The Cal
Poly MBA trip to India was an invaluable experience that offered me and the
other nine attending students a unique opportunity to experience the culture
and business practices of a rapidly developing country. We were immersed in a
totally foreign environment, and in many instances, pushed outside of our
comfort zone. I took this opportunity to challenge myself and resist the urge
to play it safe. I ate food that I had never even heard of, I spoke with
complete strangers on an overnight train ride, and I even rode on a reverse
bungee ride at an Indian theme park. My peers and I are extremely lucky that we
had the privilege to experience India in a way that most people never will.
Throughout
the trip, the most valuable thing I learned about India is that it has many
ambitious entrepreneurs who are willing to work tirelessly to take advantage of
emerging opportunities. These entrepreneurs know that Indians are not oblivious
to the goods and services available in developed countries. They want these
same goods and services, but with an Indian twist. The common factor among all
of the businesses we visited was that their leaders figured out a way to bring
in these outside goods and services in a way that appealed to the unique
cultural needs of Indians. Big Bazaar is a great example of a company that
imported a Western shopping style in a way that appealed to average Indian
consumers. Prior to shopping centers like Big Bazaar, Indian consumers had to
shop at several small establishments to purchase all of their goods and
services. Big Bazaar brought new value to these Indian consumers by creating a
more convenient shopping experience with their one-stop shopping design of
their stores. Rather than just importing the floor model of a Wal-Mart
supercenter, Big Bazaar knew it had to make a few adjustments in order to
retain the appeal of Indian consumers. They did this by giving their modern
stores the same traditional bazaar feel that Indian consumers were already used
to. This was achieved by piling goods directly on the floor rather than neatly
on shelves and even by not washing some of their produce, so that it retained a
more natural earthy look.
Groupon was another company that
brought an outside service to India by making a few necessary changes that made
the service more appealing to Indians. Most traditional Indian consumers have
the need to literally touch and feel what they are purchasing in order to
assure themselves that they are buying a quality product. This presented a
problem to Groupon, a site from which customers must purchase their goods via
the Internet and not in person. To resolve this issue, Groupon India allowed
its customers to pay by cash on delivery, so they could actually examine the
product before placing their payment. It was this type of adaptive ability that
really impressed me during my visits to these companies in India. In an
increasingly globalized world, the ability to adapt to the needs of other
cultures is becoming a crucial factor for success. This adaptive ability alone
shows me that these Indian companies could easily expand to other regions and
see the same success rates that they experience domestically. Being able to
adapt their company’s offerings to meet the region-specific needs of various
cultures is a monumentally important core capability that these Indian
companies will surely leverage in the future.
One Western product that has the
potential to be a successful venture in India is the concept of providing
referrals and opinions about businesses. This has already been successfully
accomplished in the U.S. through Yelp and Angieslist. While visiting Groupon
India, the company’s CEO, Ankur Warikoo, explained to us that India’s retail
and service markets are still very unorganized. He also mentioned that many
local businesses are perceived as inferior quality, which can likely be
attributed to a lack of adequate information. Many unsavory businesses in India
also have the luxury of having little or no customer-accountability, which
leaves future customers vulnerable to continued poor service simply due to a
lack of awareness. All these factors cause Indian consumers to follow a herd
mentality when it comes to choosing a retailer or service provider. They figure
that if everyone is going to one place, that place must be the best. This is
simply the result of a lack of information. This lack of information provides a
huge opportunity for ambitious entrepreneurs who are able to find a way to
provide that information in a way that is useful to Indian consumers. There is
a real opportunity in India to solve a huge problem of misinformation that
causes many Indian consumers to blindly choose where they will make costly
purchases. A few young entrepreneurs have already begun to tackle this problem
in India through their website, FRILP, which is a social media based platform
that allows consumers to get trusted referrals from friends and colleagues. The
website is derived from the concept of “FRIends heLP,” which is intended to
make it easier for Indian consumers to find trusted businesses (i.e. doctors,
plumbers, tutors, etc.). This organization is capitalizing on India’s lack of
trustworthy data on businesses and service providers, which leads to many
Indian consumers leaving it to chance when they choose where to spend their
hard earned money. Once this company gains some momentum and better establishes
itself in India, it would be a great company to visit during a future MBA trip.
