- ISBN13: 9780470284247
- Condition: NEW
- Notes: Brand New from Publisher. No Remainder Mark.
Product Description
This book is the first strategic guide for multi-national corporations (MNCs)who are contemplating expanding into both China and India. Gupta and Wang explain how many MNCs view China and India solely from the lens of off-shoring and cost-reduction, and focusing their marketing strategies on only the top 5-10% of the population. This is a missed opportunity. China and India are the only two countries that constitute four realities that are strategically crucial for the global enterprise:
* Both provide mega-markets for almost every product and service
* Both have platforms that will dramatically reduce the company’s global cost structure
* Both have platforms that will significantly boost the company’s global technology and innovation base
* Both are springboards for the mergence of new fearsome global competitors.
This book aims to shed light on the brutal competition for markets and resources in China and India as well as lays out the strategic action implications for those companies who want to emerge as the global players of tomorrow.
Getting China and India Right is an authoritative and research-driven book essential to executives in global corporations, business academics and economists. Dr. Gupta and Ms. Wang have integrated vast amounts of quantitative and qualitative research to provide a valuable (and unique) perspective to anyone currently doing business or aspiring to win on the global playing field — which should be ANY company with global or multinational presence. I have already referred the book to several clients and CXOs wrestling with the complexity of leveraging the capabilities of these countries and tapping into the mega-markets represented by their populations. The response I have received has been only positive.
The book is organized in a logical manner which allows readers to take individual chapters of interest and dig right in or take a comprehensive perspective reading through front to back. Loaded with rich data, case studies and interview findings, Getting China and India Right shakes some myths many executives I have worked with have long held (e.g. its either China OR India, or its only about cost-saving). It compels executives to reexamine their current approaches and mental models about global competition much like Porter did with Competitive Strategy or Competitive Advantage of Nations. So, while it certainly shakes executives who are not “Getting it Right” but does not leave them paralyzed with just high level, inactionable concepts. It provides highly tangible strategic recommendations along with specific approaches to building the capabilities needed to win and detailed questions organizations need to answer.
Our firm has utilized many of Dr Gupta’s recommendations and approaches in supporting clients wrestling with these difficult issues. Many other books on China or India gloss over the complexity of each country or inherent strategic challenges, leaving readers with no clear perspectives on what they can specifically do to realign strategies. Other books also tackle each country as an individual case when in fact, as Gupta and Wang clearly demonstrate, one must look at BOTH countries on an integrated basis as part of a global network of strategic capabilities. This insight in and of itself makes this a MUST READ as it changes everything in how companies view the competitive opportunity/threat. Other insights on how to sell into these mega markets, win talent wars, or compete against domestic companies further arm companies to win.
The book was an easy read, written in a direct, authoritative and user-friendly manner. This likely stems from both Dr Gupta and Ms Wang’s style (I have seen them speak to large organizations) and they are excellent speakers, approachable, confident and engaging. High marks to Getting China and India Right as these countries are the critical battlegrounds for the next 20 years and Gupta/Wang provide executives essential firepower to win.
Rating: 5 / 5
The authors begin by identifying what they believe are some of the most common mistakes of U.S. companies vs. China nd India: 1)Viewing them solely from the perspective of off-shoring and cost reduction, 2)Building marketing strategies centered around just the biggest cities and the top 5-10% of the population, and 3)Underestimating the ambitions and capabilities of emerging competitors. They believe that any medium to large company that does not develop well-thought-out strategies vs. China and India could face severe threats to its existence within the next decade or so.
As recently as 1820, China and India together accounted for almost 50% of the world’s GDP; by 1950 it was less than 10%. Now it is rapidly climbing again. They estimate the average hourly labor costs for 2009 are $1.27 in China and $1.68 in India, compared to $25.34 in the U.S. Moreover, Infosys and Wipro (Indian IT firms), though much smaller than Accenture and EDS, are much more profitable, giving them a higher capitalization than one would otherwise suspect. In 2007, for the second time in history, the total deal size of emerging-into-developed economies is estimated to exceed that of developed-into-emerging economies. The emergence of global champions from India and China is taking place at a much faster rate vs. Japan and South Korea, due to India and China’s greater acquisition activity. (Another important contributor to China’s rapid expansion is its insistence on major foreign vendors participating with local Chinese firms in supplying large orders – eg. G.E. locomotives, Boeing Dreamliners, G.M. etc. automobiles.)
In 2005, the estimated U.S. number of graduate degrees in engineering, technology, and computer science was about 60,000 for the U.S. (half being foreign nationals), vs. 75,000 for China and 60,000 for India.
