TO IDENTIFY THE BUSINESS OPPORTUNITIES AND CHALLENGES FOR THE INDIAN DIAMOND FIRMS (SURAT) IN THE INTERNATIONAL MARKET
ABSTRACT
In this project study, it is identified that the Indian diamond firms have different business opportunities and problems in the international market. The main objectives of this study are:
-To identify the different motivational factors for the Indian firms to expand business operation at the global level.
-To determine the challenges faced by Indian diamond firms in Surat in context of global expansion
-To suggest different ways that can be employed by the Indian diamond firm to successfully manage the expansion of business operations at an international level
-To evaluate the alternative foreign market entry and development methods for the diamond firms
Methodology: The methodology used in the study followed qualitative research design, primary and secondary research method. Under primary research, interview method was used to obtain new data from 5 founder-directors of Indian firms in Surat diamond industry. The study adopted random sampling method under probability sampling. The data analysis chosen for the study was content analysis method.
Summary of Findings: The findings of the research reflect that motivation has come from globalization which provides opportunities for the market development of other countriesto promote craftsmanship of Surat diamond manufacturing firms for cutting and polishing firms at an international level. The findings reflect that capital requirements, credibility and trust factor, affordability by local firms, judicial facility, tax structure, country law, man-power and implementation of global marketing strategy effectively form the challenges faced by Indian firm in Surat Diamond Industry.GIA certification, Rapnet, promotion of skillsand expertise in cutting and polishingcan be different ways to attract international business. The preferred entry modes were joint venture and exporting and alternative method of entry was found to be through the development of e-commerce website preferred by the Indian firms in the diamond industry in Surat.
The study also provided the suggestions for successfully manage the expansion of the diamond firm at the global level.
Chapter 1: INTRODUCTION
1.1 Research Background
In today’s developing market, the business faces various opportunities and challenges in the international market due to globalization. Globalization is one major factor because, through globalization, the international & domestic market has increased to a large extent. In other words, globalization has generated new market opportunity for the firms at international level as well as provides a competitive edge for the large firms to target a large number of customers. Globally, India is the largest diamond center in the world which cuts and polishes the diamond. Nowadays, level of competition is increasing rapidly in the market due to which firms are facing major issues and challenges in managing and creating stability in their business practices and activity (Hashim, 2012). This change in the diamond market is global because of changes in the market demand and need of customers.
Generally, there are other business sectors like food sector, automobile sector, etc are also facing high-intensity competition in the global market and as similarly, Surat local firms of diamonds is also having same competition in both domestic and international market. This level of competition in a diamond market is limited because the customer base or demand for a diamond in the market is not high as compared to gold and silver.
Similarly, in Surat, there are various local firms that deal in the diamond business and they are also focusing to expand their business in international market. But at the same time, they also face challenges and issues which create hurdles for them in developing their business at the global level (Chelliah et al., 2010). For expanding their business at an international market, local firms can use various ways of the entrance of international market including joint venture, e-marketing, etc which provide support in overcoming the barriers. The use of these techniques will help the local firms to develop their competitive edge and business in the international competitive environment.
The market demand for diamond is very high internationally as there are some countries where customers demand diamond-like Russia, Canada, Australia, and China. In context of it, there is high chance or opportunity for Surat local firms to expand and establish their new venture in an international market. This expansion of business of Indian firms will provide them with various advantages in terms of increased profit margin, attracting & targeting new customer base and so on (Jamal, 2014). But even though, a company will also incur a high cost for entering to an international market and this is the biggest challenge for the local firms of Surat. This type of challenge creates barriers and issues for local firms successfully in terms of business management in international level of the market.
1.2 Research Questions
¬ What are the ways and the strategy that is used by the local diamond firms in Surat to enter the international market?
¬ What are the ways that can be helpful for the Indian firms to improve the current methods to efficiently contribute to the international market?
¬ What is a role of Surat city of Gujarat in the diamond industry with the consideration of international opportunities?
1.3 Research Aims & Objectives
The aim of this research is to identify the business opportunities and challenges for the local diamond firms in the international market: in the context of Surat. For accomplishing the research aim successfully, the below-stated research objectives will be accomplished by the researcher:
¬ To identify the different motivational factors for the Indian firms to expand business operation at the global level.
¬ To determine the challenges faced by Indian diamond firms in Surat in context of global expansion
¬ To suggest different ways that can be employed by the Indian diamond firm to successfully manage the expansion of business operations at an international level
¬ To evaluate the alternative foreign market entry and development methods for the diamond firms
This research will provide help to local firms that deal in the diamond market and want to expand the business in international market. In other words, this research will provide the support in developing understanding and knowledge by defining the ways which can help the firms to enter the international market. The research study has a wide scope as it includes marketing, globalization, etc. which can be very helpful and effective for developing an understanding of local firms about the international market environment (Ashtankar, 2013). Overall, this research assists in identifying the issues and challenges and opportunities which local firms might face while entering the international market.
In a current global market environment, there are various opportunities and challenges which impact directly on the business firms and on their development in terms of expending the business from local market to international market. At the same time, some ways are also recommended to local firms of diamonds so that they can easily manage & overcome the issues and challenges which they face while expanding their business to international competitive market. On the other side, this research study is also effective as it determines the factors which encourage and motivates the local firms to expand their business globally like local diamonds firms of Surat.
Additionally, this study also explains that how the motivation for local firms in the international market will ultimately provide the benefit to the company as well as to Indian Government. The benefits will be achieved by company and Indian government in terms of financial benefits, international business, increase in GDP rate & economy of India, etc (Cao et al., 2011). Moreover, this study would also be significant for the local firms in Surat as it will assist them to understand the international market of diamond and business practices which are to be performed for attracting the international customers.
But, as per the academic point of view, this study will be beneficial as it will develop the knowledge and understanding that how to grab the opportunities to enter the international market to local market. This research also defined the issues which local firm might face in the international market of diamonds and also ways through which firms can manage the issues. Thus, this research study will reduce the gap of difference in the existing literature outcome and will lead to developing valid outcome from this research.
Similarly, as per the professional point of view, this research would enhance and develop the researcher knowledge and understanding regarding the global market environment for local firms and this study will provide a great experience to a researcher for its future career in the marketing field. In addition, through this research, a researcher will able to develop its capability as well as skill for taking decisions in the future for its own business growth or future employer business growth.
The diamond market of India has developed to the great extent. In the last five years, the market growth rate of Diamonds market was observed between 10-15%. In this industry, there are 850000 employees are involved. In the context of employment, Indian diamond market is larges. The market size of the Indian diamond industry is 6000 crores (Kaveti, 2014). It is recognizing as the fasted growing diamond market in the overall world. The main features of the Indian are higher disposable income, changing outlook and attitude of customers. There are some leading companies in India Diamond market that are Adora, Tanishq, Kiah, nirvana diamonds and D’s Diamond. In this market, India export 40% of the market size. In the Indian diamond market, the work of cutting and polishing is popular that happens in the different cities of India. In this, Surat, Jaipur, Calcutta, and Mumbai are major cities are known as the hub of the diamond market. Indian diamond market enjoys the 60% market share in the context of the diamond cutting and polishing. But, at the same time, it is also found that completion is increasing in this market that is why, the profitability of the involved companies is decreasing (Rao, 2016).
