In 2021, Apple Inc. (Apple), the global manufacturer and seller of consumer electronics, computer software, and online services based in California, was considering entering the domestic market in India. With Tim Cook as leader, the company sold some of the world’s most popular products, including iPad, iPhone, iPod, MacBook, iTunes, Apple Watch, Apple Smart TV, and Apple Music. The company sold its products both through online and physical retail stores across the world, as well as distributing its products through third-party wholesalers and resellers. In India, Apple operated only through third-party partners and authorized resellers, which meant that it was not taking advantage of the government’s foreign direct investment opportunities by operating directly within the Indian retail market. The main challenge Apple faced was the price sensitive Indian consumer, which contrasted with the company’s premium pricing strategy. Cook was eager to enter the lucrative and fast-growing Indian consumer technology segment. However, the company would have to make a decision, especially with strong competitors such as Samsung Electronics Co. Ltd. (Samsung) already dominating the Indian market. Should Apple retain its premium status and pricing strategy or lower its prices to appeal to more price sensitive Indian consumers?
In 2017, the German grocery chain Lidl Stiftung & Co. KG (Lidl) opened its first 20 U.S. stores in the southern states of Virginia, North Carolina, and South Carolina. Key target segments of Lidl were budget-conscious customers, middle-class families with children, and elderly customers on a fixed income. Lidl offered lower prices than its competitors and quickly gained a strong advantage in the marketplace. Despite high early consumer demand, however, Lidl struggled to hit the correct target market for each of its different locations in terms of tastes and demographics. With plans for 100 U.S.-based locations by the summer of 2018, Lidl had set its sights high. What could Lidl do to meet its U.S. market goals and expand into the future?
In May 2017, IKEA India’s chief executive officer (CEO) was facing a dilemma. The company had decided to start its business operations in India by opening an experience centre in Hyderabad in November 2018, followed by furniture retail outlets across India by 2025. Key target segments were young, middle-class price-conscious consumers. IKEA India aimed to sell its products at a low price, aligning with its vision. However, the CEO was challenged with developing a strategy for business growth at a time when major global retailers were going bankrupt. He needed to figure out the appropriate pricing and supply chain strategy for India’s complex and diverse environment, while offering value to consumers.
In August 2015, imiAID, an Indian start-up that provided portable first aid kits for emergencies, was struggling to reduce its production costs and increase awareness about its product. The company began operations in Guwahati, Assam, and subsequently expanded the business to other states in Northeast India. Key target segments for imiAID included educational institutions and health-care service providers. Customers were somewhat aware of the product; however, imiAID wanted to develop a strategy that addressed its two goals of reducing production costs and increasing awareness about the imiAID Pocket First Aid Kit. Management had to decide how to best guide the company’s growth. Would imiAID be able to successfully operate in the emerging market of Northeast India in the long term?