JCB in India (PowerPoint Presentation Sample)

JCB in India Student Name Institution Introduction to JCB ▶J.C Bamford Excavators Limited (JCB) began operation in 1945 after its official establishment. ▶It manufactures equipment for construction, such as backhoes, evacuators, and tractors. ▶It is the third largest manufacturer of construction equipment after Caterpillar and Komatsu (Iyer, 2017). ▶It began operations in India after entering into a joint venture with Escorts to export backhoe loaders. ▶Currently, the corporation is a fully owned subsidiary with five factories in India. JCB Products 6530331428755418582142875909827224751954185822387727 JCB Achievements in India ▶The corporation increased its range of products from one (backhoe loader) in 1979 to more than 45 models of eight different product categories (Thomas, 2011). ▶The company has expanded its operations by setting up five factories: two at Pune, one at New Delhi and two at Jaipur, which has made JCB India the major manufacturing hub for global markets. ▶The company has set up more than 15 training centers in India to teach entrepreneurship and train professional employees ("JCB India – construction equipment, agriculture equipment manufacturer in India”). JCB the Market Leader in India 905255236106 Reasons Why the Indian Market was Favorable for JCB ▶ There was an opportunity for future growth. Many foreign investors had not entered the Indian market in the 1970s which means that there were many opportunities for growth in the market (Raj, 2014). ▶The company wanted to have a competitive advantage over competitors who would come later in the market. ▶The company got an easy entry through establishing a joint venture with Escorts, one of the market leader (Verbeke, 2013). Reasons for Favoring Exports ▶Manufacturing companies serve a large global market, which justifies why they use exports to expand their foothold in different markets. ▶It was a small global player in comparison to Caterpillar and Komatsu, which explains why they choose to use exports to expand quickly (Raj, 2014). Rationale for Using Joint Venture ▶High tariff barriers discouraged direct entry into the Indian market. ▶Government regulations only provided entry through joint ventures. Ways the Joint Venture Benefited JCB ▶The venture resulted in the sale of over 2,000 backhoes in Indian which was equal to 80% of the market. JCB used this breakthrough in the following ways; * JCB was able to gain full equity in the venture over Escorts. * The corporation established new factories in India making it the leading manufacturer of construction equipment in India (Raj, 2014). Risks associated with the Joint Venture Strategy ▶The possibility of technology leakage to Escorts, which they would have used to better their competitive advantage. Thus, JCB was protecting itself which limited its expansion. ▶JCB had limited control in the venture because it owned a small equity of 40% in comparison to that of Escorts of 60%. How JCB dealt with Those Risks ▶First, the corporation bought 20% of Escorts equity to become the leading partner. ▶Later, JCB bought the remaining 40% equity from Escorts which made it the full owner of the venture (Thomas, 2011). ▶Being the full owner, JCB increased its market...