Under this section of research, the researcher provides detail information about the business opportunities and challenges for the local diamond firms in the international market. In addition to this, it helps the researcher to gain the knowledge about the factors that would motivate the Surat local firms to work effectively at the global platform (Cavusgil et al., 2014). Besides that, the challenges will also discuss in regard to local firms when they operate their business at a global level. Lastly, identify the strategies/ ways to manage the business at an international market. Thus, based on that, research develops the understanding and as per that accomplishes the relevant research result.
2.1.1 Motivational factors for the Indian firms for global business expansion expand business operation
According to the research study of Singh &Rajan, (2015) it is clearly stated that there are some key factors that contribute high to encouraging the diamond local firms mainly globalization. It is fact that after the implementation of globalization, the companies get an opportunity to trade outside their local market. This practices also motivating the local diamonds firms to develop their business in international market. Similarly, Thorn, (2009) mentions the four motivational factors for the local firms. The author underlines development of the market, access to key resources for developing a competitive edge, capture knowledge in a foreign country and set up center for facticity/activity coordination as a motivational factor for firms to enter the global market. According to Brewster (2009), it is estimated that the Russia is the biggest market of diamond so, with the globalization, local diamond traders in Surat could reach towards the Russian market for expanding their business.
Thus, it can be stated that Globalizations is the crucial factor that pushes the local traders to explore their market and expand it at a global level. But in the views of, Contractor et al., (2015) the digital platform such as social networking sites, websites are one of the factors which trends are growing rapidly in across the world. So, it is considered as the best platform for the local diamond traders to expand their business. It would also help to enter into the international markets like Russia, Botswana, Australia and Canada as these are the biggest diamond market in the world. So, with the use of the digital platform, it becomes easy for the SMEs firms to get the recognition in the international market. This can be possible through the development of sites of interest and it allows the international traders to contact them. Such practices give the chances to local traders to cover the untapped market. Thus, the internet is considered as most reliable sources of motivating the Surat local diamonds traders to enter the international market and mark their position. Similarly, Savrul et al., (2014) depicted that Surat diamond traders also achieved huge recognition in the international market after the globalization and now, they are also using the digital platform to tap the uncovered areas.
The Indian market has established itself as a strong manufacturing sector in both cut and polished diamond category. Prime et al., (2012) states the increasing growth of Indian diamond industry is owing to growth in exports since 2010 as a result of favorable trade policies. Another factor responsible for the growth of this industry is highlighted in the study of Gupta et al (2010), which recognize the competent and skilled workforce in India as an inspiring reason to drive this industry. On the opposing side Rao and Bhatnagar, (2009) viewed the use of technology and its development and adoption by jeweler designers are contributing in the technology-driven designs and leading to high demands at the global level.
In the research study of Lee & Lieberman, (2010) it is identified that the international market entry theories are applied to the study. In this, there are various strategies that include such as a merger, joint venture, exporting, Licensing and Franchising etc. Such strategies help the small or local business traders to enter the international market. However, licensing & Franchising are quite a beneficial method as it gives chances to small diamond traders to achieve the license or franchise for operating their business in other nation. These strategies are low-risk entry modes as highlighted in the study of Meyer et al., (2009). In a similar manner, Tayar& Jack, (2013) mentioned that joint venture is another strategy which widely uses by the companies for entering into the global market and this is done through sharing ownership and control over property rights and operations. On the other side, Buckley and Casson (2009) state that merger strategy also allows the local traders to merge their business with any foreign agency in order to capture the new market. Thus, these strategies contribute high advantage to motivating the diamond traders to enter the international market.
In addition to this, Cavusgil et al., (2014) illustrated that different system and software in the advanced technology also provide support in terms to motivate the local diamond traders. This would be done through installing of various systems such as ERP (enterprise resources planning), CRM (customer relationship management), SCM (Supply Chain Management) etc. This software assists the companies to handle human, physical resources to supply chain. So this practice would reduce major issues of the small companies such as timely delivery, resources management. At the same time, it is quite effective in terms to save cost and time. Therefore, the investment in advanced technology is proved to be quite beneficial for the local diamond firms for capturing the larger market. In concern to this, Shaw (2015) OLI theory (ownership, location, and internalization) is presented and this theory stated that international market entry mode is decided on the basis of three components which is ownership, location, and internalization etc. Under ownership, it is finding the advantage that is specific to nature and nationality of the owners. While location signifies the different resources, institutions, and regulation which influences the revenue and cost of production and internalization find out the benefits which company gain from transferring ownership advantage to across national boundaries. Thus, by addressing these areas only then firms take an international market decision. Similarly, this theory also motivates the local diamond traders in Surat to take a decision regarding entry into the global platform through evaluating different areas. OLI theory provides support to local firms to successfully enter and lead the international market.
In contrary to this, Hennart (2012) argued that push and pull factors are the vital utility that attracts or motivates more to the local firms to go to global market. Pull factors are those forces which attract the local firms towards the foreign market. It includes the opportunity for growth, profitability. Such aspects motivate the firms to expand their business. In case of push factors, these are those factors that push the companies to operate their business in another country and these are saturation, slum period. Similarly, due to less demand of diamond in parts of Surat, local traders motivate or push to move into new international market where there is high demand of diamonds such as Australia, Canada etc. in regard tothis; high opportunity to achieve target market, simple government policy attracts the small firms to move into the global market. Hence, it is depicted that push and pull strategy are the crucial factors for motivating the local traders to go to global platform.
The literature also recognizes the Porter diamond model for recognition of opportunity for the diamond firms (Hamad, and Duman, 2013). Under this theory of the competitive advantage of nations, industry competitiveness can be determined through few determinants which are input conditions for production, demand conditions in the home country, related and support industries and a firm structure, strategy, market competitiveness, chances, and government (Mann and Byun, 2011).
(Source: Self Made)
Smit (2010) reminds that under the Porter diamond framework, the firm can gain market competitiveness if it permits growth of asset and skill development, an industry that provides better information of requirements product and process to firms and senior managers and workforce are a commitment for long-term investment.
2.1.2 Challenges faced by Indian diamond firms in Surat in context of global expansion
In the views of Meyer et al., (2011) there are various challenges that faced by the diamond traders when they enter into the global platform. Likewise, high competition is the major issue which threatens the local diamonds firms to mark their position in the host country. In regards, tothis, Govindarajan&Ramamurti (2011) stated that government policies are also a critical issue for the diamond local traders as the different nation has a diverse policy. Likewise, some country set different guidelines for selling of diamond so to follow this policy is become a complex task for the Surat local traders when they go for the global market expansion.
