Expansion of The Business Of JR Group †MyAssignmenthelp.com

Question: Discuss about the Expansion of The Business Of JR Group. Answer: Summary of JR Group expansion in Mumbai, India The presentation is based on the expansion of the business, the CEO of the company JR Group decided to expand product the business in India. The first railroad in Japan was built by the British engineers who took place in 1872, between the Tokyo and Yokohama. JR maintains a nationwide railway network; the passengers may travel across the various JR companies without switching the trains and without purchasing the different tickets (Encyclopedia Britannica, 2017). Japan railways group is willing to expand the product super-fast japan bullet train. The strategy is formed by the CEO so that they wont face any problem while establishing the outlets in India. The CEO finds that India is the best place where they can expand the business because India is the most populated country with the population of 1,324,171,354. The 50% of the population of India consists of below the age of 25 and more than 65% people are below the age of 35. In the near future, the population of the country is defin itely going to show a hike. India includes more than 2,000 ethnic groups; these groups represent different religions in the country (World Population Review, 2017). The demographics of the country shows the increasing population along with that it shows the increase in the opportunity of the country for the super-fast bullet train. India is developing a country and this is the reason the Japan can think for the development of the bullet train in India. The country consists of many markets but out of these markets, the market of Mumbai is best suited for the company. Mumbai is well-known place metropolitan and it is determined as the best potential market for the company (Thomas, 2014). Mumbai is the capital city of India, with the most population of 18.4 million. The population of the country is increasing day by day so more and more will travel in the bullet train. The JR Group will face some of the challenges that can affect the future expansion of the country in Mumbai, India. Some of the challenges are discussed below:- Land Acquisition- The land acquisition will take place in Mumbai for making the way for the bullet train. The land will be required for putting the tracks for the bullet train and for establishing the railway stations. This will reduce the space for the road transportation. The acquisition of land is one of the crucial challenges that are faced by the company (Business Today, 2017). Substitute products- The route which is going to form the bullet train is Mumbai- Ahmedabad. There will be a direct bullet train, for that the customers might take flight instead of train (Chandorkar, 2017). This can substitute the product of the company, apart from it the company is looking to expand the business so that they can earn more of the profit. The company will keep the fare high for the traveling in bullet train; this might reduce the frequency of the customers for the bullet train. This reduction in the frequency of the customers will also create an impact on the profitability of the company (Dutta, 2017). Lack of Human resource development- The Company will check the skills and knowledge available in the human resource of the country because they have to look either the human resource is adequate or not for their business (Raghuram, 2017). There is a need for skilled engineers, managers, and the operation management employees in India who can manage the operation in the country. Considering the challenges faced by the company it is recommended to the company to resolve the challenges. The land acquisition in Mumbai will take place there is no way out for the same but company can keep the prices of traveling economically so that customer can afford it and they become the frequent customer which leads to the profit. The company should provide the proper facility and should cover the distance speedily which makes the customers travel through bullet train instead of flights. The substitution of the product will reduce and will help in accomplishing the objective of the company. The lack of human resource development shows that the company needs to provide the training and development to the employees so that they can manage the operations of the company along with the design. The senior managers of the company can visit India and spend some of their time in providing training to the employees so that they can perform their activities in right manner. Entry modes are those modes which are used by the company to enter the market where a company is looking to set the operations. There are different entry modes that can be used by the company to enter the Mumbai market (Meschi, Phan, Wassmer, 2016). Considering the present condition the government of the India is focused towards the development of the country. The company should use the joint venture to enter the market which helps the company to establish the operations with the help of existing company in India (Foss, Loasby, 2013). There are numerous benefits of selecting the joint venture, some of the benefits are discussed below:- Share cost Share risk Loss sharing Better resources New insights and expertise The joint venture provides many more Advantest to the JR group while setting the operation in India (Shishido, Fukuda, Umetani, 2015). The development of the bullet train in the India will bring the development in the country. The challenges faced by the company can be resolved by the company if they take the step correctly. References Business Today. (2017). India on track to get its first bullet train: Benefits and challenges in PM Modi's dream project. September 14th. Business Today. Viewed on 8th November 2017, https://www.businesstoday.in/current/economy-politics/india-on-track-to-get-first-its-bullet-train-benefits-and-challenges-in-pm-modi-dream-project-ahmedabad-mumbai/story/260248.html Chandorkar, A. (2017). Mumbai to Ahmedabad on the bullet train. The Hindu Business Line. September 12th. Viewed on 8th November 2017, https://www.thehindubusinessline.com/opinion/mumbai-to-ahmedabad-on-the-bullet-train/article9856326.ece Dutta, P.K. (2017). Before bullet train leaves Ahmedabad for Mumbai, here are the challenges for railways. India Todayin. September 14th. Viewed on 8th November 2017, https://indiatoday.intoday.in/story/ahmedabad-mumbai-bullet-train-sabarmati-narendra-modi-shinzo-abe/1/1047584.html Encyclopedia Britannica. (2017). Japan Railways Group. Viewed on 8th November 2017, https://www.britannica.com/topic/Japan-Railways-Group Foss, N., Loasby, B. (Eds.). (2013). Economic Organization, Capabilities and Coordination (Vol. 8). Routledge. Meschi, P. X., Phan, T. T., Wassmer, U. (2016). Transactional and institutional alignment of entry modes in transition economies. A survival analysis of joint ventures and wholly owned subsidiaries in Vietnam. International Business Review, 25(4), 946-959. Raghuram, G. (2017). Five challenges in the Ahmedabad-Mumbai bullet train project. Viewed on 8th November 2017, https://www.livemint.com/Opinion/iYrc3BoeBceG4uxR0ZzX9O/Five-challenges-in-the-AhmedabadMumbai-bullet-train-project.html Shishido, Z., Fukuda, M., Umetani, M. (2015). Joint Venture Strategies: Design, Bargaining, and the Law. Edward Elgar Publishing. Thomas, J. J. (2014). The demographic challenge and employment growth in India. Economic and Political Weekly, 49(6), 15-17. World Population Review. (2017). Mumbai Population 2017. Viewed on 8th November 2017, https://worldpopulationreview.com/world-cities/mumbai-population/