The country of India doesn’t look like the new frontier in the high tech revolution but in the ancient rural villages of southern India, amidst the chaos of crowded streets, is a bold new world. India has turned into a technology mecca by being able to draw big name international companies and by creating a few of their own. Mohandas Pai, CEO of InfoSys, provides a tour of its facilities and explains the company’s extraordinary growth by growing from 500 to 50,000 employees in 12 years. He says it’s time to go East young man. InfoSys believes the key to luring foreign investors and workers is to create companies on par with any in the West. Pai showcases the InfoSys conference room which is noted as similar to the United Nations. With over 40 office buildings, 2 gyms, basketball courts, a supermarket, a golf course, and its own bank, InfoSys looks more like a resort spa than a company headquarters.

 Along with Indians who have traded jobs overseas to come home, increasing numbers of young Americans from elite U.S. colleges are coming to work for companies like InfoSys in India which has the second largest software industry. Many feel they can get more experience and opportunities they could not get in the U.S. Graduates of U.S. colleges are interviewed for their perspectives on the opportunities to contribute to organizations and the lures that are available in India. Americans are working hard and living well with lower salaries and lower cost of living with minimum standards of 3 meals a day for a $1. Mohandas Pai says that young Americans should come to India for the future is here.

 

1. What international strategy incentives does India offer to a foreign investor? What limitations exist in India for companies desiring international expansion? Explain.
2. What benefits does InfoSys receive from its international strategy? Explain.
3. How does India’s national advantage(s) influence its business-level strategy? Explain.
4. What corporate-level strategy is used by InfoSys and why? Explain.

Yahoo!/Microsoft

The Yahoo/Microsoft partnership, while the Silicon Valley talk, has employees concerned at Yahoo about more layoffs in the Yahoo search department. The deal teams of two of the biggest technology companies against Google for the lucrative control of the internet search market. Analyst believe that, in the short term, Google would has little to worry about but in the long term they may depending on how advertisers respond to the idea of a larger #2 in the search advertising market.

Google, currently, has 65% of the market while Yahoo has almost 20% and Microsoft at a distant third with less than 10%. The managing editor for CRN Magazine considers this absolute steal for Microsoft in that Yahoo wins the ability to stay an independent company with a huge new friend. Reporters say consumers won’t notice changes right away but the partnership will benefit consumers over the long run because it doesn’t hurt to have a very strong #2 in search. With consumers receptive to the move, analysts believe that it will boost Bing’s exposure to Yahoo’s audience giving Microsoft its desire for a greater share of Internet advertising. Yahoo is reserving the right to retain control of the user interface which will control the look and feel of how the search results will be presented but the technology is all done by Microsoft. Analysts predict a tie-in to remind people that Bing is what’s providing the results which is key to branding for Microsoft.

 

1. What kind of competitive advantage is created through the Microsoft/Yahoo cooperative strategy? Explain.
   • What kind of strategic alliance has occurred with Microsoft and Yahoo? Explain your answer. For what reasons do you think they developed such an alliance?
2. Now that Microsoft and Yahoo have partnered, what business-level cooperative strategies do you think we can expect from them? Why? Explain.
3. What corporate-level cooperative strategies do you think we can expect? Why? Explain.

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Also check out: (Indian Economic Growth) under the link: http://www.indianeconomics.org/ and INFOSYS: https://www.youtube.com/user/Infosys Also check out: (Indian Economic Growth) under the link: http://www.indianeconomics.org/ and INFOSYS: https://www.youtube.com/user/Infosys

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Regarding India and InfoSys What international strategy incentives does India offer to a foreign investor What limitations exist in India for companies desiring international expansion Explain India o... View the full answer