On the other side, Bell et al., (2012) explained that cost is also considered as a challenging task for the local firms in Surat as to operate their business in the global market involves lots of expenses such as employee training, marketing cost, production cost, land & labor cost etc. thus, such activities increase the firms overall budget and impact their capability to earn profits. From this, it is finding that cost and government policies are the major challenge for the local traders to function their business at the global network.
In the research of Moran et al., (2014) it is finding that joint venture, licensing and franchising also bring the challenges for the local firms in Surat. It can be in the form of the happening of frauds by the side of other partner and culture differences restrict the proper functioning of a business. Thus, these become the reason for a failure of partnership strategy. According to Meyer et al., (2009), these modes of contractual entry do not provide complete ownership in entering the foreign market. In support of this, Meyer et al., (2011), found that contractual mode of entry through licensing and franchising provide less control to the owner firm in business operations in the foreign market.
In a similar manner, Murphy (2010) depicted that cultural differences are also established as a big issue for the local firms in Surat. This is because differences in language, customs, and traditions bind the company in terms to properly marketing the market or to influences the target customer in an effective manner. Thus, such variation does not make the customers to easily connect with the company and it results in failure of a business. Similarly, Banalieva&Sarathy (2011) believed that business ethics is also varying country-to-country which also creates issues for the diamond traders to follow their code of conduct. They face problem in related to understand the cultural environment, their views towards the product, quality etc. thus, there is proper market research is the requirement for the local firms in order to avoid the challenge of ethics and code of conduct as it is very sensitive part of every country. Otherwise, improper ethical consideration makes the business fails in the international market.
In context to this, network theory of internationalization cited in Brush et al., (2015) posits that local firms in Surat face problems in accessing the international market successfully because of lack of experiences and expertise about different fields. Thus, less specialized staff becomes a critical issue for the firms when they perform functions into an international market. While studying the research study of Varkkey& Kumar (2013), it is clearly stated that in today’s competitive environment, there is a high need to use advanced technology in order to develop and grow the business to a next level. The use of advanced technology is very helpful for the firms to target easily the large market share and generate high sales. The use of advanced technology by the local firms like Surat is developing the biggest challenge for them. In oppose of it, Williamson et al., (2013) clearly depicted that the use of advanced technology is a huge opportunity for the local firms to enter an international market easily and efficiently.
In support of this, Chiao& Yang (2011) also elaborated that local firms need to adopt advanced technology in order to avoid the issues and challenges which they might face in the competitive international market. The use of advanced technology will lead the local firms to understand the international market as well as attract the customer easily towards the products & services. But at the same time, Chakrabarty& Nag (2014) argued to above statement as using advanced technology is not too simple for the local firms because for using this high technology requires a high cost and investment. In simple words, use of advanced technology requires finance for adopting or implementing it in the business process.
Additionally, from the research of Chiao& Yang (2011), it is determined that although RAPNET is one of the most trusted online trading networks that helps the firms to sell the diamond at international level and to get the best and reasonable price but at the same time, the use of RAPNET also created the issue for the firm to get the maximum amount of their efforts and the diamond. It is because there is a fixed price of the diamond in RAPNET. So, every firm wants to sell its diamond through RAPNET and due to this competition, the actual price of the diamond goes down that is a big challenge for the firm to get success in the market and to develop a good base of the customers. At the same time, from the research findings of Ashtankar (2013), it is stated that Gemological Institute of America can also be considered as a challenge for the firms of Surat. It is because Gemological Institute of America has defied the category and the parameters of the diamond that makes a cause of low margin for the firm and affects the business of the firms at international level. But in oppose of this, from the research findings of Cavusgil et al., (2014), it is determined that GIA provides a unique identity for the diamonds in the national and the international market and also stop the black marketing of the diamond in the market and provide the best diamond for the customers at reasonable and the effective price. Because of this, it can be determined that the Gemological Institute of America plays a very important role for the diamond firms in the international market.
In concern to this, Cao et al., (2011) illustrated that local firms of Surat can’t afford to use advanced technology for their business development and this technology is costlier and this might affect the business opportunity to enter an international market. On the other hand, there is another issue which Surat local firms can face is related to customer data security in terms of online payment or transaction. This is an issue can develop due to lack of adoption of advanced technology or due to change in the concurrency, etc. However, lack of adoption of technology will ultimately result in the development of issues and hurdles which local firms can face at a global level. On the other hand, Hashim (2012) determined that there are some countries which are already leading in the business of diamond in an international market and this is challenges for Surat local firms to meet.
Usually, diamond is treated as luxury products which every individual cannot afford to buy like small class and some middle-class people. In concern to this, Rao (2011) identified that selling a luxury product is a key challenge for the local firms to target the segment of customers which want or prefer to purchase diamonds. In addition to this, Ashtankar (2013) also explained that for targeting an international market, there is need to develop a marketing strategy which supports the local firms like Surat for effectively understanding the market as well as to expand the business efficiently. This is a challenge for local firms to develop a strategy in advance as there is always a risk to enter the international market. The involvement of risk in a business expansion is also a challenge for firms to mitigate because, in a competitive international market, there is a risk of failure at an initial stage (Cavusgil et al., 2014).
2.1.3 Different ways for to successfully manage the business operations and expansion at an international level
According to Meyer and Peng (2016), the management of business challenge at the global competitive market is through an understanding of the global market complexity. The author states that to consider the global market opportunity the local firms are required to understand complexities such as target market, potential risks, costs, business model innovation and risk management strategy. Similarly, McFarlin and Sweeney (2014) viewed that in-depth knowledge and understanding of the target country, tax structure, duties, currency fluctuations, logistics and legal laws, language and culture differences are crucial to managing international business challenges. In the findings of Okazaki and Taylor (2013) suggest the use of branding strategy to deal with international market challenges. This is an effective way to deal with foreign business challenges by local firms as brands play a significant role in creating the visibility in the foreign market and forms a crucial component in global marketing strategies of local firms that seek expansion opportunities. Thus, it can be understood that the brand architecture needs to be analyzed by considering the target market in geographic scope, products, expansion strategy and market structure and infrastructure.
Another approach by DaSilva and Trkman (2014) describes the adaption of the business models to manage business challenges in entering developing nations. It can be noted that author suggests the adaption of the firm business model to local markets in the target country in terms of geographic, cultural, economic and institutional, it can be added that the modification of business model according to the target country factors would be helpful for the local firms to create and deliver social and economic value with minimum cost and risk (Bell et al., 2012). The literature of international business management also highlights few researchers that emphasize on the programs such as diversity management and cross-cultural management program to deal with the business challenges related to operational risk in hiring new staff (Collings, 2014). It is essential to ensure that the firm is ready to invest in time and training the staff to develop equality, fairness, cultural respect and avoid discrimination in the global workforce and to be prepared to meet other business challenges.
