Aro Granite Industries Limited: Competition and Exportation Challenges
In 2015, Aro Granite Industries Limited, a successful granite company in India, competed against rivals in Brazil and China to win a coveted, large order from the United States. The order was particularly meaningful because the United States was the most valuable market for Indian granite exporters. Aro Granite Industries had a good reputation and was both financially sound and technically advanced; however, like all granite companies in India, it faced a lack of raw granite despite India having one of the world’s largest reservoirs of good-quality granite. The Indian granite industry was also challenged by poor infrastructure for moving the granite, an inconsistent power supply, and an inadequate supply of skilled labour. The company’s promoter and managing director needed to ensure the company could overcome these challenges and deliver the order. How should he resolve the challenges and improve the overall import and export conditions for the Indian granite sector?
Collection: Ivey Business School (Canada)
Ref: IVEY-9B16M152-E
Format: PDF
Number of pages: 10
Publication Date: Sep 21, 2016
Language: English
Review date: Sep 21, 2016
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Description
In 2015, Aro Granite Industries Limited, a successful granite company in India, competed against rivals in Brazil and China to win a coveted, large order from the United States. The order was particularly meaningful because the United States was the most valuable market for Indian granite exporters. Aro Granite Industries had a good reputation and was both financially sound and technically advanced; however, like all granite companies in India, it faced a lack of raw granite despite India having one of the world’s largest reservoirs of good-quality granite. The Indian granite industry was also challenged by poor infrastructure for moving the granite, an inconsistent power supply, and an inadequate supply of skilled labour. The company’s promoter and managing director needed to ensure the company could overcome these challenges and deliver the order. How should he resolve the challenges and improve the overall import and export conditions for the Indian granite sector?
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Year: 2015
Geographic Setting: India
Industry Setting: Mining, Quarrying, and Oil and Gas Extraction;
Learning Objective
This case is suitable for courses in business policy and strategic management, international business environments, and international marketing. Students will have an opportunity to ·explore the state of granite production in India and of the granite trade internationally; ·discuss the challenges faced by Indian granite companies in their own business environment, in the global market, and, in particular, in the U.S. market; and ·propose strategies to enable a large granite company to meet its obligations for a substantial U.S. order for granite.
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