Research On The HIL Localization Development Strategy Of Home Appliance Market In India

Over the past 40 years’ development since the implementation of reform and opening up policy,China’s economic growth has gradually slowed down.And the huge production capacity accumulated over the years needs to find new market opportunity.With the introduction of the "the belt and road" national strategy,many enterprises began to invest and set up factories overseas.As an important country along the line and the seventh largest economy in the world,India’s GDP has maintained an average annual growth rate of about 7.5%in recent years.With a population of more than 1.3 billion,India is the second largest population country in the world.It is a huge potential consumer market.Coupled with the introduction of the "made in India" policy of the Modi’s government,India has attracted a large number of foreign investors,including China multinational corporations,to invest and set up factories.In 2017 alone,there were about 100 Chinese companies registered in India,of which about 30%opened production bases in India by leasing factories or purchasing land.However,when investing in the Indian market,enterprises should fully recognize the risks behind India’s unique business environment and cultural differences.In the face of different business environment and cultural differences,what kind of development strategy to take has become the first major problem to be solved by the enterprise,and has also become a major topic of current academic research.However,many studies are limited to the objective environment of the parent company’s own strategic gene and target market,and do not fully consider the impact of the combination of multiple factors.Taking HIL as an example,this paper analyzes how to establish a feasible company development strategy system based on the core factors of parent company gene,target market competition situation and cultural differences,including vision,strategic objectives,business strategy and functional strategy.With the help of PEST model,five forces model and matrix analysis of key internal and external factors,This article first analyzes the environment which HIL lives while evaluates the resources and capabilities which HIL has,and then uses SWOT analysis tools to make a final decision on the its development strategy.The balanced scorecard is used to transform the company’s strategy into the company’s balanced indicator.The comprehensive budget system is established to combine the company’s objectives with the company’s key balanced indicators,and the personal performance commitment(PBC) is used to combine the objectives with each employee,so as to effectively implement the company’s strategy.At the same time,the paper puts forward three guarantee measures,including information system construction,cultivation of "RenDanHeYi" culture and improvement of risk control system,to guarantee the effective implementation of the company’s development strategy.In the process of analysis and research,the "I+i+n" umbilical organizational structure is proposed.The principle of the structure is that there is only one person in charge of each department,and the ultimate goal is that the person in charge of each department is assumed by the expatriate staff,provided that the expatriate staff needs to have the core competence and quality of the department head.Therefore,it is a transitional plan to appoint competent employees(regardless of nationality)as the person in charge.The advantage of this organizational structure is to avoid the potential risks caused by the lack of loyalty of local employees,and to solve the conflicts between expatriate managers and local managers by clarifying the responsibilities and rights.It creatively solves the problem of staff game between China and India in the current organization,and improves the efficiency and competitiveness of the organization.