Comments on: Leveraging China AND India http://calpolymbatrip.com/2007/china/leveraging-china-and-india/ The MBA Graduate Program at Cal Poly Fri, 18 May 2012 16:44:31 +0000 http://wordpress.org/?v=2.6.3 By: Yuxiang Gao http://calpolymbatrip.com/2007/china/leveraging-china-and-india/#comment-17733 Yuxiang Gao Mon, 08 Mar 2010 18:21:04 +0000 http://calpolymbatrip.com/2007/china/leveraging-china-and-india/#comment-17733 Comparing these two countries, China seems to be favored over India. In addition to a higher cost of doing business in India than China, several other factors are considered. (Heamanth, I am saying that not just because I am Chinese) For many industries, China and India both present some of the highest growth rates in the world and are emerging as mega markets. Take cellphones. The number of users in China exceeds 450 million, and the estimated figure for India is 150 million. In 2002 China spent US $128 billion on power and transport infrastructure compared to US$18 billion for India. Although India has promulgated considerable deregulation, there remain many laws that are a legacy of its socialist past. Labor laws designed to protect workers have the effect of discouraging new employment. China and India present different but complementary strengths that companies can use. China is much stronger than India in mass manufacturing and logistics; in contrast, India is much stronger than China in software and information-technology services. Comparing these two countries, China seems to be favored over India. In addition to a higher cost of doing business in India than China, several other factors are considered. (Heamanth, I am saying that not just because I am Chinese)
For many industries, China and India both present some of the highest growth rates in the world and are emerging as mega markets. Take cellphones. The number of users in China exceeds 450 million, and the estimated figure for India is 150 million.
In 2002 China spent US $128 billion on power and transport infrastructure compared to US$18 billion for India.
Although India has promulgated considerable deregulation, there remain many laws that are a legacy of its socialist past. Labor laws designed to protect workers have the effect of discouraging new employment.
China and India present different but complementary strengths that companies can use. China is much stronger than India in mass manufacturing and logistics; in contrast, India is much stronger than China in software and information-technology services.

]]> By: Michael Mossman http://calpolymbatrip.com/2007/china/leveraging-china-and-india/#comment-9596 Michael Mossman Thu, 05 Mar 2009 20:57:57 +0000 http://calpolymbatrip.com/2007/china/leveraging-china-and-india/#comment-9596 How to Get China and India Right is one of the best articles I have read about doing business in China and India. The article hits on some important and relevant points, even in this global recession. It is hard to tell if China or India will have a bigger economy in twenty or thirty years. The smart companies are focusing on both because either way the combination of both economies will be significant. Another interesting point is that for a foreign company entering China and India they must take a ground up approach with their products. Trying to sell a US product in China will not guarantee success; a new product designed for the Chinese consumer will have a much higher probability of being successful. It is interesting to see how Microsoft has dramatically changed their approach to China. They have realized the importance and value of investing in China and creating significant partnerships with Chinese universities. Microsoft can share information and some products between the US and China, but for the most part it appears they need to design products in China for the Chinese market. All of these points are extremely valuable to any company entering the Chinese and Indian market; they are also important to anyone thinking of starting a company in those markets. How to Get China and India Right is one of the best articles I have read about doing business in China and India. The article hits on some important and relevant points, even in this global recession. It is hard to tell if China or India will have a bigger economy in twenty or thirty years. The smart companies are focusing on both because either way the combination of both economies will be significant. Another interesting point is that for a foreign company entering China and India they must take a ground up approach with their products. Trying to sell a US product in China will not guarantee success; a new product designed for the Chinese consumer will have a much higher probability of being successful.

It is interesting to see how Microsoft has dramatically changed their approach to China. They have realized the importance and value of investing in China and creating significant partnerships with Chinese universities. Microsoft can share information and some products between the US and China, but for the most part it appears they need to design products in China for the Chinese market. All of these points are extremely valuable to any company entering the Chinese and Indian market; they are also important to anyone thinking of starting a company in those markets.

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