Rojina Shrestha.docx - 1 In case Nestle\/SAMSUNG wishes to set up its assembly plant in Nepal think and discuss the complexities SAMSUNG might face in

Rojina Shrestha.docx - 1 In case Nestle/SAMSUNG wishes to...

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1. In case Nestle/SAMSUNG wishes to set up its assembly plant in Nepal,think and discuss the complexities SAMSUNG might face in negotiationwith the Nepalese government before it reaches the final agreement.Which entry strategy would you recommend that would be beneficialboth to the host country and the SAMSUNG? [15]In Asia, only bigger players like Nestlé/Samsung was doing well in India andNepal.Nestlé is the leading Nutrition, Health and Wellness company and we arecommitted to improving people’s quality of life at every stage.This is the first time wemade Samsung product dealers assemble to display their technology/products thatwould be sold in the markets in the region. Their headquarters recently made a decisionto set up Samsung Southwest Regional headquarters based in Delhi to cover India,Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives.Since then, various companies have registered their companies in the industrydepartment to assemble their produce. The data for the production of manufacturing inNepal by the fiscal year 2075/76 shows that 20 different companies have beenregistered for the opening industry.Manufacturing goods producers are in tune with the government's policy of givingpriority to production-oriented industries rather than imports. The entrepreneurs weredemanding that customs tariffs on the import of finished goods and raw materials forproduction should be reduced by two levels. But through the current fiscal year'sbudget, Finance Minister Dr. Yuvraj Khatiwada has announced that customs tariffs willbe reduced by importing raw materials for production.Recommendation from my side:Sounds great, but is the Nepali market big enough:Even though there is no official data, we have recorded an average 30 percent annualgrowth in the market, particularly in the colour TV segment.But the political and economic crisis has caused a slump in the economy:Overall, we believe the slowdown is temporary. But I believe the market will recoversoon after the formation of a new government.New digital treats can we expect:We have plasma and liquid crystal tvs, fully automatic washing machines, refrigerators,digital camcorders, DVDs, laser printers and optical disk drives among others. All ofthese will be available in Nepal.Local distributors of electronic goods say their business is hampered by parallelimports:
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That may be happening in case of other brands. With Samsung, our distributor is Himelectronics. I don't see any problem with parallel import of our products.
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  • Spring '17
  • Rupesh Krishna Shrestha
  • Economics

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