Mkt week

Do you agree with everlasting(a)s market diversification outline? If so, what other markets should they go after? If you disagree, what should be their business focus? Diversification is virtually commonly understood through the financial world, where one should get down a diverse range of investments. Mixing gold that atomic number 18 countercyclical the performance of veritable funds is not correlated to the performance of others.Usually when one set of funds are down, the value of another set of funds is up. This is where companies like the Virgin Group have adopted this kind of strategy to diversify their fruit line. Dixon (2009) explains what when building a customer base, it is a good idea to engender cultivating multiple customers in different industries. Then, this approach is modified to include mark markets that have the countercyclical method that has been proven to work in the financial field.After targeting diverse groups of customers, companies (like the V irgin Group) should then engage in aggressive marketing and sales efforts to win new customers in the targeted markets (Dixon, 2009). In order for Virgin to pursue other markets they should 1) gain clear understanding of the wants and needs of perspective customers ND markets, and 2) show that they have a unique capability for meeting these requirements (Dixon, 2009). I believe the Virgin Group should get involved with renewable might projects, even on small scale targeting consumers.Sustainability and being green are hot topics right now that consumers like to get behind. Since they have so much information already on current electronics customers, they can expend this to target items like solar chargers or recycled material packaging for electronic items. 2. How about some other examples of companies that have built their value hint around the image variable? Other companies that have been successful are for example Apple, who undoubtedly has created value to its customers who are very loyal to the brand.Customers have it away the bitten apple image across the spectrum and identify it with quality. BMW and Mercedes Benz are other companies that have used their image to build value for customers. Whenever anyone prizes of these two brands, they immediately think luxury and high end/high quality vehicles.

Gender differences Essay

It could be said that to some extent the mass that processes within schools whitethorn lead to gender differences in educational acquirement is true. The theory of Inter motivateionist looks at the individual rather than society therefore it is a bottom up theory.Interactionist ask that the processes within the schools such as the conceal curriculum may lead students in gender differences in educational skill, as what happens inside the school which is unwritten is what influences the individual in educational achievement, not the formal curriculum or what is written rule such as the subjects which is being examine influences the student to achieve. The sociologist Goffman explains that everyone in society is presenting the self in everyday life.What he means is that everyone is a creature of society and not in control of what they say or do, but in fact they are attached in strings and act for example in play, such as a female may play the role of a mother at home but play the role of a student at school. Some argue that the structure and settings of schools, generally creates gender differences in educational achievement, for example the culture aspect is that the students are socialised into tolerable forms of doings pupils are give drill in how to move approximately the school, sit in desk, suggest handsthe puritan of hard work, sober living and good discretion is continuously urged upon them. This socialisation naturally created gender differences as males are seen or expected to behave in classrooms in the manner of masculine while females are seen or expected to behave in feminine behaviour or otherwise it could be considered left over(p), and therefore the students who do behave odd are looked at differently or called deviant.The sociologist Postman and Weingartner, studied that the hidden curriculum consisted of discovering that knowledge is beyond the power of students and is in theme none of their business secondly recall is the h ighest form of intellectual achievement and therefore the collection of facts is the goal of education the voice of authority is to be trusted more than independent judgement feelings are irrelevant in education turn backive acceptance is a more desirable response to ideas than active criticism.This study proves that the individual does not play in an principal(prenominal) role but rather how to survive the school and just pass the exams was important and therefore not keen on which gender is knowledge or how but on how they should just pass the time in school and move on as education is not about the self but on facts and memorising, and not understanding. As a provide it could be said that the study of classroom interaction is the idea that the mankind of the classroom is a negotiated reality. For students and teachers, the hidden curriculum consists of learning how to survive in the classroom.

Prisoner’s Dilemma Essay

The idea of prisoners dilemma promoted by Axelrod has take a crapd different levels of recital of relationships revolving around the internationalist arena. The idea which originated from the rational choice discipline has paved the way for alternative explanations in the practice of governance in the anarchic arena. Due to protective covering issues prevalent in the international arena the archetype of prisoners/security dilemma comes into the picture. According to (Mc-Graw Hill Companies, 2005, p.3) security dilemma arises in any case when we dont assume that nations and their leaders are inherently evil, war-mongering people. In addition, the lack of trust and pursuit of relative gains among members of the international community paved the way for such actions among res publicas. According to (Mc-Graw Hill Companies, 2005, p.7) if trust is lacking on that point is likely to have strong relative gain concerns. Thus, there is a need of continuous information sharing, cons ensus, and trust among members of the international community. With the application of this get out the issue of security dilemma be projecting. According to (Mc-Graw Hill Companies, 2005, p.8) security dilemma can arise between states in the anarchic international system due to lack of trust, misperception, and miscommunication, and the inherent ambiguity of every states attempt to acquire military power to survive. One compositors case in catering and addressing the challenges posed by security and prisoners dilemma is the induction of institutions that will foster the mechanisms and processes to alleviate the idea. It must be able to create communication measures, pave the way for trust to occur between states and light and monitoring that will enhance the distinction of offensive and defensive purposes. With these initiatives, the shun setback created by security and prisoners dilemma can be alleviated and prevented. In this light, cooperation may be possible.Work CitedMc- Graw Hill Companies. Prisoners Dilemma 2005 accessed declination 10, 2007 on-linePowerPoint Presentation.

Shangri-La Hotel and Resort

pic Prepargond By Yee Shan (Sarah) CHUNG, Yan Sin (Jessy) LI, Kim Sang (Anson) HO, Kit Yat (Donald) Thai Table of Contents 1. Introduction3 2. synopsis of Macro Environment4 3. synopsis of perseverance Analysis8 4. Summary of Internal Analysis12 5. Gap Analysis14 6. Recommendations22 7. Appendices26 8. references52 1. Introduction Since the p arnt company, the Kuok Group, is established in 1949 and until 1979 the home- experiencen paradise Hotel, Singapore, was opened its doors in 1971 and it was opened under the management of Western external Hotels.However, paradise foreign Hotel Management Ltd was founded in 1982 and from that time until now, Shangri- La endeavoured d unmatched count little challenged from the Asian financial crisis to the outbreak of SARS in 2003 and a lot of another(prenominal) challenges, Shangri- La Hotels and Resorts (SLHR) recently was announced and located its properties autopsy city addresses and whatsoever of the earths most exotic destina tions across Asia, Middle East, north America and Europe. As of 2006, SLHR was the bouffantst Asian free radicald deluxe hotel congregationing in Southeast Asia.The company managed a amount of 50 hotels under terce shits the v-star enlightenment, the intravenous feeding whatsoever-star Traders and Kerry with total inventory of over 23000 rooms across 39 locations. Further much, SLHR a ex channeliseable join the stock securities application of Hong Kong, Malaysia and Thailand. As of SLHR mission statement To de atonic our guests every time by creating engaging experiences straight from our heart, SLHR in any case produce invigo calculated proceeds antitheticiation much(prenominal)(prenominal)(prenominal)(prenominal) as Chinese theory spas which named the Chi in most of its disposal.The success of SLHR does non debar at that place expanding its merchandise or join on their inventory, but the management ever much than than concern its competitors who n ates subscribe to the better(p) crop and service base on SLHRs ones. SLHR management as well requires having st outrankgies for long term belongway the organization. The aim of this st footstepgic analysis report is to realize vision for organization in coming(prenominal) by identifying and analysing the major macro- environsal trends which believe the major issues proceed to the future growth of SLHR.The report also quickly examines the five forces inside the patience analysis to rough idea the current effectiveness of the effort and also based on evidences to expect the future profitability of SLHR. Besides, to pass water the advantage competitive of SLHR, all of internal outgrowths in term of resources and capabilities could inspect. Moreover, to piddle an overall the difference between the desired situation and the real(a) situation of SLHR, a gap analysis forget be chief out for bringing all analysis together and base on this analysis gap, organization impar ting bear an overall difference.Lastly, it is definitely not absent in this report pass oning be a constitute of recommendations which overhaul formulating for SLHR in relation to achieve to great its position in all foodstuffs in the future. 2. Summary of Macro Environment Macro purlieu or PESTE analysis is the first step in creating the Environmental Analysis. The macro environment examines the general avocation climate as it relates to the giving medication, but the governance has nothing to do with it. It has an impact to incline paradise Hotels by four different factors, such(prenominal) as Political or Legal, scotch, Socio-cultural, Technology and Environmental.These four factors had been analysed in the Appendix 1, which is based on the Shangri-La over the world. The worldwide economic has more negative factors that impact the Hotels, Global pecuniary Crisis straight off is one of the big issues for most of the industries around the world, as it leads rece ssion which leave view the finance of the countries or industries. Beca recitation of the Global Financial Crisis, the unemployment rate of roughly countries is tranquil growth in the beginning of 2012, such as Euro commonwealth increased to 11%, Italy increased to 10. 0%, Spain and Greece has increased over 20%, but some of the countries atomic number 18 fall such as Japan, Thailand, joker and Hong Kong(Trade Economic, 2012). The unemployment rate is increasing beca physical exercise of the constitute of labour is increasing as puff up which the current financial situation is not veracious enough to support. slew atomic number 18 more concern on price or father price sensitive now because of global financial crisis, as they leave alone call back the convergence is worth with the listed price or not.Some of the countries had announced nose corporationdy Tax scheme which al mild affect the hotels, as every organisations enquire to pay a certain amount for the ca rbon that they produced. These negative factors whitethorn leads the guests rarely go cash in ones chips and stay in hotels because they fork up less income, as the net income of Shangri-La Hotels Group had decreased to $253. 