Euroflex Transmissions (India) Pvt. Ltd.: International Marketing Strategy

Rajendra Nargundkar

Abstract


Small companies from emerging markets rarely make successful forays into advanced country markets with hightech products. This case study examines one such company and its transnational entry strategy. Its teaching note(available from the author) describes the directions actually taken by the company after the end of this case, andthe current status of its international marketing forays. The company is now fairly successful abroad, but this case(for pedagogical reasons) deals with the initial internationalization dilemma facing the company.    Euroflex  is  a  small  Indian  company  in  a  joint  venture  with  Euroflex  Transmissions  of  UK-based  out  of Hyderabad, and supplies flexible couplings, used to connect two machines rotating at high speeds. This is a critical component, as its failure can cause huge losses to the customer. This case looks at how the company started,obtained technology in the early years of India’s liberalization, started with the domestic market, and its decisionto tap into international markets. The learning and discussion points include initial funding in an era before angelinvesting,  product  choice,  technology  sourcing,  product-market  segmentation,  choice  of  international  markets for entry, and emerging country disadvantages during the process of selling abroad, particularly for a high-tech product. The influence of an emerging market environment and difficulties arising from that is particularly relevant to many of the issues, as the case begins around 1992, just after India liberalized its economy and opened it to globalinfluence.    This is a field case based on interviews with the directors, and visits to the production factory of the company, based at Hyderabad, India

Keywords


Emerging market, Internationalization strategy, Small and Medium Enterprises (SMEs), Market selection, Support environment

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