In 2005 China received $79 billion in foreign direct investment – highest in the world; however, compared to domestic savings of $2+ trillion and foreign exchange reserves of over $1.5 trillion the amount is trivial. (Don’t forget that a dollar goes much further in China and India.)
At any of the top five business schools in India, the entire class of graduating MBAs is placed in less than four hours, much less than for Harvard Business School.
In recent years, over 50% of economic growth in the world’s GDP came from emerging markets – mostly China and India. In 2007, China added more urban floor space than all developed nations combined; almost half of the world’s largest 45,000 dams are in China. The Three Gorges Dam is the world’s largest hydroelectric project (22,400 MW, cost $30 billion – expected to be repaid in ten years.) This year China is spending $50 billion on high-speed trains (more than the rest of the world combined), vs. $8 billion in the U.S., spread over three years; top speed for the Chinese trains is 220 mph (150 mph avg.), vs. 150 and 79 mph for the U.S. – ultimately, China plans on 25,000 miles of high-speed track. China’s Beijing-Lhasa Express exceeds 16,640 ft. in elevation – world’s highest, requiring special engines and oxygen equipment for its cars. China also has the world’s fastest train – 270 mph maglev from Shanghai to the airport at 270 mph, opened in 2004.
China and India are becoming competitive in areas beyond applied-IT, construction, and manufacturing. Both nations are seen as good areas for clinical trials of new drugs and therapies (one-tenth the cost in the U.S.), and China has become base for research into new drugs and stem cells. G.E. has large technology research centers in Bangalore and Shanghai, as does IBM (train controls), Intel, Microsoft, and Motorola in Beijing.
Bottom Line: Henry Blodget said it well: China is “not a land of sock and toy factories.” Neither is India. China and India present some of the highest growth rates in the world, and are emerging megamarkets. The Chinese economy is predicted to overtake ours by 2025. Our economy has become tired in comparison to the “New Asia” – economists and politicians should also read this book.
Rating: 5 / 5
In my review of Anil Gupta and Haiyan Wang’s previous book, The Quest for Global Dominance, co-authored with Vijay Govindarajan, I explain that they focus on four tasks essential for any company to emerge and stay as the globally dominant player within its industry:
1. “One, people must ensure that their company leads the industry in identifying new marketing opportunities worldwide and in pursuing these opportunities by establishing the necessary presence in all key markets.”
2. “Two, people must work relentlessly to convert global presence into global competitive advantage.”
3. “Three, people must cultivate a global mindset.”
4. “Four, in developing global strategies, people must take full account of the rapid growth of emerging markets, in particular the rise of China and India.”
In their latest book, Gupta and Wang note that, “Starkly put, China and India are changing the rules of the game” and many of the changes that have occurred in recent years are especially significant. The tasks are still important. However, with reference to the title of this book, Gupta and Wang point out that “being present in China and India [completing various tasks, however worthy they may be] is not the same as getting China and India right.” What to do must be determined by different perspectives and they are the focus of this book.
Hence the importance of fully understanding that only these two countries in the world “simultaneously constitute four stories rolled into one, each of them with the potential to be game changing in its own right.” The authors’ use of the word “game” in Chapter 1 is apt because it denotes players, opponents, and field(s) of competition, rules, officials, and scores. The word also connotes relevant mental and physical skills, practice, preparation, and engagement with opponents. Given these meanings and implications of “game,” now consider the stories “rolled into one,” any one of which could be a game changer, if viewed from these perspectives: “(1) China and India as megamarkets for almost every product and service, (2)…as platforms to dramatic reduce a company’s global cost structure, (3)…as platforms to significantly boost a company’s global technology and innovation base, and (4)…as the springboards for the emergence of a new breed of fearsome global competitors.” Gupta and Haiyan Wang explain why building robust strategies for both countries requires that the company doing so address each of the four “stories” head-on.”
Then in the next four chapters, Gupta and Wang explain the mindset needed to think of both China and India (not of one or the other) as “cousins,” not “twins” (“Chindia”); to think in terms of megamarkets and microcustomers to dominate the competition; to think of leveraging both China and India for global advantage; and think of what competition with “dragons” and “tigers” requires on the global stage. When examining each mindset, the authors cite real-world examples of companies that have developed and then been guided and informed by it. For example, Haier (home appliances), Huawei (telecommunications equipment), and Lenovo (PCs) have a significant presence in India; Bharat Forge (auto components), Suzlon (wind tunnels), and Tata Consulting and Infosys (IT services) have a significant presence in China.