0 one thousand thousand (Bloomberg Business Week, 2012). However, the Gross Domestic Product around the world is increasing while the inflation is decreasing in most of the countries. Same as the Economic factors, the Political also has more negative factors impact the hotels.Over 90% of the countries had established a legislation of minimum wages, the legislation is to prevent the employers when at that place is the intense market competition and they in order to guide be, at the same time the wages of the employees are unavailing to equal their atomic number 50onic enquirefully. On the recent years, there are some conflict occurs between nations, for example, there was two attackers rammed a border post with a scum truck and threw two grenades, a nd then attacked policemen with knives in Kashgar, Beijing and a roadside bomb explosion in Diwaniyah.The most recent hotel bombing is the Marriott capital of Indonesia bombing in 2009 because of terrorism which leads at least 9 battalion killed and 50 raft injured. For a hotel chain as Shangri-La, the properties are all over in the world, they need to prevent and consider slightly the locations political issues before or after they take over or establish a refreshed Shangri-La. On the other hand, some nations baffle a legislation to authority the people own arms or guns. But when the estimates of arms retentivity increase, the country and properties need to increase the insecurity as well (Shah, 2011).By having legislation of arms controlling is acceptable for Shangri-La. As in 21st Century, everything is being graduate(prenominal) engineering science which core there are lots of immature technology overlaps invested and announced into the market such as 3D televisi ons and surrounding audio systems. When those products had announced to public, the guests whitethorn expect the hotels leave alone wealthy person one of these products in house. Most of the technology factors are neither positive nor negative impact for Shangri-La, as the number of the net income users is increasing rapidly every year, nearly everyone pass on shit at least one computer and smartphone.When most people eat up at least one technology product, some of the companies will start produce some up-to-date communication softwares and some peeled applications will announce to the sociality. By the time when the number of internet users is increasing rapidly, Shangri-La fag take advantages from that, as they can do marketing via internet, peculiarly the social networks (e. g. Facebook, Twitter, Myspace). The guests can book a room via their official website or some work agents website, and Shangri-La can announce the latest tidings on their official website and socia l networks for the guests to read.For the sedulousness, the socio-cultural has average impact. As the population in the world is increasing which is chargeworthy for all the industries, there are more consumers to consume their products. But at the same time, the fluctuating death rate is increasing which is the age population is increasing as well, because the medical technology has been improving year by year, the people will adjudge extended life than the past. Most of the people will expect a better quality of life, such as for living and for travelling, they would homogeneous to contribute in effect(p) experience on everything, especially on travelling and accommodation.Multi-cultural is a good for the handicraft as well, because Shangri-La can adopt the culture and develops a different experience for the guests, for example, in India, Shangri-La can excogitate an Indian style hotel to cater and adopt the environment to curl up the guests to stay in. However, because of different culture and the religion of the culture, they need to generalize and get known about these before they establish the hotel in a country or city. In addendum, there are several environmental issues that affect the effort, for example, natural disasters will occur in some countries such as Earthquakes, Floods, Tsunamis and Hurricanes.Nowadays, natural disasters had experience more serious and more often, because of the climate change within a decade and global warming, ozone depletion are caused primarily by increases in babys room gases as Carbon Dioxide. delinquent to the natural disasters and the global warming, the lands will be destroyed and lead land shortage. Land shortage will influence Shangri-La as there is no enough land for it to manufacture new hotels, it can contrive them could not expand their business.While they embodimenting new hotels or running existed hotels, pollutions will be produced, for example, building new hotels will produce lots of dust and the lighting of running existed hotels as the light will open 24hours 7days. On the other hand, 3Rs policy has been announced as Reduce, Reuse and Recycle, the government encourages people to reuse and recycle the products that they used. According to capital of Nebraska (2007) Shangri-La have a wide of environmentally friendly measures such as fitting all guestrooms with water saving device in taps and showers as well as apply push button-saving lamps in more than half of the pigeonholings guestrooms.For saving energy and resources, Shangri-La has intermixture of methods, as by rainwater harvesting, hot water production using solar panels or heat pumps and improvements in building envelope design to cut off heat loss or heat invite as well as air filtration. Shangri-La also has several methods to crucify the kibibytehouse gases, such as through active systems and processes, the use of new technologies and substitute(a) energy sources and by building more efficie nt buildings. In summary, the luxury hotel industry has opportunities and panics associated with the macro environment. There is variety of positive, balanced and negative trends.There are still opportunities for reasonable growth in this industry disdain the threats. 3. Summary of manufacturing Analysis Industry environment has a more direct effect on the firms strategic combat and ability to earn above-average return as canvass to the general environment (Misangyl et. al, 2006). Hitt et. al (2011, p. 51) mention Industry analysis will be using the five forces model of competition such as the threats posed by new entrants, the motive of suppliers, the originfulness of buyers, product substitutes, and the intensity of arguing among competitors to understand the profitability dominance within the industry.The strength and interaction of the five competitive forces are what influence profit effectiveness. This section will debate about the industry analysis of hotel indus try and a more precise analysis can be seen in Appendix2. The threat of entrants in the hotel industry is not significant which leads to high industry profitability. New entrants need to have sufficient amount of budget in order to build and run the hotel such as require certain upfront investment in building, specialized equipment, infrastructure and staffs.Products and go are well to replicate in hotel industry, therefore, brand identity is the differentiator in the hotels. It is difficult for new entrants to gain access to the capital requirements necessitate to develop and build hotel. The industrys incumbents have established relationships and experience, which enables them to achieve significant cost savings. In addition to brand inscription and be the new entrants must also get by with the probability of retaliation from the established hotels. The xisting businesses in the industry have a high item of absolute cost advantages as they have create good relationship a nd trust between the suppliers and customers. The number of suppliers to the hotel industry is extremely high. The types of suppliers for hotels include structure suppliers, monopoly suppliers such as electricity, gas and water, furniture suppliers, linen and bedding suppliers, food suppliers, decor suppliers, appliance suppliers, uniform suppliers and most importantly then staffs. The suppliers have medium talk terms condition which will affect the attractiveness and profitability of the industry.There is high submerging of suppliers. However, the majority of hotels have regional weightlifts with suppliers. This locks the hotel companies into using certain suppliers and creates duty perioding be. The hoi polloi being sold to the industry is important to the in the buff materials sources suppliers and equipment manufacturers because hotels will purchase in bulk to assure the business. Contracted suppliers be and employees costs are high because they are needed to work for the operation of the business. These suppliers have high bargain power.However, they are unable(p) to bargain and will make close to their best offer at the first chance in order to gain profit for their business. speciality of outputs from suppliers is necessary to deliver surgical operation in order to be more profitable in the industry. Hotels and resorts are part of the accommodation in the dwell industry. Rooms are highly perishable products. There are other options to stay when the customers are international from home such as apartments, condos, cabins and town houses. emptors have high talk terms power in choosing the accommodation that they would kindred to stay.Hotels can create distinction strategy to add rank to attract customers such as dealing with the pricing strategy, good customer operate and nominate up-to-date technology in the hotels. However, there is high denseness of buyers telling to the industry. There is very little threat of backward desegregation from the consumer due to the high costs of start up in the hotel industry. Hence, when the buyers have medium to high bargaining power, then the industry profitability will be suffering. Substitutes to the hotel industry have a high aim of power which leads to low industry profitability.There are a lot of substitutes in the industry. leisure time customers have more alternatives when they travel overseas as well as business customers, they can plan whether to fly to a city in order to have meetings. Nowadays due to the advance technology invented, lucre helps the business people a lot. Business man can do video-conferencing in their own country without flying to other country. This helps the business to save a lot of silver. In regards to leisure customers, they have more choices to consider such as staying in boutique hotels, motels, apartments, camping, cruise ships and even caravan.Substitutes gave greater power. The substitutes can provide similar services a nd products and providing better value for money which make economic sense for buyers to append. The intensity of rivalry in the industry is medium to high which leads to low industry profitability. Hotel industry is in progress stage, there is no industry growth. With the increase of competitors such as the elaboration of luxury Asian brand Mandarin Oriental, it makes it difficult for the hotels in the industry to maximize its profit by strengthening its occupancy rates.The high cost of building, furnishing and servicing the hotels in the industry create high fixed costs and high exit barriers. This increases rivalry as they need to maximise winnings to have significant returns on investment. It makes it difficult to withd unprocessed from the industry and has to compete with other existing rivals. The aim of variety among the companies is medium because the majority of the hotels provide similar types of high quality service. Due to this reason, it is easy for buyers to swi tch from one competitors product to another.While there is great rivalry in this industry, there are opportunities for expansion into national and international markets. Moreover, there are many stakeholders involved and bombastic dollar investments, thus, it involves high commitment from every members in the organisation. general, analysis of the five forces in hotel industry found out that hotel industrys attractiveness is rated as medium-low in terms of the potential to earn adequate or pukka returns.It is considered as a partly unattractive industry because it has low entry barriers, medium to muscular bargaining position of suppliers and buyers, fond competitive threats from product substitutes and intense rivalry among competitors. 4. Summary of Internal Analysis Internal analysis is an analysis about the organisation itself, it finds out organisation resources and capabilities to create value to customers and identify area of weaknesses to be addressed by future strateg ic and evaluate core competencies (Evans, Campbell and Stonehouse, 2003).Acknowledging those resources and capabilities can understand company position and competitive advantage to achieve superior performance and profitability by strategic (Hill and Jones, 2012). Resources Tangible nirvana group comp rising slopes 110 hotels and resorts throughout Asia Pacific, North America, the Middle East and Europe. In future development more than 20 hotels and resorts will be create in variety countries. Revenue has maturation up nearly a keister from 2009 to 2010, US $1,729 million to US 2,145 million.But, Share of profit of associates of hotel operation total is 15. 0, and property rentals total is 47. 7. Intangible Shangri-la group has great disposition in public, goodwill value is US $84,504,000 in 2010, because create green chain of mountains to public, Sustainability is umbrella brand which has several action to rationalize energy phthisis, waste water and carbon dioxide emission. It shows the low turnover rate, this is because company pays respects, cares and certified their employee and provide work-life balance program to motivate staffs to work productively and efficiently.Capabilities It has strong human resource capabilities which is compare to others hotel property, the staff turnover rate is low, Shangri-la provide a series training to staff ensure rag service consistency that ensure meet the expectation of service quality, so this is the competitive advantage. The dissemination channels are strongly developed, it has several internet distribution channels, e-commerce is the best way to deliver and see information nowadays.However, the product differentiation, marketing and management are not strong enough to be core competencies. 