I (Meaning and importance of Exports) Unit Structure

 

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90 
Questions 
(a)
Why Ashish Garde had attraction for overseas business? 
(b) 
How should international consultants advise Ashish Garde to 
explore foreign markets? 
 
(C) Case Study 
Hindustan Ayurveda Ltd. is a Nagpur based pharmaceutical 
company which has made its strong presence felf in the domestic 
market with its limited brands of ayurvedic preparations in 
healthcare business. It claims to market its products without any 
side effects which have become its selling point. One of its new 
products is Dio-care which is a combination of fenugreek, cinnamon 
and bittergrud and is found significantly useful to control blood 
sugar in diabetes patients. This brand is considered an important 
innovation in the treatment of diabetes. Its sale has caught up in a 
big way in the domestic market. In the meeting of board of directors 
they toyed with the idea to explore global market far their innovative 
product. The directors felt the company is financially strong, has 
effective marketing department, a well equipped R&D department 
with programme outlook of management and supportive 
government policy, now is the right time to diversify into overseas 
market. The director also expressed their apprehension that export 
market is most unpredictable and uncertain. At the end of the 
deliberation they decided to go ahead and venture into export 
markets.
Questions 
(a) 
Give your opinion about the possibility of success of Dio-
care in overseas markets. 
(b) 
Identity the steps involved to explore export markets for an 
innovative product Dio-care in health care business 
 
(D) Case Study
 
From 2000 to 2005 Toyota, world renowned Japanese car 
sold more in America than in Japan. Toyota performed only 
responsibly well in Europe. Looking into encouraging sales in 
America, Toyota gave serious thought how to continue its more 
than satisfactory performance. If Toyota wanted to increase its 
sales it must change its strategy to 
“Americanization of Toyota” The 
challenge before Toyota management was not to lose sight of what 
made it click initially and that was “a devotion to quality and 
customer satisfaction”. Toyota opened its subsidiaries in US but 
there were regular clash between Japanese bosses and American 
subsidiaries. Mostly disputes related to cultural differences. For 
example Japanese bosses opposed introduction of full size pick up. 

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91 
After screening the parking lots packed with full size pick ups, the 
conflict was solved and Toyota Tundra was born. Toyota faced 
another challenge. The average age of an American driving Toyota 
was 45. In fact, its ad campaigns were directed towards Generation 
and younger market. Now Toyota had to cater to two distinct 
segments of the market one for the middle aged buyers and the 
other for the young crowd. Americans are known to use cars for 
shorter duration. Toyota must decide to follow a product strategy 
where regular innovations take place.