One Indian business concept that could
be brought to the U.S. is the Kingdom of Dream’s idea of creating a theme park
that represents all of the different regions of the country. Kingdom of Dreams
allows visitors to experience all of India in one entertaining stop. Visitors
to the park can experience the culture, food, music, and art of each Indian
state. This is a brilliant concept for a theme park because it appeals to local
Indians and visiting foreigners, both of whom probably cannot afford to travel
to all of the Indian states during a single vacation. Kingdom of Dreams makes
it possible to at least get a sense of each Indian state’s differences and
distinct cultures. Bringing this concept to the U.S. would mean creating a
theme park that represents all fifty states. Although the extent of the
differences between the U.S. states may not match the degree of differences
between Indian states, it would be still be possible to represent some of the
key characteristics of each state. This hypothetical American theme park would probably
not appeal as much to U.S. citizens who tend to have higher disposable incomes,
and therefore possess a greater ability to actually travel to each state.
However, I can see this theme park being immensely popular among foreign
visitors who simply don’t have the time or money to travel throughout the
entire United States.
The most impressive business practice
that I took away from India was the importance of being able to adapt. The
companies we visited were successful because they were the best at adapting to
changing economic conditions, cultural practices, and technological
developments. Those who spoke at these companies made it very clear that even
momentary complacency can lead to a business going under. This was especially
true at the IT companies that we visited. Our visit to Cisco revealed several
amazing technological developments that made communicating, shopping, and even
receiving healthcare easier and more convenient. However, we were told that the
company never stops innovating because they operate under the assumption that
their current projects will become obsolete in the very near future.
Puravankara, a construction and property management firm, was another example
of a company that adapted its strategy to take advantage of India’s changing
industrial conditions. The company realized that southern India was developing
at a very rapid pace. They saw that industrial development in cities like
Bangalore and Chennai was becoming very diversified. Puravankara was one of the
few companies to capitalize on this by realizing that a diversified set of
industries meant a diversified set of potential homebuyers. This in turn
ensured that there would always be a steady flow of potential buyers even if
one or two industries started to decline. Puravanakara’s decision to build
affordable homes in these regions was a brilliant response to the changing
industrial climate, which gave their company a huge advantage in the form of
minimized risk and fast returns on their investments. Westerners could
definitely benefit from adopting this mindset of adaptability. Many business
owners in the U.S. refuse to accept the fact that developing countries are
becoming increasingly competitive. This is causing them to remain complacent in
their efforts to better compete on a global scale. Western business owners
should observe the way many Indian companies are staying ahead of the game by
constantly adapting their strategies to remain in front of their competitors.
Developing economies are showing
developed nations that small companies with a little bit of ingenuity can
perform just as well, if not better, than large companies with unlimited
financial resources. Many of the companies we visited are producing high
quality goods and services with a very limited set of resources that often
appear improvised. Core Jewelry is an Indian company that operates on a global
scale, offering a wide variety of high quality wholesale jewelry. During our
visit to their manufacturing facility, it was amazing to see how this company
was able to produce such large quantities of premium jewelry with so few
employees and such makeshift equipment. Puravankara also demonstrated how its
innovative thinking allowed it to cut costs and offer its premium housing at
unbelievably affordable prices. Rather than pumping more money into each
housing project, Puravankara focused on developing cost saving technologies
that would allow it to gain a more sustainable competitive advantage throughout
its future. Many of these Indian companies seem to excel because when they are
faced with a challenge or an opportunity, they do not automatically throw money
at the situation. Instead, they figure out a way to overcome the challenge or
seize the opportunity through creative solutions that cost very little. While
these Indian companies are undoubtedly being propelled forward by their
internal strengths, they cannot avoid the constraints they face as a result of
their developing nation’s poor infrastructure, overly burdensome bureaucracies,
and lagging educational system. Poor infrastructure makes it difficult to
transport goods, unprofitable to invest in underdeveloped regions, and
troublesome to connect the rural and urban areas. India’s government remains
largely decentralized, which makes it difficult to impose widespread economic
or social policies. This hinders the country’s development in terms of passing
progressive resolutions that would help the country better compete on a global
scale. India also faces having a disproportionately large young population that
currently does not have universal access to quality education. This means that
India may face a potential shortage of skilled and educated workers in the
future, which could hinder its economic development.