5. Gap Analysis Macro-environment Business Strategy Gaps Trend see to it of concussion Business Strategy match or Mismatch Economic Growth in Asia 1-5 years hold Currently Shangri-La group is focusing on developing the (especially in China) market in China. Euro economic crisis 1-5 years Match Europe is not an essential market instalment for the Shangri-La group and does not have big influence on the hotel financial performance Increasing value of Chinese Now and current Mismatch As the exchange rate of RMB is getting high, tourists RMBs favour going to other Asian countries while China is the of import market for Shangri-La Green Awareness Now and ongoing Match Shangri-La really makes an effort on sustainability, creating a green organisation image to the public and gaining goodwill from that. Use of Technology Now and ongoing Match Shangri-La deceases significant resources on network promoting, for example customer can book a room through Shangri-Las Facebook change magnitude Target Demographic 3-5 years Mismatch Even Shangri-La group has other brands like Traders and Segment Kerry, but the target market is also focusing on up-scale market. Industry Environment Business Strategy Gaps Industry Environment Element luck of Threat Effect on Industry Profitability Business Strategy physical structure or Inconsistency suppliers inborn Average Consistent purchasers Threat juicy Consistent Threats of New Entrants Opportunity elevated Limited Consistency Substitutes Threat gamy Limited Consistency Rivalry Threat High Consistent Government Opportunity and threat Various by Location Some Consistency Complementors Opportunity scummy Limited Consistency Key competitor Business Strategy Gaps Competitor Physical Brands Decision Making Values ECONOMIC FACTOR time out proscribe Global Finance Crisis, spend money discreetly (Shah, 2010). neat & Service Tax, spend more money in good (Kalia, 2010). Negative Some of the countries had announced Carbon Tax which increase expense ( piece tidings Australia, 2012). Negative Gross Domestic Product is increasing which stimulate people spend in hospitality (The Economist Online, 2011). overbearing People are more concern on price due to Global Financial Crisis Negative High Labour cost, especially in China grow up rapidly fast. The inflation in most of the countries are decreasing , China still growing so fast (Global-Rates. com, 2012) Negative The unemployment rate in most of the countries are decreasing (Trading Economics, 2012) ordained Negative (China) Positive Overall Negative POLITICAL/LEGAL FACTOR Around 90% of countries had established a legislation of minimum Negative wages that increase labour cost extremely (Herr and Kazandziska, 2011). Conflict between nations, it is not condom for travelling that Negative influence hospitality industry (Global Conflict Map. com, 2011)( The World Bank, 2011). Arms control in some nations, limit import and exporting goods (Shah Positive 2012).For instance, North Korea has strict control r ules in hospitality industry. Overall Negative TECHNOLOGICAL FACTOR Growth of profit with fast wideband can assists consumers to Positive search for rooms available via websites. They can make reservations advantageously which help the costs of industrys marketing activities. talk software or technology improved every year such as Positive Facebook and Twitter are Social Medias for marketing. Many new technology products announced into the market, energy Positive saving light reduce pollution. For example, the installation of solar energy system in hotels which can help saving the budget of the company. Overall Positive SOCIO-CULTURAL FACTOR Fluctuating close Rate which mean age Population is increasing Negative (Population Reference Bureau, 2011). Expectations of service quality. Consumers now expect to get intangible experience and require to be recognized by the employees. Negative As long as the industry keep up the s tandards with what the customers are expecting then it will bring positive effect to the industry. The number of population is increasing over the world it increases the workforce and potential customer (Rosenberg, 2011). Positive Multi-culture around the world, allow familiarity and technique exchange. Positive Overall Balance ENVIRONMENTAL FACTOR great awareness in global warming issues is a concern.Energy Negative consumption needs to be considered to reduce greenhouse gas. The most cost-effective greenhouse gas reductions can be made by using existing low technology in building insulation, lighting, air-conditioning and water heating systems and electricity standby (Enkvist et. al, 2007), (Fenger and Tjell, 2009). Climate change (Shah, 2012) & Global Warming (National Geographic, 2012). For example, mountainous areas reduce snow cover and winter tourism southern areas decrease pass tourism period. Negative Water use management, reduce water use is a long-term strategic. (Queensland Government, 2012) Waste disposal management, Use filters in abstruse fryers to extend the life of cooking oil or sale to driver(Lincoln, 2007) indoor(prenominal) air quality, more countries forbid smoking in indoor than Positive last decade(Lincoln, 2007) 3Rs (Reduce, Reuse, Recycle) reduce waste cost in daily operation. For instance, use mugs to or else of disposable cups (USA Positive Recycling Facility Service, 2012) Some countries whitethorn need to face the natural disasters, e. g. Earthquake, Tsunami, and Hurricane (Shah, 2011). Negative Land Shortage in nations, less land available, so the cost of land is become expensive. For example, rise around 9% of the total Positive property price, since 2001 in Australia (Hopkins, 2012),(Asia for Educators, 2009), (Your investing billet, 2012). Negative Negative Overall Negative 2. Industry Analysis Forces Issues Impact Threats of new Economies of scale forte entrants New entrants need to have a certain large-scale production and huge finance because hotel industry requires substantial upfront investment in building, specialized equipment, infrastructure and staffs. Small lodges will find it difficult to enter to the industry and compete with Shangri-La Hotels and Resorts because it requires large investment, however, the other well-known brands hotels such as Marriot International, Hyatt and Hilton cleverness find it easier to build new hotels. Proprietary product differences sensitive Product differentiation in hotel industry is low. It is relatively easy to replicate differentiation such as the products and services. Every hotels and resort can provide rooms that meet the demands of the customers and also train their staffs well to provide personalized service. However, Shangri-La Hotels and Resort have built good b rand and reputation thus, it is the differentiator to compete with other new competitors. Brand identity moo Shangri-La Hotels and Resorts have built a good brand image in the mind of customers. Shangri-La Hotels and Resorts is already the leader in Asia (Dogan, 2010). They have established high product differentiation and brand loyalty.Other new brand hotels that want to come into the industry, they have to spend lots of costs to attract the customers to be competitive advantage. Buyer/customer substitution costs Medium It is simple and easy for customers to switch costs. Customers can be easily attracted to different hotels that offer more value for money, or affordable prices. Due to the presence of Internet, customers will search and compare the hotels price via websites. Loyalty program can prevent the guests from electric switch costs. Capital requirements Low High capital requirement is required for new entrants even though the compet itors plan to do franchise, merger and acquisition, there is still high investment costs involved such as costs of inventories, high risk and law return situation and marketing activities. Hubbard & twinkly (2011, p. 76) state New entrants with good ideas but without finance are unable to break into the industry. Access to distribution Low New entrants may have limited sources to access such as altogether materials and distribution channels, as existing hotels have regular customers and partners. Absolute cost advantages Low The existing businesses in the industry have a high degree of absolute cost advantages.They have built good relationship and trust between each others already establish hotels experience, favourable raw materials, advertisement expenses and favourable location. Thus, it is hard for new entrants to enter into the industry because there is low level of trust and familiarity with the suppliers. Government policy High Depends on the countrys regulations, government has the opportunity to set many restraints in the industry or encourage and facilitate the development of hotels. Expected retaliation High Retaliation is expected as existing hotels will low down price and promotes some packages to attract customers. Unique and differentiated products by diversifying it can therefore persist the retaliation. boilersuit RATING LOW strong suit Bargaining power of Differentiation of inputs Medium supplier Suppliers input is crucial to the final product. Good quality of the products and services provided by the suppliers will create a good outcome.Hence, it will have to progress the economy of the business. Hotels in the industry are the buyers and the producers of inputs that are the suppliers (Buffett & Munger, n. d). There are many suppliers involve in hotel industry such as The construction companies tend to have a particular strong position when it comes to the hotel possessor who would like to build a hotel. Thus, it strengthens the power of being a supplier. Monopoly suppliers who control electricity, gas and water supplies have high bargaining power. Hotels need to spend lots of money in the operational costs. Hotels need to buy Property Management System and Point of Sales to help the effectiveness of business operation. Hotels also need to buy amenities products, chemical products and raw materials for catering. Moreover, it needs to spend money on maintenance and servicing the equipments.If the hotels are locked into a contract, then the power of suppliers will be lower, they cannot increase the prices when they want to. Hotels are in the service industry. Hence, it needs people to provide exceptional services to the customers. High education and good experience employees will have higher bargaining power. They may negotiate the wages that they would like to receive and they think is reasonable before w orking with the hotels. Hotel customers are fragmented. Hence, as a supplier to the customers, the argaining power is low because there are substitutes that the customers can accept such as Marriott International Hotels and Hilton Hotels. Switching costs of suppliers and firms in the industry Medium Suppliers have power if there are few firms supplying the product or if there is no reasonable substitute for it (VBulletin Solutions, 2012). However in large hotel chains, many things are done by signing contract legally. Legal costs may increase if one party is not working as per contract listed. Thus, the switching cost is low. Supplier concentration relative to industry concentration Medium There are high concentration of suppliers to choose from for Shangri-La Hotels and Resorts. Therefore, the suppliers have lesser power. Importance of volume to suppliers Low The volume being sold to the industry is important to the raw materials sources supp liers and equipment manufacturers because Shangri-La Hotels and Resorts will purchase in bulk to operate the business.Shangri-La Hotels and Resorts have a great deal of power over the suppliers when purchasing raw materials sources and equipments. Cost relative to total purchases in the industry High Supplier cost is a huge part of the total cost. Contracted suppliers costs and employees costs are high because they are needed to work for the operation of the business. Suppliers retain the power. Information about suppliers product Medium Hotels are highly aware of the quality of the products they purchase such as raw materials, equipments and even labour sources. Hotels will not take the risks to change the suppliers before they did research and compare the market price among the suppliers industries. Supplier profitability Low Hotel industry has higher profitability as compare to the supplier industry.Suppliers will be unable to bargain and they will make close to their best offer at the first opportunity in order to gain profit for their business. Decision makers incentives Medium Hotels need to motivate their employees by giving incentives in order for them to provide good service to the customers. Hotels will do promotional packages when it is in low mollify to attract more customers to stay in the hotel. Threat of forward integration High Suppliers can sell their products via Internet and even to the supermarkets. They have the power to enter the industry (Hubbard & Beamish, 2011). overall RATING MEDIUM Bargaining power of Differentiation of outputs High buyers Customers determine the profitability of the hotels business by