I agree Bolaji, this does seem like a sensible move for Toshiba. However, I believe that trying to cultivate a more local presence in India doesn't make sense for many electronics companies; India itself is still a very questionable market for many of the higher-end products specifically. Given the additional logistical and infrastructure issues still common in much of India, I generally think -- at this point -- it only makes sense to invest in India if you're planning on aggressively pursuing the Indian market.
Jokingly, I wonder if Toshiba has already outsourced their marketing department to India... have you seen their television ads lately? Inexplicably bad, in my opinion!
Every manufacturing companies would like to tap into the India growing market if they could. That is what Toshiba is willing to do and it perfectly makes sense. Local manufacturing of Toshiba products will surely help save money and help increase Toshiba's presence in the Indian market, which is a very promising market.
This could turn out to be beneficial for Toshiba in India. There is potential for huge sales growth and the fact that there is currently low level penetration of high tech manufacturing company in India makes sense.
With the korean giants LG and Samsung having strongly established their base in India and having captured a majority of market share in Consumer Electronic products in India , I wonder how much this move by Toshiba will succeed. Both of these Korean giants have displaced the earlier popular brands in Inda such as Philips, Sony, Akai and Sharp. It may be a tough battle fo Toshiba.
I think one of the biggest advantage for Toshiba will be the availability of cheap labor in India. There's a large pool of skilled and unskilled labor with a high rate of unemployment. With Chinese labor becoming expensive lately, India may become the next big attraction for manufacturers. I think the Indian government needs to work on ensuring stable domestic conditions in terms of security and infrastructure to further encourage foreign investment in the country.
Toshiba is not playing in the right sectors. It will be very difficult to enter smartphone and LCD TV unless they market agressively. They will still need 5-10 years to displace currenly popular brands such as LG, Samsung, Sony, Philips etc. I also do not know if Toshiba makes smartphones/TV?
Toshiba is the first of most likely many companies to commit to India's call for manufacturing. I think many global companies are going to wait and see how well Toshiba's investment in India works out before they invest more money in the country. India has huge potential to become a standard thought when looking to build or expand manufacturing facilities. India still has infrastructure problems they need to work out before companies fully embrace the idea of setting up shop over there. With the Indian people looking to upgrade major amounts of electronics, Toshiba should do well.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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