The competition is another common business challenge that is faced by the local firms in going international. Deresky (2017) discuss the importance of aligning the business strategy with risk management plan. The author found that the alignment of business strategy with risk policy of a firm is useful to have a better vendor management and association in the global market. In support of this, Roh et al., (2014) underline the support of risk management strategy with a firm business strategy to reinforce the global supply chain to compete for the business challenges of operating in the global marketplace. It can be said that cautious selection of supply chain for the global market is a useful approach to the strengthening of the supply chain to ensure a firm competitive edge in the global marketplace. Thus, the literature reflects on different approaches to manage business operations that local firms need to consider in expanding the business to leverage on opportunities in the global marketplace.
2.1.4 Different foreign market entry and development methods for the diamond firms
In the research of Bell et al., (2012), it is determined that there are different ways that can be used by the local diamond firms in India to enter the foreign market. In this, the joint venture is one of the best entryways that can be used by the firms for exploring the business in the foreign market. It is because the use of joint venture makes easy the firms to successfully manage the business on an international platform. It also helps the firms by reducing the extra cost and the other market expenses. Because of this, it can be determined that the use of joint venture strategy for entrance in the foreign market is one of the best ways that can also be used by the local Indian diamond firms to go at international.
In the same concern of this, in the research of Buckley &Casson (2009), it is determined that franchising is also one of the best ways that can also be used by local Indian diamond firms to enter in the foreign market. For this, Indian local diamond firms that have the high brand name in Indian market can use franchising. In this, firms give their franchising for other firms to operate the business in another country as per the country rules and the regulations. It makes easy for the firms to effectively manage the business and to perform better without facing any issue and the hurdle. So, it can be determined that there are different ways that can be used by local diamond firms of India in the market. In the same concern of this, the porter diamond theory states that there are certain factors like economic condition of the firm, GDP, etc that are to be considered by the firm to beat global or entry in the foreign market. It helps the firms to select best ways for the foreign market entry and to effectively manage the business.
In the research of Okazaki and Taylor (2013), it is determined that although there are lots of business opportunities for the local diamond firms of Surat due to globalization at the same time, there are virus issues that are also faced by the local diamond firms in Surat. In this, different rules and the regulations of the government of different countries related to the import and the export of the martial can create the issue for the firms. Because of this, in order to overcome this issue and to expand the business in the international market, there are also some other ways that can be used by the firms, in the same concern of this, in the research findings of Bell et al., (2012), it is stated that the for better business expansion the business in the international market, it is needed for all local diamond firms of Surat to expand its business firstly in Hong Kong. The reason for this is that the export and the import duty in Hong Kong are quite liberal that is a direct advantage for the firms to expand the business in Hong Kong. In addition, from the research of DaSilva and Trkman (2014), it is also determined that due to low import and the export duties, it is easy for local diamond firms of Surat to go at international level for getting more business opportunities as well as it is also easy for the firm to expand the business in other countries after developing the business in Hong Kong. So, by overall discussion, it can be determined that there are various business opportunities for the local diamond firms of Surat after developing the business in Hong Kong first.
At the same time, from the research findings of Ashtankar (2013), it is determined that Surat is one of the leading cities in the production and manufacturing of diamond. The 90% diamond of the world is produced in Surat that is a big advantage of the firms of Surat. It is because they have a name in the market, so they can use different ways for the business expansion in the international market. In support of this, Cavusgil et al., (2014), determined that there are also some other ways to go international that can be used by the firm for business expansion. In this, joint venture, franchisees, exporting, turnkey projects, etc that can also be used by local diamond firms of Surat for better business expansion. The reason in this is that the use of all these strategies will make easy for the firm to expand the business without facing any issues and hurdle as well as it will also help to keep safe the extra cost of the local diamond firms in Surat. It will also reduce the effort of the firm and will assist the firm to develop a good customer base.
Chapter: 3 RESEARCH METHODOLOGY
The research methodology is a system by which the researcher can consistently solve the problem of the research. The researcher applies different tools and techniques during the research to complete the research in a scientific manner (Blumberg et al., 2014). In addition, the research methodology not only offers the different methods to the researcher but also helps to solve problems with the scientific logic. The proper reasoning of the applied method is defined by the researcher to solve the research issues in the proper way. The researcher designs the methodology in order to solve the problem of the research and it is very essential for relevancy in this research.
The research philosophy is a significant part of the research that provides the basic understanding regarding with research study in the mind of the researcher. In this part, the researcher develops the hypothesis about research topic by the assistance of similar studies and observations (Flick, 2015). The researcher can utilize two type of research philosophy to acquire the understanding of the research topic and issues such as interpretivism philosophy and positivist philosophy. In this research, interpretivism philosophy is applied by the researcher rather than positivism philosophy. The reason behind applying interpretivism philosophy, it helps the researcher to develop hypothetical understanding concern to research matter. At the same time, interpretivism philosophy helps the researcher to provide the detailed information about the international market to diamond firms and to understand the related issues and opportunities (Koul, 2009). In this research, the researcher needs to use the available data as a secondary source but the positivism philosophy restricts the researcher, so interpretivist philosophy is used. In the interpretivist philosophy, there is a need for the researcher to develop the understanding by the use of available information and do not use experiments for data collection. But positivism philosophy needs the experimental data that is not suitable for this research.
The researcher provides solutions to the research problem through the use of appropriate research approach. In order to present the reliable and effective outcome of the research, the research approach is used by the researcher. In addition to this, the research approach is widely used by the researcher to provide the research effect in a conclusive way and accomplish the research on time (Mackey &Gass, 2015). For this, the researcher essentially uses deductive and inductive two kind of research approach that helps the researcher to provide proper guidance for achieving the research result. In concern to this research, the inductive approach is more suitable then deductive approach to make the research effective. It is because the researcher wants to build up own theory for the research that is most suitable for this research. Moreover, in this research, the deductive approach is not appropriate because this research includes the interpretivism philosophy which is relevant for the inductive approach (Marshall and Rossman, 2010). In order to this research, almost research issues are based on the theoretical aspects which also restricts the researcher to apply the deductive research approach. Because of these issues, the researcher has to apply the inductive research approach for this research and provide the successful outcome of the research.
The research design plays the critical role to gather the data correctly and analyze the collected data in an orderly way. In concern to the research design, there are three types, for instance, qualitative, quantitative and mixed research design (Hammersley &Traianou, 2012). The research design is used by the researcher on the basis of the need for research issues due to different uses of each research design. The qualitative research design is based on the subjective judgment that highly focuses on the quality of the research. On the other side, quantitative research design is used by presenting the data in a statistical manner such as tabular and graphical format. While the mixed research design is the combination of both qualitative and qualitative research design that provide batter outcome of the research.
