BUS344 International Management Major Project: Ninja Van in India
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AI Summary
This major project proposal details Ninja Van's potential entry into the Indian e-commerce logistics market. It begins with an executive summary and an overview of the e-commerce and logistics industry, focusing on Ninja Van's company profile, services, and shareholder structure. The proposal then analyzes the Indian market, including Porter's Five Forces, customer profiles, and demand analysis. Environmental factors are assessed using PESTEL and SWOT analyses, followed by considerations of Hofstede's cultural dimensions and government regulations. The project outlines a comprehensive business strategy, including product/service positioning, pricing, distribution, advertising, and future plans. Financial planning, including benefit-cost analysis, projected profit and loss statements, and cash flow forecasts, are also provided. Finally, the proposal addresses management considerations, including personnel, business advisors, and contingency plans, concluding with recommendations for successful market entry. The project emphasizes a joint venture approach, leveraging local expertise and adapting strategies to the unique challenges and opportunities within the Indian market.
BUS344 INTERNATIONAL MANAGEMENT
MAJOR PROJECT PROPOSAL
LECTURER: DR JURGEN RUDOLPH
GROUP MEMBERS NAME:
APRIL HOON BOON TENG (33378201)
LEE YI HUAI (33413826)
ONG KWEE CHEN, ANGELIA (33483324)
CHRISTINA TJAHYADI (33499746)
YAP JIA KERR, ASHLEY (33574575)
TOTAL WORD COUNT: 11,1565
REFERENCE STYLE: APA 6TH EDITION
URKUND SCORE: 1%
MAJOR PROJECT PROPOSAL
LECTURER: DR JURGEN RUDOLPH
GROUP MEMBERS NAME:
APRIL HOON BOON TENG (33378201)
LEE YI HUAI (33413826)
ONG KWEE CHEN, ANGELIA (33483324)
CHRISTINA TJAHYADI (33499746)
YAP JIA KERR, ASHLEY (33574575)
TOTAL WORD COUNT: 11,1565
REFERENCE STYLE: APA 6TH EDITION
URKUND SCORE: 1%
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TABLE OF CONTENTS:
1. Executive Summary.......................................................................................... 5
2. The e-commerce and logistics industry ............................................................ 6
2.1 Logistics for the e-commerce industry in Singapore ......................................... 7
3. Ninja Van’s Company Introduction ......................................................................... 8
3.1 Mission and Vision ............................................................................................ 9
3.2 Company Profile ............................................................................................... 9
3.3 Shareholder structure ..................................................................................... 10
4. Ninja Van’s services in India ................................................................................ 10
4.1 Ninja Van’s entry in India ................................................................................ 11
4.2. Porter’s Five Forces Analysis ........................................................................ 12
Threat of New Entrants – Medium to High ............................................................ 12
Bargaining Power of Buyers – Medium................................................................. 13
Bargaining Power of Suppliers – Low ................................................................... 13
Threat of Substitutes – Low .................................................................................. 14
Industry Rivalry – High .......................................................................................... 15
4.3 Customer Profile and Demand Analysis ......................................................... 15
Geographic Segmentation .................................................................................... 15
Demographic Segmentation ................................................................................. 16
Psychographic Segmentation ............................................................................... 16
Behavioural Segmentation .................................................................................... 18
5. Environmental Factors ......................................................................................... 19
5.1 PESTEL Analysis............................................................................................ 19
Political ................................................................................................................. 19
Economic .............................................................................................................. 21
Social-Cultural ...................................................................................................... 22
Technological ....................................................................................................... 23
TABLE OF CONTENTS:
1. Executive Summary.......................................................................................... 5
2. The e-commerce and logistics industry ............................................................ 6
2.1 Logistics for the e-commerce industry in Singapore ......................................... 7
3. Ninja Van’s Company Introduction ......................................................................... 8
3.1 Mission and Vision ............................................................................................ 9
3.2 Company Profile ............................................................................................... 9
3.3 Shareholder structure ..................................................................................... 10
4. Ninja Van’s services in India ................................................................................ 10
4.1 Ninja Van’s entry in India ................................................................................ 11
4.2. Porter’s Five Forces Analysis ........................................................................ 12
Threat of New Entrants – Medium to High ............................................................ 12
Bargaining Power of Buyers – Medium................................................................. 13
Bargaining Power of Suppliers – Low ................................................................... 13
Threat of Substitutes – Low .................................................................................. 14
Industry Rivalry – High .......................................................................................... 15
4.3 Customer Profile and Demand Analysis ......................................................... 15
Geographic Segmentation .................................................................................... 15
Demographic Segmentation ................................................................................. 16
Psychographic Segmentation ............................................................................... 16
Behavioural Segmentation .................................................................................... 18
5. Environmental Factors ......................................................................................... 19
5.1 PESTEL Analysis............................................................................................ 19
Political ................................................................................................................. 19
Economic .............................................................................................................. 21
Social-Cultural ...................................................................................................... 22
