Lincoln Electric’s expansion into India is a great example of how supply and demand affects marketing and economics. By understanding the country’s need for quality welding supplies and equipment, Lincoln Electric was able to tap into a new market and provide a product that was in high demand. The company’s ability to quickly adapt to the changing needs of the Indian market has been a key factor in its success in this new market.
Entry into a new market is the primary goal of a business’s entry strategy. Joint venture entry is the need for two firms to collaborate in order for one to enter a distinct market. They get into the same industry and develop comparable products with the intention of sharing risk and profit, according to their contract (Kretzberg, 2007).
Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good or other traded item will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium for price and quantity transacted.
The main reason why companies venture into other countries is to create awareness about their products so as to increase sales volume which directly increases profits. When a company wants to enter into another country’s market, there are several things that they have to put into consideration such as political instability, weather conditions and also legal factors. India has developed over the years politically and economically making it one of the countries that are favorable for Lincoln electric to venture in.
Lincoln electric is an American multinational corporation headquartered in Cleveland, Ohio. The company manufactures welding products, arc welding systems, plasma and oxy-fuel cutting equipment and robotic welding systems. It was founded in 1895 by John C. Lincoln. The company has been doing very well in its operations but wants to expand its market so as to increase profits.
India has a population of over 1 billion people which creates a large market for the company’s products (The World Bank, 2016). The country is politically stable which makes it easier for businesses to operate without fear of government interference. India is also a member of the World Trade Organization which provides a legal framework for trade between member countries (WTO, 2016).
Lincoln electric plans to use a joint venture entry strategy to enter the Indian market. The company will form a partnership with an existing Indian company that is already operating in the welding and cutting industry. This will help Lincoln electric to reduce the risk associated with new market entry and at the same time benefit from the partner’s existing knowledge of the local market. The joint venture will also give Lincoln electric access to the partner’s distribution channels which will help to increase market penetration.
The company plans to use a combination of online and offline marketing strategies to create awareness about its products in the Indian market. Lincoln electric has an existing website which will be used to provide information about the company’s products and services. The website will be optimized for search engines so as to improve visibility in the Indian market.
The company will also use online advertising platforms such as Google AdWords to display ads about its products to users who are searching for relevant keywords. Offline marketing activities will include print and television advertising. Lincoln electric will partner with existing media companies to place ads in magazines and newspapers that are widely read by people in India. The company will also produce television commercials that will be aired on popular television channels in India.
Consequently, Lincoln Electric Company has an opportunity to form a partnership with another company to explore the Indian market. By using the joint venture strategy in the Indian market, Lincoln Electric would be able to appeal to more potential customers in the region. The primary analysis is done through careful research of the current market conditions through different perspectives.
The Supply and demand situation in the market provides an opportunity to expand in the market. The other important factor is marketing mix that the company should consider while expanding in India. The company should also do an extensive research on the target customer base in India.
It is important to have a good understanding of the economic situation of the country before venturing into it. All these factors have been considered by Lincoln Electric Company while planning to expand in India.
The expansion of Lincoln Electric Company into India shows how multinational companies are willing to explore new markets. In this case, the Indian market provides a chance for the company to increase its market share. The company has used different strategies such as joint ventures and supply and demand analysis to come up with a good plan for the expansion. The company should also continue with its good research on the target customers and the economic situation of the country.
Lincoln Company has to consider a wide range of market circumstances in order to succeed in the market expansion, depending on various factors such as political, social, and economic integration. The introduction of the welding business is critical for India’s technological progress.
The basic aim of the company is to explore and exploit all potential market that are available in order to achieve increased sales and profit. There has been a decrease in demand for welding equipment recently which has made it difficult to justify an expansion into this market. However, with the right marketing strategy, Lincoln Electric can successfully enter the Indian market.
Lincoln Electric’s expansion into India is a direct response to the growing demand for welding equipment in this region. The company plans to take advantage of the current market conditions by providing quality products at competitive prices. In order to ensure success, Lincoln Electric must carefully consider the following factors:
– Supply and Demand: It is crucial that Lincoln Electric have a clear understanding of the supply and demand conditions in India. The company must be aware of the current demand for welding equipment as well as the projected future demand. This information will help Lincoln Electric determine the right time to enter the market and the appropriate product mix to offer.
– Marketing: An effective marketing strategy is essential for any company looking to enter a new market. Lincoln Electric must carefully consider how to best reach its potential customers in India. The company should also create a unique selling proposition that will differentiate its products from those of its competitors.
– Economics: It is important to understand the economic conditions in India before expanding into this market. Lincoln Electric must be aware of the country’s GDP, inflation rate, and interest rates. This information will help the company make informed decisions about pricing, investment, and other economic factors.
By carefully considering these factors, Lincoln Electric can successfully expand into the Indian market and achieve increased sales and profits.