choosing which one they would like to stay with, they have high bargaining power to choose.Hotels create differentiation strategy to add value to attract customers such as Customers place products and pricing strategy at first. For instance, the hotels should plan for low price strategy during low season or include gratuitous goods for customers. Staffs provide good quality of service. Good geographic location which appliance the guests. Good atmosphere of the rooms and restaurants. Give service for disable such as have disabled rooms in the hotels which located in the first floor to convenient the handicapped people. Switching costs of buyers High Shangri-La Hotel and Resorts have created a loyalty program named Golden cycle to attract existing customers by earning points and then the customers can redeemed for hotel stays, dine or spa experiences at anyShangri-La hotel, resort, Traders hotel or Kerry hotel (Shangri-La International Hotel Management, 2012).Thus, this group of customers will most likely be repeat customers and choose to experience services from Shangri-La Hotels and Resorts. There are low switching costs for customers. Presence of substitute outputs High There is an importan t level of the industrys output has to the buyer. Hotels and resorts are part of the accommodation in the lodging industry. There are other options to stay when the customers are away from home such as apartments, condos, cabins and town houses (CarrHallCastle, 2012). Industry concentration relative to buyer concentration Medium Low Tourism industry is growing rapidly and the demand of hotels for customers increased. Travellers are highly concentrated relative to the industry, thus, the buyers do not have lots of bargaining power. Importance of volume to buyers High Large volumes of customers are expected to stay in the hotels because they are the main source of income for hotels to generate profit.For example, tour operators, who book thousands of customers into hotels, have a strong bargaining position and can demand lower prices from hotels. Rooms are perishable, thus, hotels must try to meet the occupancy level. Buyers have more bargaining po wer. Cost relative to total buyer purchases Medium Corporate customers efficacy invest large amount of money into the hotels when there is conference happens. They will reserve lots of rooms and meeting rooms. Therefore, they have more bargaining power. Buyer information about the industry output High Customers can survey on the best firms that offer great services. They can have assistance from the travel agents, corporate travel consultants, internet and haggling of let loose to determine where they can get the services that they would like to experience. Positive words of mouth will build good reputation and image to the hotel whereas magnanimous words of mouth will badly impact the business of the hotel. Buyer Profitability High Customers have the freedom to choose which property they would like to stay in and dine for. They will gain profit when they receive more services as compare to what they expected. They are still holding high bargai ning power. Decision makers incentives Low When there is a large group coming to stay in the hotel, hotel will provide a discount price. Threat of backward integration Low It is impossible for item-by-item customer to enter the hotel industry due to large investment required. OVERALL RATING MEDIUM HIGH Power of substitutes Relative price/performance of substitutes High Hotelmule (2008) states Continual developments in technology keep changing the potential threat from substitute products.Technological advancements in the internet make the overall market to be more efficient and at the same time expanding the sizing of the potential market and create new substitution threats. For example, video-conferencing has been used instead of holding a conference in hotel. Business customers tend to travel lesser. The substitutes for lodging such as camping, hostels and motels, the invention of cruise ships and trains causes travellers to have alternat ive choice when travelling to another country. Switching costs High It is easy for buyers to switch costs, thus, the substitutes have greater power. Buyer propensity to substitute High Substitute products or services will be a threat. Capon (2008, p. 63) states This can be achieved by the substitute being equally good and cheaper, or by it being equal on price, but offering a better product or more added value.When other lodges such as apartments, condos, cabins and town houses providing similar or equally good hold out and providing better value for money, it may make economic sense for the buyers to switch. OVERALL RATING HIGH Intensity of industry Industry growth rate High rivalry There is no industry growth. The hotel industry is in mature stage. Severe industry rivalry occurs. High fixed costs High The high cost of building, furnishing and servicing the hotels in the industry create high fixed costs. This increases rivalry as they n eed to maximise mesh to have significant returns on investment. Shangri-La Hotels and Resorts must sell more rooms to cover those costs and increase hotel market competition. Hence, it makes it difficult to immerse from the industry and has to compete with other existing rivals. Intermittent overcapacity Medium Due to there are a lot of competitors in the market, there might be a lot of rooms that are available and cannot be sold out. Product differences High There are no product differences because majority of hotels provide similar types of high quality service. Products and services in hotels are easy to imitate.It is difficult to reduce the rivalry through the differentiation of the products and services. Brand identity Medium-High Brand is important because through branding, a business can stand out of the crowd. People remember the organization and will choose to go to the well-known hotels as it can heighten the level of self esteem and be part of the social group. Shangri-La Hotels and Resorts have developed their brand name and are well known in worldwide. However, other hotel groups such as Marriott International and Starwood have great brand identity as well. Switching costs High It is easy for buyers to switch from one competitors product to another industry rivalry will be increased (Hubbard & Beamish, 2011). Thus, Shangri-La Hotels and Resorts create a loyalty program named Golden Circle to retain their customers. Informational complexity Medium-High Consumers can olfactory modality at rooms available in different hotels and compare prices online. Internet will have information about the price and service differences. Furthermore, some hotel websites provide virtual tours which introduce the guests about the real experience expending time in the hotels. There are also lots of travel websites such as trip advisor which provide guests review about the hotels. Informatio n is readily available on the Internet. Thus, industry rivalry is enhanced. Concentration and balance High Cline (n. d) mentions Hospitality customers increasingly set about predictable services that support their ability to move quickly and easily around the world. International hotel chains are expanding their business to meet the demand of the customers and to determine the way to be happy with their position in the industry. Hence, rivalry will be significant. Diversity of competitors Medium The level of diversity among hotels is medium because majority of the hotels provide similar types of high quality service. However, some hotels like Marriott International it diversifies its business into planning and organizing wedding events for the couple who would like to marry. Marriott provides free assistance from certified wedding planners and help with everything from selecting centrepieces to

General Motors SWOT Analysis

General Motors Corporation (GM) is primarily employed in the production of vehicles. It designs, manufactures and markets car, trucks, and different railroad carmobile parts all everywhere the world. GM has a strong note portfolio gives it significant competitive advantage. However, preserve decline in light vehicle gross revenue as a result of increasing durability of vehicles and weak economic conditional blackmail on the overall performance of the company.StrengthsGlobal armorial bearing, GM was the leading auto producer in terms of sales for 77 years until 2007. The condescension has grown its presence in the world and is now operating in 157 countries, while its Chevrolet brand reached world record sales (4.95 million units). primitive vision and strategy, after 2008 bailout, GM has experienced major changes and reorganized the track it does business. New members were appointed to the firms management team with Daniel Akerson as the CEO.He shook GMs bureaucratic org anizational culture and introduced impertinent strategy and visions to the business. GM became smaller but leaner and is becoming more. salubrious brand portfolio, GM currently sells 18 automobile brand to fill as many customer needs as possible. The most touristy brand are Cadillac, Buick GMC, and Chevrolet that sells very swell up in USA and mainland china. Chevrolet reached world-wide sales record and sold 4.95 million units in 2012. Strong presence in China, China is the largest automotive market and is an emerging economy that grows steadily. It is likewise the second largest market for GM in terms of vehicle units sold.An earlyish entrance into China, well performing partnerships and local Buick brand are the of import reasons why GM has a strong position in Chinas automotive market. Knowledge of home market, GM is the largest car manufacturer in US and currently holds more than 18% market share. This is in general due to extensive knowledge of US market and its cons umer. 4 well performing brands, GMs has one of the highest embody structures compared to all automobiles manufacturers. GMs Cadillac, GMC, Chevrolet, and Buick are among the best-selling brands in US and China and brings in more than 80% of all General Motors sales.WeaknessHigh damage structures, GM has one of the highest make up structures compared to all automobiles manufacturers. GM costs are control by its generous employee compensation and pension plans. Although GM has reduced its cost after 2008 it still has a lot to do to become cost competitive. Brand dilution, GM controls 18 automobile brands that vary in woodland and are sold in separate markets. With so many brands in sales, customers find it hard to identify which brand belongs to GM family, as but one of 18 brands carry GM letters.The result is lower GM brand awareness. Bureaucratic culture, before reorganization in 2008, GM was notorious for its rigid culture and structure. Since them, the company has made some cultural and geomorphologic changes but should poke out improving as it isnt as contiguous as it competitors in reaching to constantly changing environment. Car draw off, tolerate year, General Motors recalled 119,000 pickups due to missing hood latch. The same year it had to recall it Chevrolet volt and fix battery problems. Recalls are expensive and damages brand reputation, especially when the company announces them so often.OpportunitiesPositive attitude toward green vehicle, forthwith consumers are more aware of the negative effects (air pollution) caused by cars provide by petrol and diesel. Large quantities of CO2 emission intensity greenhouse effect, and negatively impact the life on earth, and thus, consumers are more plausibly to buy new crown of thorns and electrical cars that emit less co2. increase send away price, increasing fuel prices open up large markets for GMs hybrid and electric cars as consumers shift toward cheaper fuel types. ever-changing customer needs, by introducing new cars models, General Motors would be able to impinge on changing customer needs for smaller and more fuel-efficient cars. Growth by means of acquisitions, GM has successfully acquired many car companies in the past and should continue doing so to gain new skills assets and access to new market.ThreatsFluctuating fuel prices, due to increasing extraction of shale gas, future fuel prices should drop and hazard electric and hybrid cars less attractive. GM would treat the project of hybrid and electric cars as losses, rather than perspective future cars. On the other hand, steeping fuel prices would make current GM models less attractive to cost conscious consumer lower heart and souls of fuel. New emission standards, a new curl for stricter regulation on vehicle emission standards may negatively regard GMs finances. The corporate would have to invest large amount of money to comply with these new standards.Rising raw material prices, rising prices for r aw metals will lift the cost for auto manufactures and result in squeezed pay for the companies. Intense contest, for 77 years from 1931 to 2007, GM led global sales of vehicles, but lost its position in 2008 due to increased competition of cheaper and better quality cars, especially from Japan and South Korea. Exchange rates, China are GMs second largest market and the business earns vast net there. Exchange rate fluctuations threaten GMs profits if the dollar would appreciate against Chinese renminbi.

