BUSINESS Models

COMM 374 - International Business Strategy

Date: March 4, 2007

To: Silvio Napoli, and Schindler Holding Ltd.

From: Chia–Jung Chang 5549039

Re: Silvio Napoli at Schindler India - Harvard Businees Case

Napoli, an ambitious vice president who is responsible for Schindler’s India division, is confronted with difficulties to implement his business plan. Schindler, a prestigious Swiss company, discovered the huge growth potential of the construction industry in Asia. Accompanied with the fortune of the elevator industry, Schindler decided to enter the Indian market. Earlier market research conducted by Napoli has revealed that a 100% wholly-owned subsidiary is of strategic priority due to the lack of ideal partners and local networks in India.

To resolve the present challenges that Napoli face, there are numerous considerations – elevator market environment, government policies, targeting and positioning, product development, efficiency of logistics and supply chain, Schindler’s strategic approach to international operation, and potential human resource management conflicts.

The upfront questions and impediments that Napoli presently encountered will be analyzed by the issues mentioned above and provided with the pros and cons of feasible alternatives.

Standardization: To penetrate market rapidly and take advantage of economies of scale, Napoli focused on simple and narrow product lines, with no allowances for customization. However, due to their lack of local experience, the standardized products introduced may not be in tandem with customer’s preferences. This misalignment might work to impede sales and promotion. On the contrary, customized products can offer Napoli greater opportunities to deal with a variety of customers, especially for an entirely new brand in a foreign market. But the disadvantage is that even with minor modifications, the complexity of product design and installment expense may increase substantially. These unexpected costs..

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