Readers will also appreciate how carefully Gupta and Wang organize and then present their material, especially their core concepts and key insights. In Chapter 4, f or example, when explaining how to leverage both China and India for global advantage, they suggest that there are “three primary dimensions along which China and India are becoming central to global competitive advantage for a rapidly growing number of companies across a wide range of industries: cost arbitrage, talent arbitrage, and innovation. Each of the three sources of competitive advantage can be hugely important on its own. [That is also true of China and India.] However, if they can be leveraged in tandem, the impact can be especially powerful.” They then create a statistical context, a frame-of-reference, for seven specific recommendations for making decisions and taking actions along several fronts (on Pages 107-108) when leveraging China and India as hubs for global advantage. They cite Eli Lilly & Co. and Portal Player as exemplary U.S. companies and explain why. Later in the chapter, they pose a critically important question: What is the optimal mix of global and local for a particular global hub? They then provide a set of five universal guidelines (on Pages 120-121) “that can be used to frame the analysis and discussions that lead to deriving the appropriate answer.” Once again, Gupta and Wang include another real-world example: specifically, a mini-case study of Accenture’s development of global delivery capabilities in India, led by Keith Haviland (a British citizen) under the supervision of Karl Heinz Floether (a German executive). Haviland and his associates succeeded. How? There were many key decisions and actions that helped ensure a successful ramp-up. Seven are briefly discussed on Pages 122-123. Once again, Gupta and Wang not only identify “what,” they also explain “how” and “why.”
In the final chapter, they note that the term “mindset” refers to cognitive lenses through which people make sense of the world around them. They cite four examples of “looking at the future from the lens of the past” such as Thomas Watson, Sr.’s speculation in 1943, “I think there is a world market for maybe five computers.” Why do most companies (in 2009) lack global mindsets? Gupta and Wang suggest that their leaders “with the power to shape the company’s future direction are far removed psychologically, cognitively, and physically from the new epicenters of global change.” Reading (and preferably re-reading) this book as well as others and also consulting several sources (such as the China India Institute) will help them to develop a global mindset but only if their cognitive lenses are focused on the future, not on the past. There are also several steps that a company’s decision-makers must take. Anil Gupta and Haiyan Wang suggest four near the conclusion of the final chapter, then share these observations about the successful global corporation of tomorrow: “Organizationally, it will be managed as a globally integrated enterprise rather than as a federation of regional or national fiefdoms. And it will be led by business leaders who have global mindsets and are masters at building bridges rather than moats.”
I highly recommend this book to senior-level executives in companies that are already competing in the global marketplace or are now planning to do so. I also recommend it to senior-level executives in other companies that are within the supply chains of current and imminent global players.
Rating: 5 / 5
Getting China and India Right is an amazing source of insights for executives setting the global strategy. Anil and Haiyan’s book comes at a very important time as companies are re-evaluting their global strategies and business model. The book manages to stimulate your thinking while being highly readable. Understanding how China and India influence global development and the impact these cultures have on managing global clinical trials has been my focus for the past few years. Learning to apply such knowledge as a competitive advantage for Pharmaceutical and Biotech companies takes time. Getting China and India right offers that practical, insightful and compelling advice with suggestions that can be readily implemented. It represents years of learning and experience and is a must read to succeed on the global stage.
Eric Morfin, Partner, Critical Skills
Advisor to Pharmaceutical and Biotech Executives on Managing Global Product Development
http://www.biopharmapm.org
Rating: 5 / 5
A good book has the potential to become a great book when the law of unintended consequences takes over. Getting China and India Right is one such example. The writers strong observational skill provides real nuggets such as Frugal Innnovation, Employee Retention Bonds and Deffered compensation and How to be successful by thinking micro such as insuring a cow. All of these strategies which are standard in China and India suddenly are now relevant to the US and Western economies as we search for ways to restart our economies.
The business case histories that have been presented are compelling and lay out a road map for other business executives to follow. While in the US companies are in retreat; witness the flight of capital out of India back to the US this is precisely the time that a book like this one should be a must read for Wall Street executives. The fundamental domestic drivers in India and China are strong and will be key in a global recovery. What is true for the global economy is equally true for individual companies.
One observation that would have helped the average reader. If one is convinced as the recommendations of the book there is always the practical challenge of how to start. Gupta and Wang should publish a paper on the how to. One good way is for US companies to bring in Indian and Chinese expatriates in the US on their Board of Directors. The other is to begin to backward integrate through their supplier relationships. There are other techniques.
Overall a very timely book and a worthy contribution to the subject. It is an easy read but it is not light fare by any means.
Rakesh Kaul
Rating: 5 / 5