MGT301 Principles of Marketing Assignment 1 Solution Spring 2013

TOPIC: Market Analysis & Selection through Strategic Planning
Learning Objective:
The objective of this activity is to apply the concept of market analysis and
importance of market characteristics in launching business in new market.
Learning Outcomes:
After this activity students will be able to understand that how different factors
affect the decision of a business to enter into new country market.
Students will also learn that how & why to prefer one country market to other.
Company Profile:
Inspire Group, ranks among India’s top three private sectors business houses in terms of
net worth. The group has business interests that range from telecommunications (Inspire
Communications Limited) to financial services (Inspire Capital Ltd) and power
generation (Inspire Infrastructure Limited). Inspire Group’s leading company, Inspire
Communications, is India’s largest private sector information and communications
company (after Bharti Airtel. Established in 2004), with over 150 million subscribers. It
has established high standard and quality in communication and information networks.
It statuses among the top 5 telecommunications companies in the world by number of
customers in a single country. Inspire Communications Company covering over 24,000
towns and 600,000 villages. Inspire Communications owns and operates the nextgeneration
IP-enabled connectivity infrastructure, comprising over 190,000 kilometers of
fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.
THE FOREIGN ENTRY PROCESS: A CRITICAL ANALYSIS
Inspire Co. is a famous company working in India for so many years. Inspire Co. has
very diversified portfolio and working in different segments. Company has the dynamic
work force, capable enough to adjust themselves in different capacities and able to work
in any environment. Top management including CEO, Mr. Aakash Bohmani, and all
directors have decided to make new office either in Sri Lanka or Maldives.
Sri Lanka has grown tremendously in telecom sector during last few years, especially
after recent increases in export of yarn and textile. GDP growth rate is also high as
compared to the last year which shows that it will continue to grow in coming years.
On the other hand, Maldives has more established economy, with a very consistent
growth in GDP. Law and order situation in Maldives is also better than Sri Lanka. Like
Sri Lanka, Inspire has joint venture in Maldives as well with Wataniya Telecom
Maldives.
REQUIREMENT:
On the basis of economic and demographic indicators, make a complete comparative
analysis for both countries and suggest company that which country is better for entering
into foreign market? (20 marks)
Marking Scheme: 08 Marks for each comparative analysis of both countries based on
each factor and 04 marks for the decision supported by logical arguments.