Technological ....................................................................................................... 23
Page 3 of 65
Environmental ....................................................................................................... 23
Legal ..................................................................................................................... 24
5.2 SWOT Analysis............................................................................................... 25
Strengths .............................................................................................................. 25
Weaknesses ......................................................................................................... 25
Opportunities ........................................................................................................ 26
5.3 Hofstede’s Cultural Dimension........................................................................ 27
5.4 Government Constraints and Incentives ......................................................... 29
6. Business Strategy ................................................................................................ 30
6.1. Product/ Service Positioning .......................................................................... 30
6.2 Pricing Strategy .............................................................................................. 33
6.3. Distribution and logistics ................................................................................ 34
6.5 Advertising and promotion .............................................................................. 48
6.8 Future plan ..................................................................................................... 54
7. Ninja Van’s financial planning .............................................................................. 55
7.1. Benefit-Cost Analysis ..................................................................................... 55
Projected Profit and Loss Statement Forecast for Ninja Van from Year 2020 to
Year 2022 ............................................................................................................. 55
Projected Profit and Loss Statement Forecast for Ninja Van from the Year 2020 to
the Year 2022 ....................................................................................................... 57
Projected Expenses Forecast for Ninja van Pte Ltd from the Year 2020 to the Year
2022...................................................................................................................... 57
Projected Expenses Forecast for Ninja Van Pte Ltd in the Year 2020 .................. 58
Projected Expenses Forecast for Ninja Van Pte Ltd in the Year 2021 .................. 59
Projected Expenses Forecast for Ninja Van Pte Ltd in the Year 2022 .................. 60
Cash Flow Forecast for Ninja Van for the Year 2020 to the Year 2022 ................ 61
Forecasted Three Years Performance Summary ................................................. 62
8. Management Consideration ................................................................................. 63
Environmental ....................................................................................................... 23
Legal ..................................................................................................................... 24
5.2 SWOT Analysis............................................................................................... 25
Strengths .............................................................................................................. 25
Weaknesses ......................................................................................................... 25
Opportunities ........................................................................................................ 26
5.3 Hofstede’s Cultural Dimension........................................................................ 27
5.4 Government Constraints and Incentives ......................................................... 29
6. Business Strategy ................................................................................................ 30
6.1. Product/ Service Positioning .......................................................................... 30
6.2 Pricing Strategy .............................................................................................. 33
6.3. Distribution and logistics ................................................................................ 34
6.5 Advertising and promotion .............................................................................. 48
6.8 Future plan ..................................................................................................... 54
7. Ninja Van’s financial planning .............................................................................. 55
7.1. Benefit-Cost Analysis ..................................................................................... 55
Projected Profit and Loss Statement Forecast for Ninja Van from Year 2020 to
Year 2022 ............................................................................................................. 55
Projected Profit and Loss Statement Forecast for Ninja Van from the Year 2020 to
the Year 2022 ....................................................................................................... 57
Projected Expenses Forecast for Ninja van Pte Ltd from the Year 2020 to the Year
2022...................................................................................................................... 57
Projected Expenses Forecast for Ninja Van Pte Ltd in the Year 2020 .................. 58
Projected Expenses Forecast for Ninja Van Pte Ltd in the Year 2021 .................. 59
Projected Expenses Forecast for Ninja Van Pte Ltd in the Year 2022 .................. 60
Cash Flow Forecast for Ninja Van for the Year 2020 to the Year 2022 ................ 61
Forecasted Three Years Performance Summary ................................................. 62
8. Management Consideration ................................................................................. 63
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8.1 Personnel/sales force factors ......................................................................... 63
8.2 Business advisers ........................................................................................... 64
8.3 Contingency plans .......................................................................................... 64
9. Conclusion & Recommendation ........................................................................... 65
10. References ......................................................................................................... 66
8.1 Personnel/sales force factors ......................................................................... 63
8.2 Business advisers ........................................................................................... 64
8.3 Contingency plans .......................................................................................... 64
9. Conclusion & Recommendation ........................................................................... 65
10. References ......................................................................................................... 66
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1. Executive Summary
Ninja Van is one of Singapore’s fastest growing last-mile e-commerce logistics
company. With the support of Grab, a mobility technology company in Singapore, it is
set to scale up strategically within the region. With the e-commerce industry booming,
this business plan aims to look into the probability of Ninja Van venturing into India by
exploring all the business aspects of a joint venture.
