Objective: The objective of this thesis is to investigate how Scania has attained success to establish on the Indian market and to inquire into the establishment process of Scania and their entrance in the Indian market. The thesis describes different factors such as the product, mode of entry, time of entry and choice of market that play a role when a company establishes and invest in a foreign market. Method: This thesis is limited to the process of establishing Scania on the Indian truck market. A qualitative approach has being utilized in this study, consisting of interviews with Staffan Sjöström, development manager at the R&D department, Koen Knoops, vice president at Financial Services and Henrik Fagrenius, former managing director for Scania in India. Data collection from various journals and articles have been conducted for the presentation of the number of sold newly registered trucks in comparison to the number of sold newly registered trucks in India by Volvo, Tata Motors and Ashok Leyland during 2010, 2011, 2012 and the first three quarters of 2013. Theory: With a starting-point in empirism, we have used a theoretical frame of reference to describe Scania´s establishment process. Scania makes use of an internationalization strategy, namely Market Selection, Time of Entry and Entry mode and the network model, which describes the process of establishing on a foreign market as a business association with various players on the market. Scania has made the choice to establish on the Indian growth market, which is still economically unexploited in many aspects since it is a young and growing market and has positive opportunities for profitability. Conclusions: The concept that Scania follows as it establishes on a growth market, be it an industrialized country or a newly industrialized country, is that supreme quality always should be the primary choice. Customers are interested in lower overall costs and not in low prices. Scania believes that entrepreneurs worldwide have the same need for high quality and that psychological distance, meaning cultural differences should not be an obstacle on the path of establishment. A cheap work force, improving infrastructure and political reforms have carved the path for Scania’s establishment on the Indian growth market. According to Fagrenius Scania has wasted no time on excessive observation although they have taken precautions in forming partnerships and creating a broad network before entering the Indian market.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:sh-25553 |
| Date | January 2013 |
| Creators | Kanwal, Bushra, Flores Frias, Sandino |
| Publisher | Södertörns högskola, Institutionen för samhällsvetenskaper, Södertörns högskola, Institutionen för samhällsvetenskaper |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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