From the research done above, the following points summarise the issues found with Napoli’s strategy in expanding Schindler into India. There were many issues that arose throughout the process of setting up Schindler India. We have broken these down into three main categories and listed the relevant issues below them.
Problems with Marketing
No customisation of products reduced the number of customers that were interested in buying a Schindler elevator. The business strategy created by Silvio was very rigid and did not allow for personalisation of products.
Silvio stated in his business plan that he would outsource the parts of the elevators from Europe. Due to insufficient research into the Indian economy, Silvio was not prepared for the increase in India’s input duties and this was not taking into consideration in the initial budget analysis.
Lastly, there was no presence of an after-sales service for customers who bought a Schindler elevator. This meant customer relationships were weak and this would not compete well with the strong market leaders who had occupied the Indian elevator market for decades and had strong brand awareness and loyalty.
Problems with Cross-Cultural Management
Having only visited India once previously, Silvio had not been fully submerged into Indian culture meaning he was entering unknown territory. Again, the lack of flexibility in his business plan meant that Silvio could not incorporate unexpected changes into the plan as they occurred. His lack of cultural knowledge exacerbated this issue, especially regarding the difficulties in the Indian economy. At the time of entry into India, the economy was recovering from the Asian Financial Crisis making business even more difficult.
Before arriving in India, Silvio had not undergone any pre-departure training and because of this was not aware of the full extent of differences between Indian and Swiss culture. This led to multiple misunderstandings occurring