In this research study, qualitative research design is highly appropriate because it helps the researcher to provide the quality of the research. At the same time, qualitative research design helps to identify the major challenges and opportunity in the international market for the diamond firms (Qu and Dumay, 2011). In this research, the researcher develops the clear understating by using the subjective data and there is no use statistical data to acquire the research outcome. This research provides the small number of sample size that is appropriate for the qualitative research. But in concern to quantitative research, it needs a large number of sample size for the research. So, the researcher has selected the qualitative research design for this research.
The research strategy helps the researcher to provide the right direction to accomplish the research in solving the research issues. At the same time, research strategy also confirms the available information that is it suitable to mitigate the research problems or not. In order to develop the proper research strategy, the researcher takes the help of different studies according to the need of research problem like survey, experiment, literature reviews, etc. In concern to this study, the researcher has selected two most important strategies to collect the research data like literature review and interview (Crowther & Lancaster, 2012). It is because the literature review provides the reliable data from the different source of secondary data and the interview provided the thinks of the founder-director of the diamond firms at Surat.
Both the research strategies helped the researcher to collect the information concerning the international market for the diamond firms. Furthermore, literature reviews helped the researcher to provide different sources for collecting the data like journals, websites, articles, statements, and newspapers (Silverman, 2016). From the use of these sources, the researcher compared the collected data to provide the reliable outcome of the research. On the other hand, the interview helped the researcher to provide the qualitative data by asking the questions to the 05founder-director of different diamond firms at Surat. The participants provided their views and opinions about the international market for the diamond firms and issues in internationalization of the firm.
The time horizon is an estimated length for completing the research study and provides the obligation to accomplish the research in the estimated time period. In a research study, there are two types of time horizon that are used by the researcher such as cross-sectional and longitudinal. In order to this research, the researcher will select the cross-sectional time horizon for effectively carry out the research results on time (Smith, 2015). The main aim of selecting cross-sectional time horizon, this method is selected by the researcher if the data is collected once during the research or there is no need to collect the data again and again. At the same time, this research should be complete in the less time that is provided for the research, but the longitudinal time horizon consumes the time of the researcher due to the collection of data more than one time. Additionally, the longitudinal time horizon needs high cost for data collection but this research cannot bear high cost, so the researcher also selected the cross-sectional time horizon.
In this part of the research, the researcher collects the data and information about the research. The collection of the data is done the researcher as per the need for the research and connected issues. Primary and secondary data collection methods are two methods that use the researcher to collect information (Srivastava 2013). Under the method of primary data collection, the first-timedata can be collected through survey, observation, focus group, interview, etc. On the flip side, the in secondary data collection method the data can be obtained from the secondary sources such as books, newspapers, articles, journals, websites, etc. The secondary method is considered to be helpful to provide support and reliability to the research.
In this research study, both the methods are used by the researcher to collect the data and information about the research and to provide the appropriate research result. But, the use of primary data through interview consumed the time of the researcher as a comparison than secondary data collection (Taylor et al., 2015). In the primary data collection, the researcher used the interview method, in which the researcher targeted the 05 founder-director of the diamond firms and asked some questions regarding the issues and opportunity for the firm in the international market. For making the question, it is kept in mind by the researcher that the questions should fulfill the needs of the objectives of the research. It is because this interview exposes the reliable and honest results of the research. On the other hand, to collect the secondary data for the research, the researcher has selected the literature reviews method. In which, the researcher has used the past research on the related topic to convert the data in information.
The data analysis methods help the researcher to analyze the collected data in a systematic way and generate the final outcome of the research. Additionally, the data analysis is also helpful for the research to provide the evaluation and security of the collected information (Vaismoradi et al., 2013). The researcher can use several methods for analyzing the data to achieve the research outcome like- content, statistical, cluster, factor analysis, etc. In concern to this study, the researcher used the content analysis method due to analyzing the data of interview questions. In this research, the researcher analyzes the qualitative content analysis to analyze the validity and reliability data for the research. In this analysis, it is found that the data are observed from the interview are comparatively same which was collected from the interview questions. It helped the researcher to identify the opportunity for local diamond forms of India in the international market. With the use of this opportunity, the local diamond firms of Surat can develop their market to globalize their firm and earn high profit for the company.
The researcher has to consider the ethics during the research to provide the relevancy. At the time of collecting secondary data, the researcher has highly focused on the plagiarism and copyright to reduce the ethical problems in the research. In addition, the researcher also provided the same respect to the past authors whose data are used with the use referencing and in-texting in the given data in the research (Vaismoradi et al., 2013). At the same time, the credit also provided to the past researcher about their finding. Hence, if any kind of hindrance is found in the research then help to provide the support to mitigate this problem. On the other side, all the rules and parameters of the university are also followed by the researcher to eliminate the research issues and if there is an issue at the time of submission of the report then undertakes to remove it. Similarly, it is also requested to eliminate the ethical violation that is found in the research related with the copyright, patent and plagiarism.
In this research study, it is found that the researcher has used both primary and secondary data that consumes the time of the researcher(Silverman, 2016). It restricts the researcher to high focus on the important aspects which are related with this research. In like a manner, the researcher only focused on the interview of only 5 persons that have different views and opinions about the research topic. So, in future, the researcher has an opportunity to conduct the interview of many people for reliable and relevant data about the research. At the same time, this researcher is only based on the qualitative analysis of data method that is not able to present the data in graphical, chart and table format and it can be said that the statistical representation of the data is not possible. So, in future the researcher has an opportunity to use the quantitative data analysis method for enhancing the efficiency in the future research.
The methodology describes how the researcher through a methodological investigation identify the business opportunities and challenges for the Indian diamond firms in the international market. The population sample includes all the participating founder-director of firms of Surat diamond industry. the chosen sample size was5founder-director of the diamond firms by means ofadopting random sampling method of probability sampling. Thus, 5 founder-director were selected, and primary data was obtained with the use of interview method under the qualitative research design of the study. The chosen method for data analysis is by content analysis method to fulfill the research aim and objectives.
What is your position in this firm?
The three respondents specified that they hold position as the ‘Director’ of the firm and one respondents were the ‘Founder’ of the firm.
From how many years you are working here?
From the all respondents, three respondents stated that they have been working from last 35 years and two respondents stated that they have been working from last 37 years in Surat.
What do you think about the scope of the local diamonds firms of Surat in the international market?
Two respondents stated that there is lots of scope for all local diamond firms of Surat in international market. It is because Surat is the hub of the diamond and most of the diamond of the world is produce in Surat only. Because of this, it can be stated that all local diamonds firm of Surat have the wide opportunities at international market. But at the same time, two respondents stated that although there is a wide scope for all local diamond firms of Surat at international market but at the same time, there are also various issues that are faced by the firms in terms of cost, man power, etc. so, finally, it can be determined that there were some controversial views of the respondents regarding the scope of the local diamonds firms of Surat in the international market. One respondent firmly said yes, there is scope and added that marketing appears to be the feasible option which is required to be selected to get the scope in international market and the firms need to establish a strong platform to leverage opportunity in foreign markets.