This trip tested my ability to adjust
my way of thinking while living among a different culture. At times it was
difficult to understand some of the differences between Indian culture and U.S.
culture. One of the main differences I noticed throughout the trip was the
appearance of disorganization that seemed to characterize many aspects of
Indian society. The traffic in India seems to operate without any type of order
or regulation. The buildings and neighborhoods seem to have developed
organically without much city planning. The general manner in which average Indians
go about their day seems much less structured than the way Americans live.
Indians compensate for this lack of order by being more resourceful and more
comfortable with the practice of figuring things out as they go along. As the trip
progressed I began to focus less on these differences and notice more of the
similarities between our cultures. Both Indians and Americans essentially have
the same goals in life; we just differ a little when it comes to the path that
leads to those goals. Overall, I was pleased with my ability to adjust to
Indian culture. Throughout the trip, I kept an open mind and did my best to
understand why things are the way they are in India. During a bus ride back to
the hotel, I had a discussion with some of my peers about the problems of
corruption in India. With such rampant corruption in India, it is easy to
automatically look down on Indian society. However, our discussion on the bus
opened my eyes as to why corruption is so widespread. If you are a police
officer or a local government employee and you are barely making enough money
to make ends meet, the temptation to accept a bribe is overwhelming. This made
me understand that they don’t accept the bribes because they are inherently bad
people. Rather, they accept the bribes because they are victims of unfortunate
circumstances. I think this type of enlightening discussion and understanding
were some of the biggest benefits of going on the trip to India.
During this trip, I was forced out of
my comfort zone on several occasions. There were the mobile street vendors who
would harass you while you were shopping. I was not used to this kind of
interaction, and I wasn’t sure how to react. At first I got angry and annoyed
with them, but as the trip went on, I got used to them and learned to just
ignore them. The overnight train ride to Mumbai was another occasion where I
was forced way outside of my comfort zone. The confined sleeping quarters and
lack of personal space on the train were a very new traveling experience for
me. This really opened my eyes as to how privileged Americans are and how we
take for granted all of the seemingly small luxuries of American life.
Surprisingly, the train ride actually turned out to be a fun experience. I
talked with complete strangers from another culture and heard some of their
life stories. I got past the lack of personal space and absence of privacy.
This actually made the train ride more fun because it pushed everyone to
interact more and get to know one another better. The overall trip itself was a
huge push outside my comfort zone. Before this trip, I had never traveled
abroad, so just getting to India was an intimidating feat for me. This trip
showed me that I am capable of traveling to the other side of the world and
enduring a rigorous course. With this experience, I am confident that I could
travel abroad for a business trip and successfully perform my job.
Our trip to India was full of surprises
and excitement that come with traveling to an entirely new culture. One thing
that surprised me the most about India were the acts of goodwill being
performed by a company we visited. With so much poverty, Indian society is
often perceived as very competitive with a mentality of every man for himself.
This perception was completely shattered during our visit with Lemon Tree’s
upper management, where we learned about the company’s voluntary efforts to
employ disabled people. A very good point was made during this company visit
that discriminating against disabled candidates means that you are probably
missing out on hiring some real talent. I was very pleased to hear that Lemon
Tree is trying to open up a hotel where the entire staff will be comprised of
disabled employees. This not only directly helps a historically marginalized
group, it also sends a message to the public that disabled people can perform
the same, if not better, quality work as everyone else.
After going on this trip, India holds a
whole new meaning for me. This country is a growing buildup of potential that
is beginning to show the world what it is capable of achieving. Having a
first-hand look at the resourcefulness and drive of Indian companies really
affirmed all of the reading I did about India becoming a rising power. Just
having this awareness about India is the most important thing I took away from
the trip. My trip to India was truly an eye opening experience that has
provided me with a deeper understanding of our changing world and a newfound appreciation
of a different culture.