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1) Environmental scan of foreign markets and conditions. Discuss a minimum of two foreign markets you suggest the organization enter and why these were selected. Discuss a minimum of one foreign market to be avoided and why. Include discussions on cultural differences, legal and regulatory differences and additional competition within respective the foreign countries.

For the purpose of our assignment, we will select the following international market to enter:

1) India
2) China

The primary reason for the selection of these two markets is the fact that these two nations are the one of the fastest growing and largest markets in the world, offering tremendous potential to companies worldwide. These two emerging markets are undergoing radical changes and have attracted the attention of companies and investors from all over the world.

Environmental Scan: India

In the recent years, Indian economy has undergone a radical change and is considered one of the fastest growing and largest emerging markets in the world and one of the hottest investment destinations in the world. More and more global companies have either set up their operations in India or are in the process of setting up their offshore subsidiary in this unique and attractive international market offering tremendous potential to companies. There are many factors which has contributed to the success of India. Some of these are:

1) India has a huge population which offers tremendous opportunity to marketers to sell their products to a very large audience. Further, the rising disposal income of the population is making it an attractive market for companies worldwide. Such rise in income and the growth in economy has been primarily brought by the IT and BPO revolution, which has made India the preferred outsourcing destination in the world. The buoyancy in the economy has attracted many investors to invest in India and earn handsome returns.

2) As mentioned above, India is today the preferred destination for outsourcing, be it Information Technology, electronics, biotechnology, Back Office Support or even Pharmaceuticals. India has a large pool of qualified, English Speaking labor force in abundant supply which makes it an extremely attractive offshore outsourcing/manufacturing center for companies worldwide. The cost of production, research and development and manufacturing are extremely low in India which makes it extremely unique and provides strategic advantage as compared to other nations.

3) Government has been extremely supportive to foreign owned enterprises and has opened the door by providing a range of incentives for Foreign Direct Investment in India, thereby attracting more and more companies to set up operations in India and reap the benefits of its cheap manufacturing, R&D and other opportunities.

As a key destination for manufacturing and outsourcing, India boasts a pharmaceutical industry that is growing at a fast rate of 9% per year. Many multinational corporations as well as Indian pharmaceutical companies continue to market drugs and tap into the country's skilled technical talent and resource base to conduct clinical trials and perform research and development. Spurred by increasing purchasing power, economic liberalization and impending recognition of product patents, India's pharmaceutical industry is currently making unprecedented investments in new molecule drug development. With the highest number of US Food and Drugs Administration-approved manufacturing plants outside the US, India has the potential to become the manufacturing hub of the world for patented drugs. A low-cost destination for both research and manufacturing, India can benefit the end-user in terms of reduced medicine cost. The projected boom in the outsourcing market in the WTO patent regime has energised the Indian pharmaceutical and contract research industry in a big way. All these factors have proved to be a boon for the pharmaceutical companies as well. All the major pharma companies have a presence in this country, including Pfizer. These large players are not only exploiting the extremely huge market potential of India, but are also setting up their R&D, manufacturing and production centers in India to take advantage of its extremely talented and large pool of qualified professionals who work at a fraction of the cost of their foreign counterparts. More and more FDA approved pharmaceutical plants are being set up in India to cater to the growing needs of the foreign pharmaceutical companies. Even India drug majors such as Ranbaxy are challenging global majors such as Pfizer with their own range of drugs, especially the generic ones. A recent example in this regard was Ranbaxy's challenge to Pfizer's blockbuster Lipitor drug, which is all set to shook Pfizer's dominance in this market.
Thus, we see that ...