Developing Countries and India Inc.
My friend gave me some food for thought by writing this. He has brought out a point that developing countries hold an edge on the developed nations.
If we are looking at a country like India things may sound ok as India is growing exponentially and has come out very strongly on world map as one of the biggest service industry. But many of the other countries in African, South East Asia and South American continents have long way to go as in term of education, infrastructure etc.
There’s a theory that goes like this: As a developing countries tend to grow at a faster pace the money gets pumped into the economy. As people have more money to spend, consumption inside the country grows. The companies thus in various sectors grow positively. New market leader emerges, various smaller companies supporting the primary industries also gains. So all in all we see a rapid positive movement everywhere. Which is what i believe India is going through now. There’s a sense of pace in the economy, a wave of growth.
Many of the companies growing locally try to break internationally and expand their market. This is the time when reality of economics hit.
Does these companies have enough fund and international backing to come out as a competitor? Secondly do they have something new to offer which can change the market dynamics.
Most of the companies making big have played more like a clone to an already existing companies providing similar kind of goods and services. Many of the companies in India and other countries have grown to be a service provider to huge MNCs, who are while you are reading this are actually shaping the world. These service providers no doubt have made big impact on the MNCs growth, but does it itself has the potential to imagine similar growth for itself.
They may have right management, a right product but then everything again boils down to 2 facts Money and backing.
Sometime it is hard to believe that a country living on aide from a developed countries and world bank, produces a company which can emerge as a challenge to big international companies.
But then is the dream impossible?
The dream of making big may be a bit difficult but is not impossible. As in India we have big companies coming out like Infosys in Software, ICICI Bank, Reliance in telecom and petro. They have really made extraordinary growth in last few years. many of the other companies are putting their foot in the international biz either by acquisitions or launching their own offices. Many of these companies have right market strategy and right aggressive management. And I don’t think that day is far when we can also have a truly MNC head quartered in India which will be shaping new market strategy.
If we are looking at a country like India things may sound ok as India is growing exponentially and has come out very strongly on world map as one of the biggest service industry. But many of the other countries in African, South East Asia and South American continents have long way to go as in term of education, infrastructure etc.
There’s a theory that goes like this: As a developing countries tend to grow at a faster pace the money gets pumped into the economy. As people have more money to spend, consumption inside the country grows. The companies thus in various sectors grow positively. New market leader emerges, various smaller companies supporting the primary industries also gains. So all in all we see a rapid positive movement everywhere. Which is what i believe India is going through now. There’s a sense of pace in the economy, a wave of growth.
Many of the companies growing locally try to break internationally and expand their market. This is the time when reality of economics hit.
Does these companies have enough fund and international backing to come out as a competitor? Secondly do they have something new to offer which can change the market dynamics.
Most of the companies making big have played more like a clone to an already existing companies providing similar kind of goods and services. Many of the companies in India and other countries have grown to be a service provider to huge MNCs, who are while you are reading this are actually shaping the world. These service providers no doubt have made big impact on the MNCs growth, but does it itself has the potential to imagine similar growth for itself.
They may have right management, a right product but then everything again boils down to 2 facts Money and backing.
Sometime it is hard to believe that a country living on aide from a developed countries and world bank, produces a company which can emerge as a challenge to big international companies.
But then is the dream impossible?
The dream of making big may be a bit difficult but is not impossible. As in India we have big companies coming out like Infosys in Software, ICICI Bank, Reliance in telecom and petro. They have really made extraordinary growth in last few years. many of the other companies are putting their foot in the international biz either by acquisitions or launching their own offices. Many of these companies have right market strategy and right aggressive management. And I don’t think that day is far when we can also have a truly MNC head quartered in India which will be shaping new market strategy.
Labels: Tech
posted by Yogesh at
1:48 PM
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