According to you, what is the reason behind to be a big diamond hub of Surat?
Three of the respondents stated that Surat is a big diamond hub but there is not any particular reason because as compare with other cities of India, it is also a growing city. In the GDP rate of India, there is also a high contribution of Surat and the labor of Surat also have the sufficient information about the cutting and polish of the diamond. It is a big reason behind to be a big diamond hub.In like manner, two respondents stated that diamond business is very old in Surat and Surat is not only popular for diamond business only but it is also popular for the other business as well including textile, information technology, etc.
What do you think about the ways and the strategies that can be used by you to go at international?
Four respondents stated that there are various ways that can be used by them to go internationally but at the same time, they also defined that effectively cut the diamond and police the diamond effectively are the best ways for us to go at international. It is because cut the diamond effectively and polish the diamond attractively has the wide demand in international market and people like to buy the diamond with a sharp cut and polish. So, these are the ways that can be helpful for local diamonds firms of Surat to expand the business at international level. But at the same time, one respondent stated that keep the price low or competitive is the best way for all local diamonds firms of Surat to go at international level. The reason in this is that nowadays, there is a high level of the competition that creates the issue for the firms to sustain in the international market. So, if the price of the diamond is low then it will provide the competitive advantage for the firm and will easy the firm to go at international.
According to you, among joint venture, exporting, franchising, etc, which is the best way for local diamond firms to go international?
Two of the respondents stated that exporting the products and the service is one of the best ways that can be used by local diamond firms of Surat to go at global. The reason in this is that it will reduce the expanses of the firms and will easy to handle the all working operations effectively. In this, firm can hire the agents and distributors and these agents and distributors will represent the business of the firm at international level. So, exporting is the best and effective way for the local firms in Surat. At the same time, three of respondents stated that joint venture is one of the best and suitable ways for local firms of Surat to go at global and to get the competitive advantage. It is because through joint venture, there is no need for the firms to do the more expanses on the customer and the market because it will make easy the firm to successful manage the business and to perform well.
In your views, is there any other appropriate ways for local diamond firms of Surat to go at global?
All respondents stated that website development is one of the best and effective ways to use by local diamond firms of Surat to go at global. It is because through this, it will easy for the firms to overcome the issues of business expansion and to perform better. At the same time, they also stated that the use of website also assists the firms to target the maximum customers in limited time and in an effective manner. Because of this, it can be determined that the concern of the people respondents regarding the use of another way to go at global was same and it was the use of website.
According to you, what are the major factors that provide the motivation for your types local firms to go at international?
Three of the respondents stated that there are various factors that motivate them to go at global. But at the same time, the expertise and the talent to cutting polishing of diamonds provide them motivation to go at global. It is because this expertise and the techniques are not available anywhere across the world and because of this, Surat is the hub of diamond across the world. But at the same time, two of respondents stated that availability of the skilled labor and the hard-workinglabor in Surat related to the diamond is the major factors that provide the motivation for them to go at international. It is because it makes easy them to perform better and to target the aim and objectives. So, it can be determined that there are various ways but cutting polishing of diamonds and the availability of skilled labor are the major factors that provide the motivation for local diamond firms of Surat.
In your views, RAPNET makes easy for the local firms of Surat to go global and to perform better?
In this, two respondents stated that the use of RAPNET is one of the best ways for the firm to get a name and fame in the market. It is because it helps the local diamond firms to get a unique image in the international market and easy to sell the products at international level that is not possible by the local diamond firms of Surat. But at the same time, three of respondents stated that there is no role of the RAPNET for the local diamond firms in Surat because RAPNET affect their market and due to RAPNET, they are not able to get the effective price of their diamond. Because of this they stated that RAPNET created the business issue for local firms of Surat in terms of earning profit and to perform well in the market. Finally, it can be determined that there was a controversial view of the respondents regarding the RAPNET.
Do you think that, Gemological Institute of America plays a vital role for the diamonds in terms of describing the parameters of the diamond quality?
Four of the respondents stated that GIA is playing the vital role in consumers mind because it is developing the trust among the customers about the diamond reality. It increases the customer base of the firm and also provides the competitive advantage for the firm. At the same time, they also said that through GIA, they have a certificate of diamond that helps to build up trust and also provide a unique identification for the firm in the international market. Because of this, they were in the favor of the GIA and think that Gemological Institute of America created a new evaluation in the history of diamond selling.
As per your views, initially expand the business in Hong Kong international market makes easy the local firms to expand the business at international market or different countries as well?
In this, all responders have their same views and they stated that Hong Kong is the port from where they can easily start their business because of free import duties and some different other benefits They also stated that expand the business directly in the other countries is quite time and cost consuming and affect business of the firm as well. So, first go in Hong Kong then from Hong Kong expand the business is an effective way for all local diamond firms of Surat. Because of this, it can be determined that there was a positive view of the all respondents regarding the expanses the business first in Hong Kong
In your views, what are the challenges that are faced by the local diamond firms in the international market?
In this, two respondents stated that cost is one of the major issue or the challenge that are faced by local diamond firms of Surat because to go international market, there is a need of lots of capital for the firm that affect the business of the firm and the purpose to go at international level. But at the same time, three of respondents stated that man power and the effective use of the international marketing strategy is the major issue for the firms.
What do you think, what are the ways that can be used by the firms to manage the issues of local diamond firms of Surat?
All respondents stated that the better management of the funds and the better implementation of the marketing strategy can be the best ways for the all local diamond firms of Surat to overcome the various issues and to make easy to go at global.
From the above findings, it can be interpreted that there are founder-director from different firms in Surat that are working from last so many years in diamond. It is because Surat is one of the big hub of the diamond that is why there are various firm that are working in Surat to get the competitive advantage and to perform well. At the same time, it can also be interpreted that there is lots of scope for the local diamond firms of Surat at international market. It is because most of the diamond across the word is produced in Surat only because of this there are various opportunities for the firms at international market. In the same concern of this, from the research of Thorn, (2009) mentioned that Surat is one of the major and the big diamond hub and the diamond of Surat is famous across the worlds. It is not new in Surat from last so many years; the business of diamond is major earning source for Surat people. So, it can be determined that there are various opportunities for local diamond firms of Surat at international market.