India Fashion

parry OF CONTENTS Page - INTRODUCTION Indias jut off natural spring prior? 3 1 INDIAS UNIQUE ECONOMY AN OVERVIEW 4 2 FACETS OF THE INDIAN ECONOMY 2. 1 India in the closing curtain decade 2. 2 Infrastructure 2. 3 Bureaucracy and Corruption 2. 4 Import tariffs 2. 5 Engineering aptitudes 2. 6 Entrepreneurship 2. 7 sof devilod imbalances and inflation 2. 8 Indian Political dig 2. 9 People 3 THE PATH onward 4 INDIAS behavior INDUSTRY TRULY GLOBALIZED? 4. 1 The way Industry 4. 2 The Indian room Industry 4. 2. 1 F constituentors humourish increment . 2. 2 Local and Foreign players 4. 2. 3 Fashion bedvas perseverance an example of Indias jut out emerging 5 5. 1 5. 2 5. 3 5. 4 5. 5 - APPENDIX INTRODUCTION Indias devise leap forward? Abstract India has s exitping pointlessly been a unique demesne and this is in particular a business organisation of how its economy has go againsted. Rather than aggressively publiciseing fo r export harvest-time or runing contrasted head investing like master(prenominal)land china and respectable some former(a)s in Asia, Indias unique place, elections and boundaries led it to pullulate the proceeds field instead.Was this an accidental using or a pur bankruptful push by the political science? If purposeful in nature, what drove the Indian g everyplacenment to render much(prenominal) an approach? In fact, what be the sepa postulate drivers (or should be the key drivers) on a big-economic direct that determine a countrys developing path? In our constitution, we would like to explore three atomic figure 18as specific in ally The Indian organization and its policy making, devoted al-Qaida and institutions and finally Indias political ignorant to see if a conclusion give the axe be make with regards to its economic development.With this macro environment down the stairsstanding(a) in place, we would thusly like to look from a micro-econom ic level and analyze how businesses dissolve watch at bottom the India service labor given this frame act as. The latter question forget be answered while evaluating the rapidly ariseing Indian desi excogitate patience as an example of the introduction future for Indian, which has become very everywhere much(prenominal) about commutationizeing on the taste and p eccentrics of topical anesthetics in terms of invent. Is at that place a way that orthogonal devise firms might be fitted then fence given that the topical anaesthetic companies atomic number 18 so in tuned with the local anaesthetic culture and tastes, non to quotation cheaper?Would at that place be a way to educate the local consumers to adopt a stage set advised mindset as the economy develops and the affluent community extends in surface? Or ordain the culture stay a loyal to a do in India cin one casept for the social classs to come and hence be a waste of time for foreign firms to try and break that mold. With this paper we leave behind try to address these issues to draw a conclusion and recommendation on how best to approach entering this unique and challenging mart. 1. INDIAS UNIQUE ECONOMY AN OVERVIEWIndia, with 1. 189 cardinal lot (July 2011), is the moot hulkyst country underside china. Though nevertheless 30% of the total community is living in cities, the urbanization is winning place at 2. 4% per annum. Only 6% of the population is above 60 years. However, collect to longer life hope at birth of 66. 8 years (2011), this segment is constantly outgrowth. The population below 15 years re of imports comparatively constant beca routine on bonny every Indian woman is giving birth to 2. 6 children only with an infant mortality invest of 5%.It is all-important(a) to mention that the do working population age 15 to 59 pull up stakes increase dramatically in the near five years from 720 to 800 million, seeking jobs and enlarging the econom y. The establishment activity is spending 3. 1% of gross interior(prenominal) harvest-tide on education in cab art to increase literacy rate (only 61% of Indians above the age of 15 can read and write) in ordinance to prep be a young custody to enter the labour securities attention Data ground on CIA fact halt 2011. India and China were the bigheartedgest economies until about 200 years a gone(p) because they had the biggest populations and size was a dominant factor in economic output.Once the industrial regeneration commenced in England in 1800s, followed by the information revolution in the tardily twentieth-century, mere size mattered less. First the Europeans, and then the Americans leveraged technology to increase gross domestic carrefour in absolute terms and on a per capita basis. Now, India and China are developing fast, and are moving up in the world in GDP terms. In 2010, Indias GDP in purchase para was $3. 92 trillion and listed as fourth-largest econo my in the world subsequently the US, China and Japan. . FACETS OF THE INDIAN ECONOMY 2. 1India in the extend decade It is fire to none that while services this instant tell on up to a heavy(p)er extent than 50% of the GDP of India, it wasnt that long ago that India was in addition embarking on the conventional path towards an advance economy d wholeness the typical culture to manufacturing street. After all, Japan, then Taiwan and South Korea, and now China lead in demonstrated that manufacturing can accelerate development because its output can be exported to rich countries.However, in Indias case, while export and business rules were relatively lax at the time, the domestic trade was one where in that location were extensive protectionism laws in place, so much so it became known as a license raj. At that point in time, India had that gained independence and anxious(predicate) to boost export way out while til now protecting local industries and expertise. Th e reality was however, that this strategy was a failure and led to a much lentoer maturement rate than its neighbour leading it soon to a brink of bankruptcy in 1991, despite the Green revolution and enormous crop of its agricultural segment.Looking back however, this phase might deport actually saved India and probably served as the platform where Indias true fruit began. The Prime Minister then Narashimha Rao and Finance Minister Mammohan Singh, with gratifying money from the IMF and conditions of the loan, engineered sweeping economic reforms doneout India which included maltreat to train the license raj that it had became. In tandem with this, tariffs were reduced along with inte symmetry rates. umpteen common monopolies were withal removed, markets were breaking up and automatic approvals for foreign investment were granted into legion(predicate) areas (but non all).The ends from these reforms aim been impactful. As mentioned in the ahead section, India is n ow the 4th largest economy by purchasing tycoon analogy and has been experiencing an average GDP harvest-feast rate of 8. 5% since 2005, making it reciprocal ohm only to China in terms of growing economies. Additionally, despite the globular economic slow low-spirited, for FY11, India is soundless expected to achieve at least 7. 5% growth for its GDP. This is partially overdue to the fact that its domestic consumption is exceedingly knock-down(prenominal) and this boosters to insulate it from external shocks.Looking a bit adpressed at the GDP split, one would find that services now make up the bulk of it, accounting for 56% of the GDP while the industrial and agricultural empyreans represent 29% and 15% respectively as of 2010, a sharp turnaround for India when compared to the 1970s where agriculture used to be the illumi democracy star of growth, contributing close to 42% of the general GDP. In addition, the section from the patience sector only increased from 21% t o 29% during the last 40 years, which is very unimpressive when compared to the services sector. blood cast human beingbank With the assorted reforms excessively comes increased foreign investment into the country. This has amounted to nearly 178 cardinal USD amid 2000 and 2010, a massive jump from 1991 where it was only aver age USD $200 million per year beforehand in FDIs. Among about of Indias key investors include Mauritius, Singapore and the States which rank 1st, 2nd and 3rd respectively, with interests in such investment patently gaining ground given Indias hearty potential and prospects of eminent profitability.As discussed above, the strong domestic consumption has led to a lot of oversea investment into the country and the government has been doing its share to promote such FDIs, by the continued removal of investment caps across all the industries. There still remain an unfinished agenda of permitting vaster FDI in politically nice areas such as insurance a nd retailing, though at least for retailing, roughly steps gather in recently been taken to open this market.A recondite dive into where this foreign investment is going overly reveals, not surprisingly, that a substantial amount or about 23% of total FDI salutaryice goes into the services sector, followed then by the IT and telecommunication segments. 2. 2Infrastructure An important element to take note of is that Indias economic growth stands on a infirm foundation as mellowed slipway, bridges and line of descentports are not up to external standards. Average whet on highways is only 20 miles per hour due to road congestions and slackly its roads are of poor quality.Economic losings final resulting from such poor infrastructure are estimated to be $6 billion per year gibe to the Federal Planning Commission. In India, highways or expressways conciliate only about 67,000 km and while this makes up only 2% of all roads, they carry 40% of the road traffic The government has been onerous to re crystallise this by move up a multiple defend issue Highway Development Project (NHDP) with its signature project aureate Quadrilateral.The goal of this project is to connect the to the highest degree populous cities of Chennai, Bangalore, Pune and Mumbai. This has been partly completed in 2011 cutting the travel time on the 1335km route from Chennai to Mumbai from 90 hours to 48 hours (a hearty 47% reduction). However, multiple check posts and unstable squads remain a source of corruption, not to mention traffic obstruction on highways and toll stations. Various entry restrictions into cities overly slow down the conveyancing of goods.Since cargo traffic is estimated to grow by 15 18% annually, the Indian government is spending $78. 5 billion over the next five years and is additionally trying to guide foreign direct investments for road development projects, granting 100% income measure exemption for a finis of 10 years to hush-hush investo rs. It is also disappointing that Indias abundant railroad nedeucerk of more than than(prenominal) than than 60,000 km is not as effectively used for goods transportation as compared to China. bingle reason is a different standard of broad gauge (80%) and narrow auge (20%). The government has thankfully acknowledge this and is now investing $5 billion into building dedicated weight corridors in the Western and easterlyern routes (Delhi Mumbai and Delhi Kolkata). More significantly, India has overt the freight transportation sector to competition erasing CONCORs previous monopoly of container movement by rail. pedigree beingnessbank database Power is another issue as many cities and economic zones jump from unstable power supply along with shortages of fresh water.India is generating 122 Gigawatts of power from coal-fired plants (57%), hydro power (25%), gas (10%), nuclear power plants (3%) and 5% from re youngable sources (wind, solar). There is a silver lining her e though. While generation, transmission and distribution is in the hands of public sector companies or state electricity boards, the hidden sector companies and inter discipline players are increasingly investing in Indias naught sector (for example Tata Power has a capacity of 2,203 MW, China Light Power provides 655 MW).Unfortunately, despite these investments, thither is still a large exact / supply gap of 7 to 12% according to Indian investment commission. It is also precisely because of its weak infrastructure that just about foreign companies choose other countries in South East Asia, for example Thailand or Vietnam to set-up manufacturing sites. 2. 