Lincoln Electric should expand to India. The company will be able to exploit the high demand for welding products in India to increase and diversify its revenues. India provides a conducive environment for conduction and growing the company’s business. The country is politically stable and has not had any political crisis in the past decades (Organization For Economic Cooperation And Development.). Besides, the country has eliminated some bureaucracies that existed in the past governments. The country also enjoys economic stability. The Indian economy has had an average annual growth rate of 6% since the fiscal year 1990-91 (Organization For Economic Cooperation And Development.). A growing economy is beneficial to Lincoln Electric as it guarantees the company’s growth. The firm will also benefit from the large population of India. The large population offers a source of qualified manpower. Besides, the large population boosts the demand for finished products and services. This leads to an increase in the derived demand for welding products. Besides, there is less government intervention in the market. The Indian government acts as just a regulator hence firms compete freely in the market although there are still a few barriers. A free economy ensures that Lincoln Electric does not face discriminative policies that give an unfair advantage to Indian manufacturers in the same country.
The Indian market still lags behind countries like China and Japan in technological advancement. The manufacturing industry in India is not as developed as in the US, China, and Japan, among other countries. Therefore, Lincoln will have a competitive advantage over Indian firms in the welding products industry. India is the third largest market for welding products in Asia, and the market is expected to continue growing in the coming years. This will provide Lincoln the opportunities for growth. The company has also successfully implemented the expansion in markets such as Japan and China. Therefore, expansion into India will not be very challenging.
PESTEL Analysis
Works cited
Organization For Economic Cooperation And Development. Economic Outlook For
Southeast Asia, China, And India 2015. [Place of publication not identified]: OECD, 2014. Print.