Along with this, it can be interpreted that there are various reasons for the firms of Surat local diamond to go at global. In this, Tapti River and close to Arabian Sea as well as the growing GDP of India are the major reasons that motivate the local firms of Surat to go at global. Globalizations are the crucial factor that pushes the local traders to explore their market and expand it at a global level. Additionally, from the views of, Contractor et al., (2015) the digital platform such as social networking sites, websites are one of the factors which trends are growing rapidly in across the world. They also stated that at international level, Russia, Botswana, Australia and Canada are the major countries of diamond that provide a motivation for the all firms,so it is considered as the best platform for the local diamond traders to expand their business.
Apart from this, it can be determined that there are various ways and the strategies that can be used by the local firms of Surat to go at international level. In this, effectively and polish the diamond attractively and keep the price low are the major strategies that can be used by the local firm at international level. In support of this, Lee & Lieberman, (2010) it is identified that the international market entry theories are applied to the study. In this, there are various strategies that include such as a merger, joint venture, exporting, Licensing and Franchising etc. Such strategies help the small or local business traders to enter the international market. In addition, from the overall result, it can be determined that exporting and hire the agents and distributors are the major ways that can be the best ways for the Surat local firms to go at global. In the support of these findings, Smit (2010) determined that under the Porter diamond framework, the firm can gain market competitiveness if it permits growth of asset and skill development, an industry that provides better information of requirements product and process to firms and senior managers and workforce are a commitment for long-term investment.
Along with this, from the overall discussion, it can be stated that although, there are various ways that can be used by the local diamond firms of Surat but at the same time, website development is one of the quite appropriate ways for the all local firms of Surat. It is because through website, it is easy for the firms to target the maximum number of customers in limited time and the cost because of this, it can be interpreted that use of website is one of the best and effective way for the firms to go at international. In the favor of this statement, from the research of Tayar& Jack, (2013), it is stated that the use of website overcome the marketing and sales efforts of the firm and makes easy for the firm to target the large number of customers in less time and efforts., They also stated that by using the website, it is also easy for the firm to present the various diamonds for the firm at single location that is helpful for the firm to perform better and to get the competitive advantage.
Besides from this, it can also be interpreted that there are various issues and the challenges that are also faced by the local diamond firm of Surat to go at global. In this, it can also be determined that cost and manpower are the major issues that are faced by local diamond firm of Surat during the business expansion at global. In the support of these findings, Govindarajan & Ramamurti (2011) stated that government policies are also a critical issue for the diamond local traders as the different nation has a diverse policy that create the issue for the firm in the successful business management. In support of this and in the same result of these findings, Bell et al., (2012) explained that cost is also considered as a challenging task for the local firms in Surat as to operate their business in the global market involves lots of expenses such as employee training, marketing cost, production cost, land & labor cost etc. Because of this, it can be interpreted that there are various issues and the challenges that are faced by the firm and affect the business expansion of the firm.
From the same findings, in the research of Moran et al., (2014) it is determined that joint venture; licensing and franchising also bring the challenges for the local firms in Surat. It is because there are various rules and regulation that are faced by the local firm at international level for business expansion. So, it can be determined that local firms can face various issues and the challenges in the business expansion at international market. These all findings are also supported in the research of Murphy (2010) by stating that cultural differences are also established as a big issue for the local firms in Surat. It is because there is a difference in the cultural of the people in other countries in terms of their life style, language, etc. that create the issue for the firms to successful manage the issue and to get the competitive advantage. At the same time, it can also be interested that there is a vital role of RAPENT for the all local firms to get success in the market and for business expansion. The reason in this is that it is one of the best ways for the firm to get a name and fame in the market. It is because it helps the local diamond firms to get a unique image in the international market and easy to sell the products at international level that is not possible by the local diamond firms of Surat. In the same concern of this, from the research of Chiao& Yang (2011), it is determined that although RAPNET is one of the most trusted online trading networks that helps the firms to sell the diamond at international level and to get the best and reasonable price but at the same time, the use of RAPNET also created the issue for the firm to get the maximum amount of their efforts and the diamond. But at the same time, it is determined that RAPNET affect their market and due to RAPNET, they are not able to get the effective price of their diamond.
In the regard of these findings, Chakrabarty& Nag (2014) argued that there is a fixed price of the diamond in RAPNET. So, every firm wants to sell its diamond through RAPNET and due to this competition, the actual price of the diamond goes down that is a big challenge for the firm to get success in the market and to develop a good base of the customers.Additionally, it is also interpreted that Gemological Institute of America is a big and useful organization for the all diamond selling firm to sell the diamond in the international market and to develop a good base of the customers. GIA is playing the vital role in consumers mind because it is developing the trust among the customers about the diamond reality. In the same concern of these findings, Ashtankar (2013) stated that Gemological Institute of America can also be considered as a challenge for the firms of Surat. It is because Gemological Institute of America has defied the category and the parameters of the diamond that makes a cause of low margin for the firm and affects the business of the firms at international level. In like manner, it is also determined that there are different ways that can also be used by the local diamond firm of Surat to go at global. In this, it can also be interpreted that better management of the funds and use effective marketing and business strategy are also the best ways that can be used by the local firms to expand the business at international level. In support of this, McFarlin and Sweeney (2014) viewed that in-depth knowledge and understanding of the target country, tax structure, duties, currency fluctuations, logistics and legal laws, language and culture differences are crucial to managing international business challenges.
Chapter: 6 CONCLUSION AND RECOMMENDATION
To identify the different motivational factors for the Indian firms to expand business operation at the global level
From the above findings of the research, it has been analyzed that from all the participants three participants work from last 35 years and two participants sated that they have been working from more than 35 years in Surat. It has also been determined from the research that there is a lot of scope in Surat for all the local diamonds in the international market. So, by this analyzes it can be stated that there are various opportunities in the field of diamond. Thus, local diamond firms also face various issues in the context of cost and manpower. There were also controversial reviews in the context of scope in Surat for the local diamond firms.
In the research, three participants stated that Surat is being considered as the big diamond hub but there is no specific reason as all other cities are also growing as comparison to the other cities of India. There is also a high contribution of Surat in the GDP rate. The two participants stated that Surat is not only famous for diamond business but also it is famous for other businesses like information technology business and textile business.
In the context of strategies, four participants stated that there are different ways that can be adopted in order to go internationally but it is necessary for the businesses to cut the diamond and polish the diamond effectively. This is being considered as the best way to expand the Surat business internationally. Due to the high level of competition issues is being created for the firms in order to sustain in the international market. So, it is mandatory for the firms to expand their market internationally.
The two participants also gave their opinion that the best way for the firms to expand the products and services globally. It would help in reducing the firm’s expenses and it will be easy for the firms to handle the working operations effectively. According to the other three participant’s joint ventures is the best and suitable way for the local firms of Surat to go global and get the competitive advantage. Joint venture is helpful as there would be no requirement for the firms to do more expenses on market and customer as it will make simple for the firm to be successful in managing the business. Moreover, the participants gave suggestion for the firms of Surat to reach globally. It included development of website is one of the appropriate way to expand the business of local diamond globally. This way would be helpful in overcoming the issues for performing better. In the research, motivation factors are also being determined as there is availability of skilled labor in regard to diamond is the major factor for the firms. It is helpful for the firms to be motivated to expand the business globally. Another factor such as cutting and polishing of diamond is also the major factor that provides motivation for the firms of Surat.
