Feasibility Study - Expanding U.S. Company to India

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Feasibility Study Guidelines
In the current business environment, all firms are seeking to expand the business beyond international boundaries and want to utilize the opportunities available in overseas market. In order to expand business in the new country, it is essential to analyze the feasibly of the country in terms of nature of the business. It is also essential for the companies to analyze the availability and competitiveness of resources of firm according to the new market. This guideline includes discussion about the feasibility of Indian market for the expansion Papa John's Pizza Company, which is headquartered in U.S.

General Country Characteristics

Indian is one of the emerging economies and highly attracted by multinational firms to expand their business due to several favorable features of the country. The location of the country is in Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan. The total area covered by country is 3,287,263 sq km in which 2,973,193 sq km area is of land and rest 314,070 sq km area is of water. In 2013, total population of India is approximately 1.27 billion and among all 50% population is of people between ages of 0-25 years (India's Population 2013).

As the economical and social environment of the country is regularly changing, because of that several industries have been enjoyed immense growth. Currently, the principle industries of India are Food processing, royal industry in food and non-food sector, pharmaceutical, and mining, etc. In addition, textile, chemicals, steel, cement, mining, transportation equipment, petroleum, software, etc. are some principle industries (CIA, 2013).
The national language of India is Hindi, which is spoken and understood by 41% people and apart from this, there are 14 other official languages such as Bengali, Telugu, Marathi, Tamil, etc. (CIA, 2013). In addition, as an international language, English is also used by Indian people at high extent and become as status of official language and is used for political, national and commercial communication (CIA, 2013).

India is one of the diversified countries in term of religion and cultural environment. Hinduism is the major religion, which is followed by 80.5% people of India. In addition, some other religion available in India is Islam, Christian, Sikh, Jianism, etc. Due to differences in culture, Indian people have different preferences and social values.

Literacy condition of this is now quite better than past. Cruelty, 61% of people are literate and education has improved the social status of Indian people and technological development has increased their interest in western countries and culture also.

India is a republic nations and it has federal government. Different states of India have state government, which make rules and regulation for different industries in the states. Along with cultural and social diversity, there are several attractive feature and potential in India to welcome new business firms.

Papa John's Pizza Company

Papa John's Pizza is located in Louisville, Kentucky, USA, which is the third largest pizza delivery and takeout chain in the USA. In 1984, this chain has stepped up for the first time. John Schnatter transformed his father's tavern named as Mick's lounge into a pizza delivery store that is Papa John's Pizza. There are 4,200 establishments in more than 35 countries and 50 states. The mission of the company is to offer a brand value to the customer with better ingredients, better quality, taste and flavor with low cost, which is Better Pizza Papa John's (Papa John's International, 2013).

Economic Conditions

Expansion of Papa John's Pizza Company in India would be effective and viable when it creates suitability with India's economic conditions. India is developing country, where the economic environment and social development is totally different from USA. The purchasing power of consumers in India is low in comparison to USA so the purchase of location, equipments and resources will be easy and cheap in cost. Also, the currency of India has less value then USA like India's 1 rupee is equal to US $0.017 (Agénor, 2004, p. 414-419). For the expansion of the Papa John's Pizza Company, the knowledge of income distribution trends in India is also an important concern. India contains huge number of the population and all types of people are available here such upper, middle and lower class to target with different pricing strategy (Tribe, Nixon & Sumner, 2010, ...