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Strategic Management: From Theory to Implementation, 4th Edition by David E. Hussey

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CHAPTER 34

AGIP Petroli entering the Indian market

In early 1997 India, like China, was a rapidly growing market that many multinational companies had entered or were planning to enter. India's oil market was, in 1995, 1 million metric tonnes (MT) (60 per cent automotive, 40 per cent industrial) and was expected to grow in volume in the industrial sector and in monetary value in the automotive. The share of higher-quality products was expected to increase and therefore provide an opportunity for premium brands for companies like AGIP.

The main alternative entry strategies available to AGIP were:

  • Export products to be sold through local distributors
  • Establish a wholly owned company
  • Set up a joint venture with an Indian partner.

In addition, ...

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