Although Blaser Swisslube (Blaser)’s market share in the coolant space in the Indian industry is relatively low as compared to other players, India is an important market for the company. With India becoming a global sourcing hub for many auto companies, the auto sector is the prime driver for the metalworking fluids segment. Since starting operations in 2002, the company has, over the years, operated as a sales subsidiary of its parent company located in Switzerland. The parent company strongly believes in innovation and delivering value globally to customers through customized solutions and safe products.
Blaser is facing a challenge in India in convincing industrial customers of the value of its products and solutions and their potential to create financial returns for them. The reason is that most Indian customers are price-conscious. And the price of Blaser’s coolants is higher than the price of its competitors.
It is in the context of this challenge that Punit Gupta, the managing director of the Indian subsidiary, is facing some dilemmas. How should his sales team convince Indian customers to try out Blaser coolants? Who could be the right person to approach in each organization to sell the concept of the coolant as an investment in productivity improvement rather than as a consumable? Where does the ongoing digitalization of Indian manufacturing fit in? What holistic approach can the company take to intensify its growth journey in India?
At the end of the class, students would be able to understand the following:
• Importance of deciding the correct mode of entry into an international market
• Different approaches multinational firms adopt in operating, coordinating, and controlling subsidiaries
• Choices companies make in developing business-level strategies to compete in international markets
• Decisions companies can take to increase the adoption of innovative products and value offerings
• Importance of responsible innovations