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Engineering Essay

2514 words - 11 pages

1. Introduction
India is located in Southern Asia, bordering the Arabian Sea and the Bay of Bengal. It is the
seventh largest country in the world with a population of 1,189,172,906 (CIA, 2011), making
it the second largest populous country with only China having a greater population (Burrows,
2005). India is part of the BRIC countries, meaning that it is seen as a major developing
economy in the world as well as contributing towards 40% of the world’s population in
which the BRIC countries formulate (Rosenberg, 2009) however, although India is seen as
having a major developing economy, it is poverty stricken (CIA, 2011). A survey conducted
by NSSO in 2004/05 concluded that 22.15% of ...view middle of the document...

Burrows (2005) provides information that India has all available natural resources apart from
energy, and this agrees with the CIA (2011) who states that India’s energy resources are
being drained by the extremely high, continuously increasing population. This could have
negative impacts on a new market entrants as energy resources are scarce; however, on the
other hand, labour is widely available with 61% of the population aged 15+ able to read and
write, as well as having a high level of graduates (CIA, 2011). This could provide managers
with an effective/skilled workforce as graduates have a lot of knowledge and know the
theory; however they have not put it into practice and gained sufficient experience which
could be a downfall. There are both skilled and unskilled labourers available and this means
that a new company will have a choice of employees as to which best suits their needs
(Porter, 2004).

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The physical infrastructure to accompany the soft drinks industry is extremely poor due to the
lack of attention and low investment, particularly the power supply infrastructure (Burrows,
2005) which is scarce and unreliable because of rate regulation reducing the incentives to
invest in better plants.
The transportation system in India is extremely large; in 2007 the railway system carried 2
million tonnes of freight per day which is a good way for companies to transport goods to the
vast regions of India. However major improvements are needed as the transportation system
is weak, especially the road network which is 1/3rd under-financed (World Bank, 2011),
conversely it is estimated that by 2015 India will have one of the best transportation systems
in the world. There are 12 major and 187 minor ports and 125 airports with 11 being
international, this is a good way to distribute domestic products and during 2006/07 air cargo
accounted for 1.2 million tonnes (CIA, 2011). The option of different transportation is very
beneficial to companies as it allows them to reach different parts of the country; however the
rail freight transportation costs are higher in India than other countries.
Companies will have good communication to advertise and market their products as 61.338
million residents are internet users and media TV is well established in India (CIA, 2011).
2.2 Related and Supporting Industries
India has a strong supplier network which is extremely large and accessible and the cost of
switching is relatively low (Datamonitor, 2011) which therefore is beneficial for soft drinks
companies as they will not have to pay high prices in order to switch suppliers. At present
supplier power within the country is moderate, with the power of packaging manufacturers
gradually growing due to the high rise demand for more eco-friendly packaging (Bhanu,
2003).

3

On the other hand, soft drink commodities are prone to price fluctuation depending on the
demand and this could be a downfall for emerging...

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