India has one of the highest growth rates and the fastest economies in the world. With
its technology capabilities and strategic planning, the report will dissect the
advantages, and disadvantages Ninja Van will face upon entering this new market.
PESTLE and SWOT analysis will be used to deep dive into the macro-environment
factors for both Ninja Van and the host country, as well as the potential encounter of
opportunities.
This report will provide further insights as to the ideal way to enter a challenging
market- India, by using the 7Ps of the service marketing mix as a business strategy.
With the immense growth in the service industry, customers are not only focused on
the outcome but also obsessed with customer experience. This plan will be tailored to
suit the India market from advertising and marketing to its pricing strategy.
To conclude the report, contingency plans will be put in place in the event of
operational failure or unforeseen circumstances such as the occurrence of a natural
disaster. The report will also cover suggestions for management consideration and
business advisors.
Based on the three years forecasted profit and loss statement, the first year inevitably
reflects a net loss given penetration of new markets and minimum branding awareness.
Fortunately, the result for the following two years is projected to look positive at a
gradual pace. With the right strategy, local expertise and patience, Ninja Van’s entry
into India can be successful.
1. Executive Summary
Ninja Van is one of Singapore’s fastest growing last-mile e-commerce logistics
company. With the support of Grab, a mobility technology company in Singapore, it is
set to scale up strategically within the region. With the e-commerce industry booming,
this business plan aims to look into the probability of Ninja Van venturing into India by
exploring all the business aspects of a joint venture.
India has one of the highest growth rates and the fastest economies in the world. With
its technology capabilities and strategic planning, the report will dissect the
advantages, and disadvantages Ninja Van will face upon entering this new market.
PESTLE and SWOT analysis will be used to deep dive into the macro-environment
factors for both Ninja Van and the host country, as well as the potential encounter of
opportunities.
This report will provide further insights as to the ideal way to enter a challenging
market- India, by using the 7Ps of the service marketing mix as a business strategy.
With the immense growth in the service industry, customers are not only focused on
the outcome but also obsessed with customer experience. This plan will be tailored to
suit the India market from advertising and marketing to its pricing strategy.
To conclude the report, contingency plans will be put in place in the event of
operational failure or unforeseen circumstances such as the occurrence of a natural
disaster. The report will also cover suggestions for management consideration and
business advisors.
Based on the three years forecasted profit and loss statement, the first year inevitably
reflects a net loss given penetration of new markets and minimum branding awareness.
Fortunately, the result for the following two years is projected to look positive at a
gradual pace. With the right strategy, local expertise and patience, Ninja Van’s entry
into India can be successful.
Page 6 of 65
2. The e-commerce and logistics industry
Technology is proliferating over the years, driving the e-commerce industry to
significant growth over the world. The global sales of e-commerce grew by 18% from
2017 to 2018. Consumers spent $2.86 trillion on the internet in the year 2018. The
internet has changed how people shop and enable consumers to shop in the diverse
market across the globe (Young, 2019).