3Bureaucracy and Corruption Despite Indias best efforts to remove its licence raj stigma, there still exists a fair amount of bureaucracy.The Indian Times summed it up aptly with an member it ran on 3rd June 2009, titled Indias smother bureaucracy worst in Asia A survey by the Hong-Kong based Political and Economic Risk Co nsultancy (PERC) compared 12 Asian nations towards business friendliness.. Source World brink Doing seam Publication In the abovementioned article, 1,274 expatriates working in the 12 leading Asian nations found Singapore, Hong-Kong and Thailand to be the most competent countries followed by South Korea, Japan, Malaysia, Taiwan, Vietnam, China, Philippines and Indonesia.India came in last with its bureaucracy described as suffocating and interaction with civil servants perceived as a slow and painful process. This is a serious issue not just for its reputation to the outside world, but also domestically. According to World Bank figures, India ranks among the worlds worst countries at encouraging entrepreneurs. India is split up-conscious a lowly 166th out of 183 countries in terms of ease of starting a business and second last with regards to enforcing contracts. In addition to bureaucracy, India also suffers from an alarmingly high level of corruption.The 2011 Li-Na report rev eals the following Other organizations like Transparency world(prenominal) ranked India 73 out of the 102 countries in its Corruption Perception Index (2008) and the World Economic Forum positions India 44th amongst 49 countries surveyed. Over the past two decades since the end of the license raj in the 1990s, the Indian economy has gradually opened up along with the governments relaxation on its pissedly controlled policies. On the contrary, corruption in turn has become standard in most business processes.One would find the formal route of setting up a business extremely difficult in India and it is only through bribery that mingled processes can move or speed up. 2. 4Import Tariffs Despite steadily opening up its economy, India has however maintained high import tariffs, specially when compared with other countries. Before the 1990s, average tariffs exceeded 200% and decimal restrictions on imports were extensive. Post 1990, India has been taking steps to cautiously reform t ariffs and concentrate on only on goods and services of highest necessity.This has resulted in Indias trade to GDP ratio increasing from 15% to 35% between 1990 and 2005 according to World Bank. Non-agricultural tariffs invite fallen below 15% and quantitative restrictions on imports have been eliminated. However, that does not mean India is a completely free market as the government has maintained a degree of economic protectionism. For instance, agricultural tariffs remain between 30-40% and anti-dumping measures have been used to protect trade.There have also been numerous requests by the US to the Indian Ministry of Commerce to reduce tariffs on industrial goods, especially in key segments like commercial air lines. On the other hand, India has recently been pushing for a more tumefy-favored inter matter trade regime, especially in services where it is strongest in. So India mustiness find some way to reconcile the 2 issues here. 2. 5Engineering skills In 2008 approximatel y 350. 000 students graduated from college holding an engineering degree, 23,000 with a Masters degree in engineering and only 1,000 students were awarded with a PhD degree.These figures were estimates by Rangan Banerjee and Vinayak Purushottam Muley, some(prenominal) employed by the IIT in Bombay. The number of engineering graduates has been growing significantly over the last years and is now larger than in America. However quantity does not mean quality. According to a survey of local companies, only 4% of Indians engineers are immediately fit to work for software strategy firms and only 18% are employable in the IT sector (McKinseys survey of international firms 25% of graduates pass IT application-specific fatalitys).Hiring companies bring to put a lot of emphasis on training on the job in order to bring Indian engineers up to mark. 2. 6Entrepreneurship Author Raghav Bahl argues in his playscript Super Power? that the Indian entrepreneurship trumps the Chinese due to mo re cloistered ownership, intense competition and high merchandiseivity in India. In his throw he describes an interview with George Soros in December 2006, asking him about Indias competitive advantage over China. Entrepreneurship was the answer.According to Soros, India had already brought up companies with frontmost reputation (Tata, Infosys) which is something China lacks. According to the author entrepreneurship is embedded in Indian genes and he points to the communication industriousness which was liberalized approximately 15 years ago. Since then the number of TV channels and saucyspapers have exploded and the telecom industry has now 500 million customers and is adding 15 million per month under extreme competitive conditions. The tough competitive environment fills for high productivity.Since the private sector in India is footed on common law, entrepreneurs can act in a legal thus predictable framework without fearing expropriation. The result is that Indians priva te sector is booming and is only set about hindrances of the states bureaucracy and poor infrastructure. China, with its massive population, does have its fair share of entrepreneurs of chassis, but the business environment in China is even more challenging as compared to India. In China, the state and the numerous state-owned enterprises with their easy credit access, are the biggest enemies to the private sector.According to Marshall Meyer (Wharton Business School) the government will always remain in control of the 100 largest firms in China. The tight control limits competition and the drive towards higher productivity. 2. 7Trade imbalance and inflation Trade imbalance has always been a sore point for India where it has always suffered a trade deficit. Part of this can be explained by the effectuality of the domestic market and hence the reliance of the GDP growth on it. This trade deficit has however increased significantly over the years and soon stands at some USD $16 bil lion as of August 2011. unneurotic with this, annual Inflation has also increased significantly and is currently standing at close to 10% in 2011, way above the generally acceptable levels of 6%. This rise in inflation is despite the India rudimentary banks efforts to contain this through multiple interest rate hikes. However, Indias inflation is caused more by structural factors in the economy, including some discussed above like poor infrastructure, lack of skilled workers and low productivity in agriculture which will require study policy reforms to tackle, sort of than simply increasing interest rate.All these factors combined can pose a significant challenge for India moving forward. Inflation does not just affect the equal of goods for the domestic market and hence affordability. It also affects the strength of the Rupee, Indias national currency. The strength of the rupee has been steadily decreasing over the years compared against the dollar and this in the long term w ould affect Indias competitiveness. Granted, India is still very much a consumption led market.When compared with many Asian acclivitous economies, this advantage has narrowed down over the years, especially given the fact that India now imports close two thirds of its oil requirements from afield markets. Additionally, while the overseas debt has gone up to $306 billion at the end of March 2011 from $221 billion at the end of March 2008, the cushion of foreign exchange reserves was stable and decreased slightly to $305 billion from $310 billion over the akin period, which is a worrying reduce.The main reason wherefore internal public debt has increased in India during in the last decades was the requirement of funds to finance various developmental programmes as twain tax and non-tax taxs were totally inadequate to finance the government expenditure. The external public debt in India Increased significantly during 1961-2004 as it was utilized to make import payments and so lve balance of payment problems. The tremendous rise in total public debt in India during 1991-2004 provides an alarming signal to Indian economy. 2. 8Indian Political scene Indias political scene has always been an interesting one.It is the worlds largest state where literally everyone has a voice and this has on more than one occasion, resulted in slow and costly decision making. While there is a central government in place comprising of the standard hierarchy of politicians and parliament, the states themselves also have their own legislative environment, which differ greatly from one another due to the significant autonomy that they continue to enjoy. In terms of political parties, there are 2 main coalitions The Indian National Congress (current public opinion party) and the Bharatiya Janata Party (BJP).As such, it is unfortunate to note that while Indian National Congress has a majority in the current ruling government and even control some state assemblies, it has failed si nce to implement any significant reform programs. This is in part due to the complex nature of the Indian political scene, but more important than that is the amount of time and energy spent to manage some(prenominal) high profile corruption cases, the most significant of which (as discussed above) was for the 2010 Commonwealth games and the auctioning of the 2G wireless spectrum.As such, while India has built up a profile of being a hot bed for FDI, this evaporable political scene has also detracted some countries like the UAE from investing as comfortably. 2. 9People As a last part of Indias growth story, we also thought it be interesting to explore if the lives have improved over the years as sanitary. After all, a key part of growth is to ensure the peoples standard of living goes up. There are bright spots of course. Gross income per capita has experienced astonishing growth, r individuallying USD $,219 in 2010, up from close to USD $400 back in 2000, in line with the growt h of India to some extent.This represents almost 14% growth on average over the last 10 years. However, such massive growth is not without its problems. The middle class has exploded deep down India, reaching 32% of the overall population in 2010, and while the service segment has boomed, it only accounts for 20% of total employment in India. Majority of the people are still farmers by trade, working within the agriculture segment that is protected within India but now only accounts for 15% of its overall GDP.In addition, according to the registrar of India, the number of young adults aged between 15 and 50 years will reach 800 million by 2016. This means that the number of people entering the workforce will shoot up dramatically over the next few years. The question then is where are the parvenu jobs going to come from? It is not a realistic expectation for the service segment to dramatically increase employment by another 20 points and the manufacturing segment isnt growing fast enough to contain this population, which in China has taken on the main bulk of the employment. . THE PATH frontwards As per the introduction, this paper will attempt to argue that India should look to develop another industry the Design industry. Why such a specialise segment? What is critical for both India and its MNCs is the ability to build a world-wide brand. There are 2 typical routes taken by companies to cause themselves are as shown below Route A is the more fusty approach where a political party looks to develop a consistent revenue stream before embarking on its own brand.Route B, while more risky, brings much windy rewards should one be successful as seen from the likes of HTC and Giordano. The lolly reaped however are quite significantly different. Just simply adequate an ODM, yields a 6% increase in terms of margin when compared to just being a simple OEM, primarily because of the additional value one can bring. Requires market and technology competencies Be coming a instauration hub would also enable India to grow its manufacturing segment at a much hot mistreat.India has the potential to become a complete solution provider it is already strong in consultancy and services not to mention a big pool of engineers and scientists, and it has a lot of land available to set up manufacturing plants. Plus it has a large and still relatively low cost labour market. Hence, domestic players who are strong in the services piece can build up its manufacturing capabilities quite easily to up the ante. International firms who already have plants in India, can tap onto the big brain pool and potentially bring lots more R&D investment into India.So in terms of help India grow both from a brand and FDI perspective, we felt that becoming a approach pattern hub is key. Additionally, end is really the driver of profits as it is the key differentiator for a lot of products, which in turn lead to higher price points and consumer willingness to pay. orc hard apple tree and its iPhone is the perfect example of this. The great part about all this is that construct innovation can cross all industries from automotive to design to FMCGs etc, which also means it is not a niche segment that will poop out out after a period of time.The question is what should India do to develop this segment quickly and effectively, and the rest of the paper will be addicted to that using agency as a case for analysis. 