From a cultural perspective, the Indian population is highly different from the American one. The people are more conservative and might find it difficult to accept foreigners. However, since the Exceed Corporation is focused on offering their consultancy services to state institutions or the Indian government, they would have little to do with the general population. And also, the Indian citizens are more and more oriented towards the liberalization of their economy. The language barrier would be barely existent since the large majority of the Indians speak English. "English enjoys associate status but is the most important language for national, political, and commercial communication" (Central Intelligence Agency, 2008).
However still underdeveloped, at least in comparison to the United States, the communication systems and transportation networks have been met with major improvements during the past few years, developments which would ease the American company's penetration of the Indian market and would support them in conducting business. The telecommunications are basically centered on highly populated urban areas and the most commonly used gadgets are the mobile and fixed phone. "Recent deregulation and liberalization of telecommunications laws and policies have prompted rapid growth; local and long distance service provided throughout all regions of the country, with services primarily concentrated in the urban areas; steady improvement is taking place with the recent admission of private and private-public investors, but combined fixed and mobile telephone density remains low at about 20 for each 100 persons nationwide and much lower for persons in rural areas" (Central Intelligence Agency, 2008). The increased interest young Indians have for technology has supported and will continue to support technological advancements in India.
From a transportations stand point, India possesses a total of 346 airports, out of which 250 have paved runways and 96 have unpaved runways. They also possess: 30 heliports; 63,221 kilometers of railways; 3,383,344 kilometers of roadways; 14,500 kilometers of waterways and 477 merchant ships (Central Intelligence Agency, 2008).
All in all, the Indian government has instituted numerous barriers to entering the market based on their desire to protect local manufacturers and the domestic economy. However some of these regulations have been abandoned throughout the years due to the intervention of international regulatory institutions, most importantly the World Trade Organization, some still stand. And regardless of how the America service provider feels about these restrictions, they must comply with them in order to retrieve a successful outcome from their operations in India.
3. Product/Service Standards
The product/service standards are those promoted through the Agreement on the Application of the Sanitary and Phytosanitary Measures (SPM) and the Agreement on Technical Barriers to Trade (TBT). These regulations have generally been implemented to protect the safety of the Indian consumers and the general population through the protection of the national economy. "The SPM Agreement gives a right to take sanitary and phytosanitary measures necessary for the protection of human, animal or plant life or health, provided that:
such measures are not inconsistent with the provisions of the Agreement;
they are applied only to the extent necessary;
they are based on scientific principles and are not maintained without sufficient scientific evidence;
they do not arbitrarily or unjustifiably discriminate between Members where identical or similar conditions prevail including between their own territory and that of other Members, and they are not applied in a manner which would constitute a restriction on international trade" (Gupta, 1997)
The regulations, however justly intended to protect the Indian consumer and economy, are not applicable to all products imported, but can easily be adapted to meet other protectionist needs. Take for instance the particular product requirements in regard to proper labeling. It would be rather difficult to apply the same requirements for a service, but in order to make sure one complies with the regulations, they must adjust. In other words, the Exceed Corporation must ensure that their services are properly promoted, presented, placed on the market and delivered to the end consumer. Therefore, the major recommendation the Exceed Corporation must keep in mind is to make sure that they, at all times, comply with the regulations implied by the Indian authorities. The American company may not always understand or agree with the standards, testing, labeling and certification requirements, but they must adjust their internal policies in order to subject to them. For the success in a foreign country is not based solely on the core competencies and high quality of the services delivered, but also by the company's ability to adapt to the particular needs within the country and adjust to the regulations imposed.
The Exceed Company would offer the same products in India as they do in their homeland, adjusted of course to the demands and requirements of the hosting country. It would be however improbable that the American consultant be...
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