His choice of the partnership arrangement does mesh well with a skimming market entry. Moreover, there are currently many companies in the market, although most are involved with the older candle technology. As India upgrades its electrical delivery, and as more and more good-paying jobs are lured to the nation driving up personal income and the desire -- not to mention need -- for personal convenience in accomplishing the tasks of life, then candle technology is likely to be as popular as the hand-cranked wringer washing machine. In short, setting Blair up to compete with the has-beens in the marketplace seems shortsighted and ultimately doomed. It would depend on getting into and out of the market at exactly the right moment.
On the other hand, buying a company, as noted, would give Blair other product lines in the event that their water purifier market entry did not achieve its goals. In addition, it would also give it both the manufacturing and marketing substance to enter the market in a penetration manner. The largest company in the market is Singer, a company that makes a formidable opponent, especially in terms of its advanced technologies and marketing muscle, not to mention its name. In fact, Singer's strong brand identification is another reason for Blair to purchase a company that already has reasonable brand identification in India.
Chatterjee's decision to revise his original plan to begin with rural areas and then move into the cities was the correct one. It is not only distribution in any LCD that is the problem to outlying districts; those areas also offer bigger promotional and, in cases such as technology, educational challenges than the cities. For that reason alone, beginning with a major rollout in major cities is a better plan. Singer will make a powerful entry into the Indian market; Blair can, if it is clever, ride Singer's coattails into the market. Blair can allow Singer's market...
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