The evolution of the e-commerce industry has changed the logistics and transportation
management system. Hence, the role of last mile delivery is increasingly important as
it facilitates the issue of limited vehicle capacit y, while e-commerce customers have
high expectations for the arrival timing of their items from order till delivery (Burnson,
2019). The global logistics market is expected to grow from $8.1 trillion in 2015 to
$15.5 trillion by 2023. The e-commerce market place such as Amazon, Taobao and
others are driving forces for the expansion in the logistics industry (Henry, 2019).
2. The e-commerce and logistics industry
Technology is proliferating over the years, driving the e-commerce industry to
significant growth over the world. The global sales of e-commerce grew by 18% from
2017 to 2018. Consumers spent $2.86 trillion on the internet in the year 2018. The
internet has changed how people shop and enable consumers to shop in the diverse
market across the globe (Young, 2019).
The evolution of the e-commerce industry has changed the logistics and transportation
management system. Hence, the role of last mile delivery is increasingly important as
it facilitates the issue of limited vehicle capacit y, while e-commerce customers have
high expectations for the arrival timing of their items from order till delivery (Burnson,
2019). The global logistics market is expected to grow from $8.1 trillion in 2015 to
$15.5 trillion by 2023. The e-commerce market place such as Amazon, Taobao and
others are driving forces for the expansion in the logistics industry (Henry, 2019).
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2.1 Logistics for the e-commerce industry in Singapore
The logistics industry is a critical enabler to Singapore’s economy. Singapore has the
strategic location of the heart of Asia, and its logistics professionalism has helped to
attract the world’s top 25 third-party logistics company to establish their headquarters
in Singapore (Zhang, 2018). Singapore has the quickest time in export and import,
and imported goods to Singapore take merely 30 hours to clear the border compliance
process (TAN, 2018). Besides, Singapore has the highest demand for online
purchasing in Southeast Asia. Singapore is ranked the top country within Southeast
Asia, where most consumers shop online after working hours (Mato, 2018). Therefore,
the growth of e-commerce is a positive indication for the logistics industry in Southeast
Asia.
Figure 1 (Singapore eCommerce Insights | 4.11 Million Online Shoppers By 2021. (2019). Retrieved
from https://www.eshopworld.com/blog/singapore-ecommerce-insights/)
Porter’s Five Forces framework on the e-commerce delivery service in Singapore
indicates that the threat of new entrants in Singapore is low. Other courier service
providers can easily copy the last-mile delivery business model.
However, the threat of substitution is perceived high. Customers are in a position to
choose other service providers such as Speedpost, TA-Q-BIN and many more to enjoy
similar delivery services based on brand loyalty, pricing or convenience. Figure 2
reflects the list of competitors in the industry.
We also observed that the bargaining power of supplier is relatively low. The certificate
of entitlement (COE) in Singapore has caused the price of Singapore’s vehicles to be
2.1 Logistics for the e-commerce industry in Singapore
The logistics industry is a critical enabler to Singapore’s economy. Singapore has the
strategic location of the heart of Asia, and its logistics professionalism has helped to
attract the world’s top 25 third-party logistics company to establish their headquarters
in Singapore (Zhang, 2018). Singapore has the quickest time in export and import,
and imported goods to Singapore take merely 30 hours to clear the border compliance
process (TAN, 2018). Besides, Singapore has the highest demand for online
purchasing in Southeast Asia. Singapore is ranked the top country within Southeast
Asia, where most consumers shop online after working hours (Mato, 2018). Therefore,
the growth of e-commerce is a positive indication for the logistics industry in Southeast
Asia.
Figure 1 (Singapore eCommerce Insights | 4.11 Million Online Shoppers By 2021. (2019). Retrieved
from https://www.eshopworld.com/blog/singapore-ecommerce-insights/)
Porter’s Five Forces framework on the e-commerce delivery service in Singapore
indicates that the threat of new entrants in Singapore is low. Other courier service
providers can easily copy the last-mile delivery business model.
However, the threat of substitution is perceived high. Customers are in a position to
choose other service providers such as Speedpost, TA-Q-BIN and many more to enjoy
similar delivery services based on brand loyalty, pricing or convenience. Figure 2
reflects the list of competitors in the industry.
