Q1. Why did Arvind Mills choose globalization as the major route to achieve growth when the domestic market was huge?
Q2. How does lifting of ‘Country-wise quota regime’ help Arvind Mills?
Q3. What lessons can other Indian businesses learn from the experience of Arvind Mills?
Get the Answers Here
Get the Answers Here
Q1. Why did Arvind Mills choose globalization as the major route to achieve growth when the domestic market was huge?
ReplyDeleteAns.: The reasons of choosing global market by Arvind Mills are:
Market seeking motives, such as exclusiveness of product and service with high productivity, stringent in-line quality control and an encouraging manufacturing atmosphere.
Economic motives, such as profit making by implementing cutting edge technologies to achieve economies of scale and spreading R&D costs etc.
Strategic motives, such as buying-up of sick units, departing worldwide and gaining German and US brand names.
Q2. How does lifting of ‘Country-wise quota regime’ help Arvind Mills?
ReplyDeleteAns.: The lifting of ‘Country-wise quota regime’ surged a demand for high quality garments from India; while Arvind brands crossed over Rs. 60 crore in the year 2002 and planned to setup two more high tech export-oriented factories in India. And now, Arvind has the largest network of 64 outlets with 30 retail chains and 200 multi-brand outlets all over India. The current turnover of Arvind Brand is about Rs. 85 crore, which aimed to reach Rs. 100 crore with 1200-3000 outlets across 480-800 towns.
Q3. What lessons can other Indian businesses learn from the experience of Arvind Mills?
ReplyDeleteAns.: Arvind Mills is one of the trademarks of Indian market, which executed diverse patterns of business. Arvind brand extended the international brands in small towns of India. Of course, many other business brands in India now follows Arvind brand. The other Indian businesses should learn a lot from Arvind Mills: international outset of market; Multi-regional integration approach; union and attainment, strategic alliances, international delegates, global network formation; changes in internal organization, etc.