International Marketing | Project Report

INTERNATIONAL
MARKETING

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Contents
Introduction...........................................................................................................................................1
Trend.....................................................................................................................................................1
Its impact on attractiveness....................................................................................................................1
Opportunities.........................................................................................................................................2
Threats...................................................................................................................................................2
Conclusion.............................................................................................................................................3
References.............................................................................................................................................3

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Introduction
Today’s business environment has become highly complex and the change in the business
environment has become very fast. This fast change in the global business has created many
trends and these trends are so powerful that it has deeper impact on the operations of the firm.
A firm needs to be ready with the challenges that they might face in the future to some or the
other trends (Shalender and Yadav, 2019). For a company that is aiming to expand their
business in other countries will have to give more focus towards the trends in those countries
that might create an opportunity or threat to their business. Holden which is one of the oldest
car manufacturers in Australia is aiming to expand their business into India. They will face
the trend related to purchasing behaviour of the people. This report is going to discuss the
trend that is going to have impact on the expansion plans of the company in India.
Trend
It is seen that India is at a brink of recession and the one of the industries that was severely
got impacted by these shadows of recession is the auto-mobile manufacturing. Due to this,
people are spending their money wisely and are constraining themselves from making any
new expensive expenditure. People are also looking towards the products that are available at
the lower cost (Singh and Avikal, 2019). Due to the increasing trade war between U.S. and
China the global market is not expected to show a positive growth and hence people will look
for the economical products.
Its impact on attractiveness
India is one of the fastest developing nations in the world still the impact of global economic
turndown can be easily seen on Indian consumer as well. It is to be understood that this trend
has a deeper impact on the market attractiveness (Sharma, 2019). In spite of the fact that
India has a very large population there is decrease in the car sales in the past one year. Along
with this government policies have also impacted the industry as government has asked
companies to upgrade its technology and hence people are in two minds that whether they
should purchase now or they should purchase once all the cars will be upgraded (Nagamani
and Muthusamy, 2019). Apart from this the Non-financial banking sector along with banking
sector is not performing well hence people are not getting easy loans. This is decreasing the

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sale of cars within the country and hence having impact on the countries attractiveness.
There is also increasing unemployment rate in India and this is again changing the purchasing
behaviour of families in the country. The individual’s purchasing behaviour has become more
involved.
Opportunities
Even this negative environment is an opportunity for the company. The opportunity can be
explained in terms of the fact that due to this negative environment there is larger numbers of
people that want cars at lower cost (Raval, 2019). Holden can lower down the prices of their
products. This can be done by reducing or lowering the production cost of the company. This
will help the company to attract those customers as well that is aiming to purchase cars but
they are not able to because of higher prices. By lowering the cost of their products they will
be able to achieve higher sales even in the worst of situations.
By utilising the technology that generates lesser pollution, Holden will be able to achieve
higher sales in the market and the same time they will be able to manage their sales on the
higher side. India is going to be one of the biggest markets for hybrid and electric cars
(Chaubey and Sahoo, 2019). If Holden will be able to bring these two products at lower
prices, than they might be able to attract new customers in the future. Since in India the
increasing petrol prices is another major reason for trends like purchasing economical cars
hence they need to bring more such cars that runs on alternative fuels.
Threats
Threats have also arisen due to this change in the trend of the people regarding expenditure of
their money. This can be understood in terms of the fact that negative economic environment
has lowered down the salaries of the people. Due to this the people that were previously
thinking of buying cars are going into the state of waiting for good time so that they can get
easy car loans for it. Threats are also in the areas like sale of sedan or luxury cars as these are
of higher cost and people will not prefer these cars (Singh, V. 2019). Another major threat is
that the nation based companies like Tata Motors and Maruti which has greater market share
are not in the condition to do joint venture so that Holding can make time for themselves so
as to make their mark in the industry.

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The threat also gets bigger in terms of the fact that the cost of Dollar is increasing day by day
when compared with India rupee. This will not only enhance the cost of the products of
Holding but will also act negatively towards the India market. Indian people’s purchasing
behaviour suggests that in purchasing high involvement products, people often looks for only
those products that are from the companies have trusted names. In such case this kind of
trend will not support the company’s objective of achieving a significant sale in the Indian
market (Kerswell and Pratap, 2019). This trend is also a threat as it will not allow holding to
enhance in the India subcontinent region only as the purchasing behaviour of the people in
the region is driven by Indian market.
Conclusion
From the above based report it can be concluded that Indian car market is very big but the
trends of the people to constraint their expenditure will have negative impact for the
companies like Holding that aims to expand in this country. It has also created opportunities
for holding as they can lower down their products and attracts people who want to buy cars.
This trend has threat for the luxury car market in India.

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References
Chaubey, A. and Sahoo, C.K., 2019. Enhancing organizational innovation in Indian
automobile industry. International Journal of Innovation Science, 11(1), pp.82-101.
Kerswell, T. and Pratap, S., 2019. Informality in the Indian Automobile Industry.
In Globalization, Labour Market Institutions, Processes and Policies in India (pp. 187-209).
Palgrave Macmillan, Singapore.
Nagamani, K.N. and Muthusamy, A., 2019. Study on direction of Indian automobile
industry. Asian Journal of Multidimensional Research (AJMR), 8(7), pp.44-57.
Raval, N., 2019. DEMONETIZATION IN INDIA: PRE AND POST EFFECT ON INDIAN
AUTOMOBILE INDUSTRY. Global Journal For Research Analysis, 8(6).
Shalender, K. and Yadav, R.K., 2019. Strategic flexibility, manager personality, and firm
performance: The case of Indian Automobile Industry. Global Journal of Flexible Systems
Management, 20(1), pp.77-90.
Sharma, M. 2019. Auto sector crisis: 2.30 lakh jobs lost as industry faces worst crisis in 20
years. [Online] Available at: https://www.indiatoday.in/business/story/auto-sector-crisis-two-
lakh-jobs-industry-worst-crisis-20-years-1580386-2019-08-13. [Accessed on 31st August
2019]
Singh, R. and Avikal, S., 2019. A MCDM-Based Approach for Selection of a Sedan Car from
Indian Car Market. In Harmony Search and Nature Inspired Optimization Algorithms (pp.
569-578). Springer, Singapore.
Singh, V. 2019. Indian automobile industry under intense pressure, major companies witness
sales decline in July 2019. [Online] Available at: https://www.indiatoday.in/auto/latest-auto-
news/story/major-indian-automobile-companies-witness-sales-decline-in-july-2019-1576200-
2019-08-01. [Accessed on 31st August 2019]