We also observed that the bargaining power of supplier is relatively low. The certificate
of entitlement (COE) in Singapore has caused the price of Singapore’s vehicles to be
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high. Hence, vehicle dealerships make minimal profits. The buyer's bargaining power
is high as it has a greater number of options available with competitive pricing.
(Figure 2. Retrieved from: https://blog.moneysmart.sg/budgeting/delivery-courier-service-singapore/)
3. Ninja Van’s Company Introduction
Ninja Van (NV), a privately held company, is the fastest growing last-mile e-commerce
logistics company with millions of packages delivered every month. NV's services
have already expanded to several countries in Southeast Asia, which includes
Malaysia, Philippines, Indonesia, Thailand, and Vietnam in just six years. The
company has 2,000 full- time staff and 10,000 full- time drivers across the region
(Jagdish 2018).
Technology plays a crucial part in NV. NV provides businesses needs with an
innovative technology-based solution to logistics optimisation (Tay, 2015). The
employment of technology in NV's operation allowed real-time updates on deliveries
across every aspect of the company that is a push- infrastructure empowered besides
deep integration with partners and application of webhook architecture API which
enables the company and customers on receiving the latest updates.
high. Hence, vehicle dealerships make minimal profits. The buyer's bargaining power
is high as it has a greater number of options available with competitive pricing.
(Figure 2. Retrieved from: https://blog.moneysmart.sg/budgeting/delivery-courier-service-singapore/)
3. Ninja Van’s Company Introduction
Ninja Van (NV), a privately held company, is the fastest growing last-mile e-commerce
logistics company with millions of packages delivered every month. NV's services
have already expanded to several countries in Southeast Asia, which includes
Malaysia, Philippines, Indonesia, Thailand, and Vietnam in just six years. The
company has 2,000 full- time staff and 10,000 full- time drivers across the region
(Jagdish 2018).
Technology plays a crucial part in NV. NV provides businesses needs with an
innovative technology-based solution to logistics optimisation (Tay, 2015). The
employment of technology in NV's operation allowed real-time updates on deliveries
across every aspect of the company that is a push- infrastructure empowered besides
deep integration with partners and application of webhook architecture API which
enables the company and customers on receiving the latest updates.
Page 9 of 65
3.1 Mission and Vision
NV has a simple yet impactful mission statement. It aims to connect Southeast Asia
to a world of possibilities with one delightful delivery at a time. CEO Chang Wen also
has a vision of a ninja being available to any customers in Southeast Asia and to cater
their needs in logistics. NV is driven to do delivery which provides to businesses of all
sizes and believes in divine product creation to serve customers better. NV focuses
on removing the hassle out of the parcel for customers and is dedicated to ensuring
simple logistics as well as a seamless affair for its business partners and consumers
(ninjavan.com).
3.2 Company Profile
The startup of NV begins when Marcella, a company founded by Lai Chang Wen which
specialised in making custom menswear (Ong, 2018), was faced with a problem of
unreliable courier services where the products are either delayed, lost or damaged
during the delivery process. Chang Wen, Shaun Chong, and Tan Boxian, who are
school mates, realised that there was a potential in the logistics market of the e-
commerce industry (Salim, 2018) and founded NV in 2014. The trio is NV's CEO, CTO,
and COO, respectively.
Timeline of Ninja Van
3.1 Mission and Vision
NV has a simple yet impactful mission statement. It aims to connect Southeast Asia
to a world of possibilities with one delightful delivery at a time. CEO Chang Wen also
has a vision of a ninja being available to any customers in Southeast Asia and to cater
their needs in logistics. NV is driven to do delivery which provides to businesses of all
sizes and believes in divine product creation to serve customers better. NV focuses
on removing the hassle out of the parcel for customers and is dedicated to ensuring
simple logistics as well as a seamless affair for its business partners and consumers
(ninjavan.com).
3.2 Company Profile
The startup of NV begins when Marcella, a company founded by Lai Chang Wen which
specialised in making custom menswear (Ong, 2018), was faced with a problem of
unreliable courier services where the products are either delayed, lost or damaged
during the delivery process. Chang Wen, Shaun Chong, and Tan Boxian, who are
school mates, realised that there was a potential in the logistics market of the e-
commerce industry (Salim, 2018) and founded NV in 2014. The trio is NV's CEO, CTO,
and COO, respectively.
