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Strategic:
Infrastructure is not a big problem like India so company can handle this
problem. There would be less industrial clusters as European countries are
open to all other European countries.
Socio political:
All European countries have political stability. Cultural barriers could be
problem for the company but they can solve it by hiring local employees.
WHENEntering Eastern Europe is safer now because these countries are less
affected by euro crisis and M&M can get first mover advantage if they select
business like Electric car manufacturing. M&M already has business of
electric car manufacturing based in Bangalore. They can use their
technology and competency to capitalize the operations in Europe.
HOWMode of entry for M&M is bit tricky task as they cant go for JV as there is no
European electric car manufacturer. Therefore, company has to form a
subsidiary through 100% FDI.
Application of above mentioned strategy can be substantiated by using 4 A
strategies for your product development in foreign market.
Adaptability: Their product should be manufactured according to local
demand and conditions.
Electric cars are in demand because of
environmental causes.
Availability:
Availability of product should be high by using different modes of
distribution.
Affordability: