained successful
markets, as they are the main growth drivers and promoters in the emerging countries.
Increasing liberalisation and urbanisation, availability of confectionary items and other
related products remained other key market booster (Kaul, 2019). It is expected that the sale
of seasonal and holiday chocolate are estimated to pace up in the upcoming years. It is
enriched with suppression of the blood pressure. While viewing the market future it is seen
that Indian consumers are estimated to consume 228 thousand tons of chocolate in 2016,
which reflects customer`s preference towards the chocolate based snacks and customer`s will
towards spending for the premium confessionary (Kaul, 2019).