Timeline of Ninja Van
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3.3 Shareholder structure
(Figure 3: Ninja Van’s major shareholders (Lee, 2018). Retrieved from:
https://www.techinasia.com/singapore-logistics-firm-ninja-van-concludes-series-funding)
The latest funding of at least US$87 million from DPD Group, an international parcel
delivery company based in France which now holds a 32% stake in NV could help to
improve NV's services (Lee, 2018), given that NV is still considerably new and young
in the industry. NV’s CEO and COO ownership in NV are relatively low, only 6% each.
Holding the same stake as the founders are Aureos and YJ Capital. Monk Hill Ventures’
funding in 2015 also gave them a 17% ownership in NV. Samurai Ventures and B
Capital hold 16% and 7% respectively in NV.
4. Ninja Van’s services in India
(Figure 4: Services provided by Ninja Van. Source: Ninja Van. Retrieved from: www.ninjavan.com)
NV’s services are catered to customers of every budget. Customers can collect, return,
and send parcels at any Ninja Points or Ninja Boxes located at various locations.
Partnerships with retail stores, restaurants, shop lots and buildings in India will bring
convenience for customers of India who prefers to collect, return, and send parcels
personally.
3.3 Shareholder structure
(Figure 3: Ninja Van’s major shareholders (Lee, 2018). Retrieved from:
https://www.techinasia.com/singapore-logistics-firm-ninja-van-concludes-series-funding)
The latest funding of at least US$87 million from DPD Group, an international parcel
delivery company based in France which now holds a 32% stake in NV could help to
improve NV's services (Lee, 2018), given that NV is still considerably new and young
in the industry. NV’s CEO and COO ownership in NV are relatively low, only 6% each.
Holding the same stake as the founders are Aureos and YJ Capital. Monk Hill Ventures’
funding in 2015 also gave them a 17% ownership in NV. Samurai Ventures and B
Capital hold 16% and 7% respectively in NV.
4. Ninja Van’s services in India
(Figure 4: Services provided by Ninja Van. Source: Ninja Van. Retrieved from: www.ninjavan.com)
NV’s services are catered to customers of every budget. Customers can collect, return,
and send parcels at any Ninja Points or Ninja Boxes located at various locations.
Partnerships with retail stores, restaurants, shop lots and buildings in India will bring
convenience for customers of India who prefers to collect, return, and send parcels
personally.
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With the Ninja Pack service, customers can fit their deliveries in a pack and enjoy a
flat- rate delivery. Cash-on-delivery option is available everywhere, which benefit
customers who yet to have access to online payments. Customers are also able to
know the progression of the delivery with a seamless real-time tracking function.
Unsuccessful deliveries will be re-attempted with no extra charges.
As an experienced last-mile delivery player in the logistics industry, NV delivers
globally to S.E.A. and is the only logistics company which provides reliable cash on
delivery payment option.
4.1 Ninja Van’s entry in India
An equity joint venture (JV) with a local transportation company in India is NV’s ideal
mode of entry where NV and a local transportation company creates an independent
legal entity according to an agreement both parties make.
NV can limit their exposure by sharing the liabilities with the local transportation
company. Risks are also better managed. Having a local partner will allow NV to focus
on its back- end operations and technology services while the transportation partner
who already has established contacts, distribution, marketing set up, vehicles, drivers
and employees will help smoothen the entire delivery process.
Also, royalty payments which were required back then have now been removed. It is
necessary for the sale of shares in an Indian company be taxed in India, but profits
can be repatriated as long as domestic and federal taxes are met. Singapore is
included in the double tax avoidance agreements (DTAAs) with India which disclose
the provision of benefits in regards to capital gains tax and withholding taxes on
interest payments. NV can protect intellectual property (IP), a separate law involving
complex legalities navigation and numerous documents submission by registration
and detailing provisions in the JV agreement (Dezan, et al., 2018).
With the Ninja Pack service, customers can fit their deliveries in a pack and enjoy a
flat- rate delivery. Cash-on-delivery option is available everywhere, which benefit
customers who yet to have access to online payments. Customers are also able to
know the progression of the delivery with a seamless real-time tracking function.