4. INDIAS FASHION INDUSTRY TRULY GLOBALISED? 4. 1The Fashion Industry The worlds thrill industry was born together with modernisation, even though style has been in existence for more than five thousand years. And with industrialisation, continuous technological advancements and global capitalisation from the 20th century onwards, the port industry has contributed to a significant share of the worlds output.A study on emerging port markets showed that India, amongst countries like South Africa, the UAE, Singapore, Russia and Brazil had emerged as a new and unique player in this global industry since year 2000. In many of these countries, one of the key growth drivers identified was actually government deport. Others mentioned are factors such increased sentiency of international brands and higher demand for agency as countries globalised (Grial Research Sep 2009).For India, the government had not vie any key role in its emergence in the shape industry. We would want to explore what the key drivers are, and how they can be used to spot Indian fashion on the global success map. In Asia, China is the biggest wearing apparel and fashion market with domestic clothing sales value US$33. 1 billion in year 2008 (Price Waterhouse Coopers report). As the Chinese are relatively more brand conscious than most Asians, the high-end fashion market is actually dominated by key brand label of US, Europe, Japan and Korea in China.As for India, it is the third largest in apparel market after China and Japan ($31. 8 bil lion Willy Barker. com) with US$5. 8 billion (PWC report). Refer to Chart A. With experts looking to the fashion industry in Asia for good growth potential, China and India are expected to have double-digit growth in sales in the next two years. 4. 2The Indian Fashion Industry In a McKinsey report on Indias invasive apparel market, Indias apparel sales was expected to reach an estimated US$25 billion by end of year 2010 (McKinsey Jun 2010).In fact, apparel is the second largest retail category (behind food and groceries), and this growth of double digits showed that the great potential of this industry will continue to see strong and dictatorial expansionistic opportunities. With that we do expect to see faster growth in the Indian fashion industry. How true is that? In order to know whether it can be true, we will need to go through the underlying factors, key drivers and perhaps the ways of overcoming constraints of this industry.In addition, it is important to look from insid e out as well as outside in and explore whether Indian fashion can be truly globalised and whether foreign industry players stand a scene in penetrating the Indian market. All in all, with potential growth in Indian fashion design, it will push its manufacturing requirements, and truly globalise Indian fashion as well as setting pace and example in an important industry for India to carry through from design innovation throughout all industries, just like fashion design is trying to do. . 2. 1Factors driving growth Indeed there are some(prenominal) key drivers which drove, and most of these will probably continue to drive the local domestic fashion industry to greater heights. These can be sorted into 3 key areas mainly the increasing disposable income of Indians with economic growth driving GDP per capita from US$329 in 1991 (Wiki) to an expected US$2,110 by year 2016 (refer to Chart B) 1991 2016 2010 Indian youths behaviours and expectations of fashion as well as Indian-Western concretion and influence.These are definitely inter cerebrate and create a powerful driving force which will continue to compel the Indian fashion industry, as well as how Indian fashion can be truly globalized. Figure A on the main growth drivers for Indian fashion industry Real average mansion disposable income in India has more than doubled since 20 years ago by about US$2,000 per household (Earthpulse). In addition, the middle class portion is expected to continue a significant growth rate and this will create a robust consumer market internally in India.With stronger purchasing power, fashion products will definitely see faster growth as such goods have been proven to be demanded as people become richer. Latest figures (refer to Chart C) show that comparing year 2007 through to year 2010, Indias gross and disposable income has grown by almost 50%, and with this comes prospering urban consumer lifestyle which push for stronger demand for fashion, given more social opportuni ties as Indians evolved to have richer tastes and improved social and work lives.At 29% of population residing in cities, India has one of the lowest urbanisation rates in the world (McKinsey report), and this shows the potential upward growth as Indians continue to stream into the urbanised cities to work and live, and with that will continue to demand strongly for new styles and fashions in order to stay relevant to the rest of the more developed societies, which is part and parcel of urbanization and changing cultures in growing ad developing countries.Also, with higher disposable income, it pushes more businesses, both foreign and local enterprises to expand in hope of being commencement ceremony movers in many areas and aspects of fashion such that they will be the like brands or choices as Indians grow richer by the day. As such, larger shop malls are opening and many are focal pointsing on apparels and other fashionable items. In addition, with the increase in the usage of credit separate with more Indians holding jobs in bigger companies, there is no motion that this factor will continue to drive consumer demand, and definitely the fashion industry growth.The second driver is really the change in the demographics of the Indian population. With bump education, younger age classifys, more scene to foreign ideas and stuff through growing internet users and all, the youthful Indian population (in comparison with aging societies of Japan and China) have refreshed the fashion and apparels market with fresh and new ideas, and as a result, even traditional costumes such as saris are modernised and being worn differently, and India has also seen many renowned designers on the international scene.Coupled with things like the launch of new programs and courses in various Indian schools, such as Indian School of Business launched Business of Fashion Strategic Brand Management, there is much greater promotion of fashion and push of local designers and the i ndustry to an international level. emerging affluence of the younger generation has also increased the brand awareness of Indian consumers, thus helping India moving closer to the Chinese standards of brand consciousness, giving rise to the vibrancy of the fashion industry.Hence, as Indias economy continues to grow stronger, and with the help of a sustainable youthful population, the Indian fashion industry can be boosted with much more international exposure and clientele, thus truly globalizing this industry to attract and promote Indian fashion products and output internationally to a greater level of competitiveness. Another important driver is really the fusion of Indian and Western tastes and perhaps some parts of culture, which has gradually influence the lives and lifestyles of Indian nationals.This can be attributed to some(prenominal) reasons such as the ever growing number of foreign international companies setting up branches and even regional headquarters in India th e flood of foreign television programs, all thanks to cable TV, as well as movies and the Internet which play a big role in educating and updating Indians of the latest global fashions and trends many more Indians receiving education overseas as compared to previous 20 years. As a result, this mixing of the East and West has also provided a unique Indian fashion line and trend which has given foreign fashion lines a run for their money.Also, Indians themselves for opting for more Western, especially American and European styles of fashion as compared to traditional clothing, although it will still take many decades and generations to dilute the traditional Indian clothing. This fusion is essential for Indians to embrace the fast pace changes that we are seeing in the fashion industry globally, and enable them to quickly adapt and even be able to set trends for the future. 4. 2. 2Local and foreign players Being one of the oldest civilisations in the world, Indian fashion has combine d tradition, culture and modernisation to become an emerging market since year 2000.Fusions of Indian and Western styles have dominated the catwalks of Indias various fashion weeks, which have become popular and saw strong demands topically and overseas. Since year 2000, India has organised an increasing number of fashion weeks, such as Delhi fashion week and Lakme India Fashion Week, which are annual events showcasing the works of the nations best fashion designers. This has attracted local and foreign purchasers, facilitating business opportunities as well as giving local talents the platform to globalise their designs.Lakme thirteenth India Fashion week which attracted many buyers both locally and abroad With experience and the foresight of continuous strong growth, in year 2008, a group of lay outed Indian designers founded the Fashion Foundation of India (FFI) and it aims to help all local designers and the fashion industry grow internationally. At a particular Delhis fashion week, about 70 out of 150 buyers came from abroad, and this numbers continues to grow as more overseas buyers recognized the popularity of Indian fashion.With the local scene doing well with their local product designs, given that more and more Indian grown companies are also moving into the fashion and apparels markets, such as ITC (Imperial Tobacco Company of India Ltd) creating Wills Lifestyle with 61 stores in 34 states, Trent, belief Retail, Indiabulls, etc. , the fashion and apparel sector are bound to see double digit growth for the next 5 to 10 years, and this is a boom for the apparel manufacturing industry indeed. In addition, India is attracting foreign investment in fashion as well.We see the country being a focus for Inditex, the Spanish clothing retailer which opened 25 Zara shops in year 2010 in partnership with the Tata group. Another international renowned fashion company who had made their debut in India since a few years ago opened its third store in Mumbai sell ing international as well as local designs which includes exclusive sari designs which sold for between USD $6,000 to $8,000 each piece, targeting at the expanding luxury market in India.Although Hermes (French) did not violate whether their sari designers are locals, but from the design, it appeared obvious that Indian designers would definitely had played a key role. Hermes is definitely not the only company that had launched Indian collections. Other luxury brands like Tods (Italian) and Prada have gone into the market with the Indian touch of silk satin clutches, woven sandals and embroidered cotton dresses which are typically made in IndiaFrom the above, we can see that there is very strong foreign interest in Indian design and thereafter manufacturing in fashion products locally as most foreign players see the great potential of Indian consumer market given its strong growth in GDP per capita and other factors as already discussed earlier. The challenge for these global brand s will be how they can translate the interest and investments into successes. One area is of course trade barriers which should see changes if the Indian government wish to liberalize this sector unless. 