Canadian businesses seek to adapt to India








With the exciting and diverse business opportunities in India now finally more in focus for Canada, the message that Canadian firms need to adapt their approach to the Indian market should be front and centre. However, it is a message that I believe Canadian executives, for the most part, have not fully comprehended nor taken to heart. Their historical focus on the US market hasn’t effectively conditioned them for major adaptation.

Our recent Telfer School of Management’s 6th annual India Forum delved into the important theme of “Adapting Your Business to India”. This year’s  “National Capital India Forum” reflected Telfer’s expanding collaboration with partners and brought together a diverse audience of Canadian and Indian firms, government officials and intermediaries to demonstrate and debate just what this “adaptation” entails.

In many respects, India is now a full-fledged buyer’s market and Canadian firms face diverse, and at times, extremely challenging demands as they attempt to enter the market. Requests for new and modified products, unprecedented low pricing, technology transfer, flexible timelines and local content are challenging all competitors in today’s Indian market. These challenges are exacerbated by cultural nuances that make the business environment difficult to read and navigate.

Our Forum showcased a couple of Canadian firms who have significantly adjusted their business approach to penetrate the market. Samco Machinery of Toronto with a nine year history in dealing in India is a case in point. The firm has effectively adjusted its approach in localizing production to meet the challenging demands and to provide the framework for the Tata Nano, India’s $2,500 car. DataWind, another Canadian firm with a unique offering of the world’s lowest cost computing/internet device ($40 range), focuses on the bottom end of the pyramid in India. The firm effectively exhibits “frugal innovation” as it markets its Aakash tablet computer products.

The product, pricing, operational and other local adaptations which these firms have made in order to penetrate the Indian market are indeed remarkable. The success was achieved through intensive local market cultivation and commitment and a complete reset of their business plans. These firms are admirable beacons of change and role models. Let us hope that Canadian firms, large and small can follow their lead and a change in mindset will spread.

My view is that Canada has never been better placed to realize significant business in India. Yet big questions remain for Canadian companies. Do we want it as much as some of our competitors ? Can Canadian executives reset their approach to succeed in India?

We need to keep these questions on the table. What do you think?

Reference: University of Ottawa


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