Unsuccessful deliveries will be re-attempted with no extra charges.
As an experienced last-mile delivery player in the logistics industry, NV delivers
globally to S.E.A. and is the only logistics company which provides reliable cash on
delivery payment option.
4.1 Ninja Van’s entry in India
An equity joint venture (JV) with a local transportation company in India is NV’s ideal
mode of entry where NV and a local transportation company creates an independent
legal entity according to an agreement both parties make.
NV can limit their exposure by sharing the liabilities with the local transportation
company. Risks are also better managed. Having a local partner will allow NV to focus
on its back- end operations and technology services while the transportation partner
who already has established contacts, distribution, marketing set up, vehicles, drivers
and employees will help smoothen the entire delivery process.
Also, royalty payments which were required back then have now been removed. It is
necessary for the sale of shares in an Indian company be taxed in India, but profits
can be repatriated as long as domestic and federal taxes are met. Singapore is
included in the double tax avoidance agreements (DTAAs) with India which disclose
the provision of benefits in regards to capital gains tax and withholding taxes on
interest payments. NV can protect intellectual property (IP), a separate law involving
complex legalities navigation and numerous documents submission by registration
and detailing provisions in the JV agreement (Dezan, et al., 2018).
Page 12 of 65
NV must adequately assess the following criteria before signing a joint venture
contract to avoid conflicts:
● Applicable law
● Management committee
● Transfer of shares
● Change of control
● Restriction or prohibition
on assignment
● Break of deadlock
● Shareholding pattern
● Frequency of board
meeting and its venue
● Dividend policy
● Non-compete
parameters
● Confidentiality
● Jurisdiction for
resolution of a dispute
● Composition of the
board of directors
● General meeting and its
venue
● Employment of funds in
cash or kind
● Indemnity
● Termination criteria and
notice
Source: Dezan Shira & Associates 2018
4.2. Porter’s Five Forces Analysis
By analysing the competitive industry and market in India using Michael Porter’s five
forces, NV’S strategies to enter India can be identified and adjusted accordingly. NV
must distinguish its position by analysing its strengths and weaknesses as there will
be an impact on long-term profitability.
Threat of New Entrants – Medium to High
The rising and onset of the e-commerce industry, with the entrance of Flipkart,
Snapdeal and Amazon which out-sourced logistics services to deliver goods
purchased by customers has helped companies in India to set their foothold in the
logistics industry (Agarwal, 2017). In November 2017, the government of India had
allowed e-commerce start-ups to sell goods in the global markets at a competitive
price upon granting the infrastructure status to the logistics companies. The grant has
increased the competition among the conventionally ran companies and new
companies that are more advanced in technology (Abihshek, 2019).
NV must adequately assess the following criteria before signing a joint venture
contract to avoid conflicts:
● Applicable law
● Management committee
● Transfer of shares
● Change of control
● Restriction or prohibition
on assignment
● Break of deadlock
● Shareholding pattern
● Frequency of board
meeting and its venue
● Dividend policy
● Non-compete
parameters
● Confidentiality
● Jurisdiction for
resolution of a dispute
● Composition of the
board of directors
● General meeting and its
venue
● Employment of funds in
cash or kind
● Indemnity
● Termination criteria and
notice
Source: Dezan Shira & Associates 2018
4.2. Porter’s Five Forces Analysis
By analysing the competitive industry and market in India using Michael Porter’s five
forces, NV’S strategies to enter India can be identified and adjusted accordingly. NV
must distinguish its position by analysing its strengths and weaknesses as there will
be an impact on long-term profitability.
Threat of New Entrants – Medium to High
The rising and onset of the e-commerce industry, with the entrance of Flipkart,
Snapdeal and Amazon which out-sourced logistics services to deliver goods
purchased by customers has helped companies in India to set their foothold in the
logistics industry (Agarwal, 2017). In November 2017, the government of India had
allowed e-commerce start-ups to sell goods in the global markets at a competitive
price upon granting the infrastructure status to the logistics companies. The grant has
increased the competition among the conventionally ran companies and new
companies that are more advanced in technology (Abihshek, 2019).
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