To determine the challenges faced by Indian diamond firms in Surat in context of global expansion
It has been identified in the views of two participants that the use of RAPNET is also the appropriate way for the firms to make the reputation in the market. But according to the other 3 participants there was no use of RAPNET for the local firms of Surat. There was a controversial view of the participants in the context of RAPNET. Additionally, for the diamond firms in Surat Gemological Institute of America plays an important role according to the view of four participants. It helps in increasing the trust among the customers about the reality of diamond. In the context of expanding the business in Hong Kong all the participants have the same reviews that the firms of Surat can easily expand their business because of free import duties. In the research, various challenges that are faced by the local diamond firms of Surat has been determined. It includes that the firms are required to produce lot of capital in order to go internationally. At last, it can be analyzed that for managing the issues better management as well as appropriate marketing strategy is necessary for the local diamond firms.
To suggest different ways that can be employed by the Indian diamond firm to successfully manage the expansion of business operations at an international level
Thus, it can be summarized that the motivational factor for Indian diamond firms at Surat come from the globalization which has led to development of the other market outside Indian territory and provided access to key resources for expansion. As the different participants highlight good experience in expertise, skill and talent of workforce in cutting and polishing of diamonds in this industry which is useful to capture knowledge and set up operations successfully for business expansion in foreign countries such as Hong Kong. Thus, to promote craftsmanship of Suratdiamond manufacturing firms for cutting and polishing firms at an international level forms a major reason for motivation of Indian firms to go global. This address the first research objective of the study. The study findings reflect that capital requirements, credibility and trust factor, affordability by local firms, judicial facility, tax structure, country law, man-power and implementation of global marketing strategy effectively as the challenges faced by Indian diamond firms in Surat to address the second research objective.
To evaluate the alternative foreign market entry and development methods for the diamond firms
To promote and demonstration of the skill of workforce in cutting and polishing techniques, GIA certification, Rapnet to attract consumers are some of the preferred ways to attract international business which fulfill our third research objective. The better implementation of marketing strategy and funds use are the developing ways through joint venture and exporting which forms the market entry choices by the Indian firms recognized in the study findings. The study findings also highlight the use of e-commerce websites as an alternative method for going at an international in the diamond industry. This addresses the fourth research objective.
From the above discussion, it can be recommended that although expand the business in the international market; there are various ways that can also be used by the firms to go at international level. In this, duties, currency fluctuations, logistics, target country, tax structure, etc that can also be used by the firm to go at international level. The reason in this is that getting the knowledge of these things will be helpful for the firms to effectively manage the business ay international level and to overcome the issues and the challenges that can be faced by the firm at international level. It will also make easy the firms to increase the demand of the diamond in the international market and to increase the customer’s base (Blumberg et al., 2014).
Besides from this, it is also recommended that adaption of the new and attractive business models to manage business challenges can also be good way that can also be used by the all local firms of Suart to go at international level by overcoming the issues and to manage the business at international level as well. It is because it will help the firm to expand the business and to have an idea about the ways that can be used by the firms to manage the business at international level (Brewster, 2009). In like manner, the use of best and effective strategy and business models will also be easy for the all local diamond firms of Surat to overcome internal and external issues as well as to make more operational issues. Because of this, it can be determined that the use of better and effective marketing can be the better way for the local diamond firms of Surat to go at global.
At the same time, it is also recommended that aligning the business strategy with risk management plan can also be a better ways for the local diamond firms to go at international level. It is because there are various risks related to the business, marketing, operation, customers, etc that are faced by the firms at the time of operating the business at international level. So, risk management plan will help the firm to manage the business expansion at international level and to manage the demand of the firm. In addition, it is also determined that joint venture, franchising, exporting, etc are the best ways that can also be used by the local diamond firms in Surat to manage the issues and effectively manage the business at international market. The reason in this is that by using these ways, it is easy for the firms to easily expand the business in international market and to overcome the various issues and the challenges. It also helps the firm to keep safe the extra cost and time of the firm that helps the firm to get the competitive advantage and to perform better in international market (Brush et al., 2015). In the same concern of this, it is also recommended that in order to explore the business at international market, it is needed for the firm to go first in the Hong Kong market then firm should have to go in other countries as well. It is because there is no import duty in Hong Kong that makes easy the all local diamond firms of Surat to come in the international market and to perform well without facing any issues and the challenges. In like manner, it is also recommended that RAPNET is one of the best and suitable ways for the firm to operate the business at international market. The reason in this is that the use of RAPNET makes easy the firms to get a unique identity in the market and to effectively sell the diamond across the world. It is also quite safe and the effective way that can also be used by the firms because it is a platform in which, lots of firms are available internationally and provide their services. Because of this, it is also recommended that the use RAPNET can be an effective way for the firms of Surat to go internationally and overcome the different issues and the challenges at global level.
6.3 Limitations and Future Research Implications
Although, there are different limitation of this research that are faced by the researcher but at the same time, timely complete the research within the cost are the major research limitation of this research that created the challenges for the researcher to complete the research successfully. It is because researcher used the interview methods of the data collection that was quite time and cost consuming way that created the issue for the researcher in the successful accomplishment of the research. It created the time and cost issue for the researcher. There are also some other ways such as survey through questionnaire, focus group, etc that can also be used by the researcher for the successful accomplishment of this research. But researcher used the interview method that created the time and cost issue for the researcher. In addition to this, for the further research implication, researcher can target the Indian firms that are operating the business at international level. It is because it will help the researcher to get the idea about the issue for the firms that they face during the business expansion in the international market. As well as, it will also make easy the researcher to get the idea about the opportunities for the firms at international market.
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- What is your position in this firm?
- From how many years you are working here?
- What do you think about the scope of the local diamonds firms of Surat in the international market?
- According to you, what is the reason behind to be a big diamond hub of Surat?
- What do you think about the ways and the strategies that can be used by you to go at international?
- According to you, among joint venture, exporting, franchising, etc, which is the best way for local diamond firms to go international?
- In your views, is there any other appropriate ways for local diamond firms of Surat to go at global?
- According to you, what are the major factors that provide the motivation for your types local firms to go at international?
- In your views, RAPNET makes easy for the local firms of Surat to go global and to perform better?
- Do you think that, Gemological Institute of America plays a vital role for the diamond market?
- As per your views, initially expand the business in Hong Kong international market makes easy the local firms to expand the business at international market or different countries as well?
- In your views, what are the challenges that are faced by the local diamond firms in the international market?
- What do you think, what are the ways that can be used by the firms to manage the issues of local diamond firms of Surat?
