Indian Market Entry Model Study Of IBP Company’

Since the establishment of People’s Republic of China, the domestic vaccineindustry has made great contribution and met with the demand of epidemiologicdiseases prevention and control in China. However, comparing with other industries inChina, vaccine industry has not yet entered into internationalization. IBP Company isthe leading vaccine manufacturer in China, and facing great competition in its majoroversea market of India. Its current Indian market entry model cannot fight thecompetition.The author reviewed the theories on international market entry models andimpacting factors for entry model selection. Based on the theories, GPEST analysis isapplied to analyze macro environment of Indian, Michael Porter’s Five Forces analysisis applied to analyze competitive intensity and attractiveness of the vaccine industry inIndian market. And opportunities and threats of Indian vaccine market have beenidentified. The resources and abilities of IBP company have also been analyzed toidentify the key internal factors, strengths and weaknesess, for the Indian market entrymodel seletion.Based on external and internal key impacting factors analysis, the advantages anddisadvantages of three Indian vaccine market entry models for IBP company have beenevaluated, namely direct export entry model, technical agreement entry model anddirect investment entry model. Finally, investing a wholly owned sub company in Indiato handle the direct export of IBP’s vaccine into India market has been identified thebest entry model at the current situation.Author of this article hopes, that through the study on IBP’s competition strategyin Indian market for its JE vaccine, a successful model can be set up for theinternationalization of domestic vaccine enterprises, thus to facilitate China to becomethe major supplying country for the global vaccine market.