Inm Reflective Note

INM Reflective Note

The first learning from the course was the correction of our understanding of globalisation. We used to believe that the world has indeed been flattened by the rapid development in technology, communication and increased international trade. However, we came to realise that the world is far from being flat – that modern human advances are highly skewed in their distribution across the world.

The discussion on trade theories and effects of tariffs and instruments such as export subsidy, import quota, voluntary export restraint etc. brought new learning to us.

The implications of joining the World Trade Organisation and forming trade blocs was a significant learning. We came to know that countries can accord ‘Most Favoured Nation’ status to a country and form trade blocs to facilitate trade and could appreciate the concerns of the British leading to Brexit and the insistence of developed economies that India end agricultural subsidies and MSP to its farmers, and India’s resistance, so as to ensure food security.

The application of Porter’s Diamond Framework was another significant learning. We feel that Porter’s Diamond Framework explains India’s competitiveness in software exports. Strong factor conditions – educated and competent workforce, English – speaking population, administrative infrastructure etc., related and supporting industries – educational institutions, communication networks, availability of hardware etc., context for firm strategy – creation of jobs, favourable currency conversion rates etc. and demand conditions – need for white collar jobs, low cost workforce etc. have all led to India becoming a pioneer in software service sector.

We have come to appreciate the implications of India’s currency depreciation with respect to the US Dollar on trade and industry in India better in the light of the discussion on exchange rate fluctuations. India’s depreciating currency has been beneficial for Indian industrial development and rise in exports such as software, refined petroleum, packaged medicaments etc.

The discussion on the concept of global, international, multi-domestic and transnational organisations helped clear our understanding regarding the meaning of these terms as well as link the strategy of the organisations to the need for local responsiveness and the need for cost reduction.

Reverse innovation as a concept fascinated us. It was enlightening to learn how products developed in and suited to the developing country markets could be successful in developed country markets. Further studying reverse innovation from the internet led us to a few remarkable examples:

1. Nestle Maggi Noodles - The 2-minute low cost instant noodles developed by Nestle especially for mass market in India and Pakistan has been has been introduced in Australia and New Zealand as a healthy and cost effective product.
2. Vicks Honey Cough – a honey based remedy for cold developed in Mexico has been launched in United States and European markets by P&G.
3. Taco Bell – Taco Bell has launched tortilla filled with melted dark chocolate designed for India in the US.

We found that an example of Blue Ocean Strategy can be the recently launched Patanjali branded products in India. The strategy of Patanjali is to implement the age old knowledge of Indian herbal medicine into the modern consumer products range, thereby creating a new market segment of herbal consumer products. This fulfils the conditions of being a blue ocean as the market place is uncontested, there is no competition, demand has been created and catered to and differentiation and low cost strategies are simultaneously pursued by Patanjali to achieve value innovation for the consumers. The Eliminate – Reduce – Raise – Create Grid can be used to explain Patanjali’s pursuit of blue ocean strategy. Patanjali has eliminated artificial chemical base, reduced prices, raised standards and quality and created herbal ingredients, wholesomeness, health and ‘nationalism’ to provide value to customers. Further, we observe that Patanjali products can be an example of reverse innovation in the days to come too.