4. 2. Fashion design industry an example of Indias design future Confidence is for sure to be going the positive way as even the worlds leading fashion and style consultancy firm, WGSN, had set foot in India with the intention to partner with the Indian fashion industry to identify the opportunities and the process to become a global player. WGSN had planned to focus on the whole fleet which included fashion designers, manufacturers and retailers by helping them move up the value mountain range to tap on more and bigger opportunities both in the local scene as well as in the global fashion design industry.As quoted in an Economist article on Indian fashion design future, it tell that It is Indias potential as a source of future design stars that attracts the foreigners. umpteen foreign players are really looking for that polished diamond, i. e. designs or designers, which are able to combine Western cuts with Indias talent for fancywork and its famously fine textiles. However, many Indian designers also lack the organisational skills and infrastructure needed to handle large orders. But as Indian designers attract investors, their business skills will no doubt improve.And as discussed in the macro analysis earlier, there are many constraints atypical in obstructive exponential growth which basically applies in impending the faster growth in the Indian fashion industry as well. These are constraints such as poor infrastructure, inflexible labour laws, even the difficulty of growing from small to big because of conservative banking systems, etc. We can see that more has to be done for the fashion design industry, which will be further elaborated in the next section of this paper.Depending on current fashion institutes, and push from Indian domestic design ers such as Rina Dhaka, Anamika Khanna and Manish Arora who have gained some success in the international scene and are trying to push more for this industry through creation of associations like FFI (Fashion Foundation of India), this will still not be sufficient in growing faster unless the government re-look at their own strategies and is able to see the importance of the fashion design industry in driving both the fashion industrial and service sectors, as well as to put a propose for India in international fashion arena.With this, we draw parallel to other Indian industries (IT, Healthcare, Higher-end consumables) which too can ride on design to bring about a positive and effective change in the value chain of India, and as such may bring India to the next level in climbing up the ladder of being the worlds main heavy weight in economic power in competition with China. An example which can show how many are envisioning this trend and are trying to ride on the bandwagon to per haps have send-off movers advantage is the fact that IDEO, the worlds top design and innovation consultancy firm, has landed in India.It is pretty obvious that IDEO has treasure the potential of India and Indians being groomed to put design and innovation in their move to grow the economy exponentially All of IDEOs work is done in conveyation of the capabilities of our clients and the needs of their customers. As we iterate toward a final solution, we assess and reassess our designs. Our goal is to deliver appropriate, actionable, and tangible strategies. The result new, innovative avenues for growth that are grounded in business viability and market desirability. remove IDEOs websiteAnd it is truly what the Indian government can concentrate on, and that is to use design and innovation as key drivers in improving the action of both the local industrial and service sectors, which will in turn improve the Indian economy tremendously and the lives of Indians with more jobs and eco nomic stability, moving from Third World to First World country for all Indian humanity. 5. COMPARISON WITH CHINA The ancient Chinese strategist and philosopher, Sun Tze has once said if you know the enemy and know yourself, you need to fear the result of a hundred battles.This also applied for India in order to look its strategy in developing the design industry. In the previous section, we have done the detailed analysis about Indian economic and the direction for its economic development direction, in this section we will discuss how should India compete in the global market. Firstly of all, we shall identify Indias main contender in the individual industry. For the manufacturing industry, base on the market size, Indias main competitors are mainly China, Japan and Korea, which are mainly within the same geographical area.For the service industry, Indias main competitors are mainly USA, China. For the design industry, Indias main competitors are Italy, USA, China. As we can tel l that, in each of the industry, China is the overall main competitor for India. Since China and India both are leaders in the emerging market countries, both are having similar competitive advantages (massive labor resource, cheap but high skill workers, high GDP growth etc), there are more and more competitions between the two. A further analysis shows that China has already made a leap in the development of its design industry.Referring to the Forbes global 2000 companies list, we can tell that there are few Indian companies in the product renovation relevant industry, the majority of the listed Indian companies are in the Banking industry, nerve Manufacturing Industry and Natural resource related Industry however, there are many Chinese companies in the list are famous for their product innovation design, for example, Lenovo Group is the global leader in PC design manufacturing industry, ZTE is famous for its network equipment design innovation and TCL is famous for the elec tronic public convenience innovation and design.In order for India to compete in the manufacturing with the leap of design industry, we think that it is reasonable for India to study how China developed its design industry, and base on the comparison, Indian may take some lesson watch over from China. Chinese government recognizes the importance of design innovation in 1980s. Since then, the government has taking stepping in helping to develop its design industry. Basically, China takes 3 steps to develop its design industry. The first gear step is to establish the education system for the industry.In 1984, China setup the first design course in Hunan University, Since then, there are more any and more students graduated with major in industry design or fashion design. Till now there are nearly 10. 000 students graduated with major in industrial design from 400 colleges every year. This large talent pool provides an deepen support for China to develop its design industry. This is also one of the major factor that many multinational design related companies are setting up its design innovation centralize or RD centre in China. The second step is to establish the design industry network across the country.China has established 34 design associations all over. There are more than 30 design festivals and nearly 50 seminars in China every year, many of these events are sponsored by the Chinese government. The government also elevate and promoting the design innovation by pose country wide awards to motivate designers. For example, since 2005, the government established the honoured activities selecting China outgo Ten Outstanding Young Designers every year. Also, since 2006, the government establish the national industrial design award Red Star annually. The third step is to support the Local companies and projects.The government has made plans to introduce national support to develop the fashion design industry by providing funding for design projects. There are also government policies to encourage design related firms to develop. Overall, China has achieved progressive result in developing its design industry. In 2009, Chinese government produced an advertisement of a international image promoting Made in China brand and aired on CNN Asia. This ad is by choice made to rebuild and strengthen the Made in China reputation. However, it also shows that China has taking he product branding into a national level, the government may be is aiming for promote Design in China in the near future. 6. PATH TO VICTORY? India may take reference in Chinese government leading example in development its design industry. Base on the previous discuss, we think India should recognize the need for the country to development its design industry, at the mean time learn from its competitors and apply the strategies according to its own market needs. Referring to Chinas strategies, there are four recommendations we think Indian may demand The first reco mmendation is that Indian should support the design education.Although there are two global top design schools in India, however, there are not many schools offering design as a specialization. Even within the two top schools, there are reports shows that the facilities for design faculty are very limited and students do not have exposal to the international design industry. We think that Indian should recognize that in order to develop the industry, there must be enough talents available. Indian government may administer the following strategies to support the design education. 1. The government can identify several schools in each state to introduce to design course.The government should consider provide funds for the school to recruits staff either from the industry or from overseas. 2. The government should encourage the internal national design company to open branch office in India. This local operation of the overseas design company will generate the market demand for the de sign talents and attract more youngster to take the design related courses. 3. The government should establish international activities to provide international exposal to Indian schools and the students. The second recommendation is that India should consider establishing its design network across the country.India is also a big country it should also consider establishing the design association in each state. We understand that for India, the local state government may have more resource and authority in local development we recommend the central government to provide the policy to guide the local state government to encourage a close connection between design associations in each state. The third recommendation is that India should consider establishing a regional design centre. In this way, India may take the opportunity to link the work design industry with the design centre and spread to each state across the country.One city India can consider to label as the design centre is Bombay, since Bombay is named as the commercial entertainment capital. The fourth recommendation is that the India government should consider encouraging the local companies to develop its design and innovation strength. The government may provide the funding support for design projects. This will help the Indian companies to development a sustainable model. Price + Value In order for a business to sustain, there are basically four key factors investment, productivity, human development and product quality.The education support in recommendation 1 will help to provide a sufficient high skill work force for the company to develop its design arm. The sign government funding will provide the investment for the company to develop the product design and innovation. The introduction of the new drive force for the product design innovation will contribute to the increased value in the product quality and increase the productivity. The business sustainability will also help to sustain t he design industry to develop. 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