Page 21 - DMGT545_INTERNATIONAL_BUSINESS

International Business

notes

Did u know? Generally all MNCs divide their markets according to geography. For example,
Daewoo has divided its market as Europe, Africa, India, etc.
!

Caution Avoid ignorance towards a global perspective to the a good manager.

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Case Study mayer & company’s Global success

his is one game that India has permanently lost to its arch-rival Pakistan —
manufacturing and exporting sports goods. Historically, when India and Pakistan
Twere one before 1947, Sialkot, now in Pakistan, used to be the world’s largest
production centre for badminton, hockey, football, volleyball, basketball, and cricket
equipment. After the creation of Pakistan, Jalandhar became the second centre after
Hindus in the trade migrated to India. Soon, Jalandhar overtook Sialkot and till the early
1980s it remained so. However, when the face of the trade began to change in the 1980s
and import of quality leather and manufacturing equipment became a necessity for quality
production, Pakistan wrested the initiative as India clung to its policies of discouraging
imports through high duties and restrictions. As it was, the availability of labour and skills
was a common factor in both Sialkot and Jalandhar, but with Sialkot having the advantage
of easier entry, most of the world’s top sports manufacturers and procurers developed an
association with local industry in Sialkot that continues even today.
Ten years later in the early 1990s, when Manmohan Singh liberalized the norms for
importing equipment and raw material required for producing sports goods, it was too
late as majority of the global majors had already shifted base to Sialkot. In 1961, the late
Narinder Mayor started the first large-scale sports goods manufacturing unit, Mayor &
Company, thereby laying the foundation of an organized industry. Even today, more than
70 per cent of the industry functions in an unorganized manner. Starting with soccer balls,
Mayor expanded to produce inflatable balls like volleyballs, basketballs, and rugby balls.
Today, his two sons Rajan and Rajesh have built it up into five companies engaged in a
wide array of businesses, though sports goods remain the group’s core business. While
the parent trading company, Mayor & Company, remains the leading revenue-earner to
the tune of ` 55 crore annually out of a total group turnover of ` 85 crore-plus, Mayor’s
second venture, the Indo-Australian Mayor International Limited, is spinning another
` 15 crores. Mayor International is a 100 per cent Export-oriented Unit (EOU) exclusively
manufacturing and exporting golf and tennis balls.
The product portfolio of the company comprises the following:
Inflatable Balls

l Soccer balls and footballs (Professional, Indoor, Match and Training, leisure toy)
l Volley balls, rugby balls (Volley balls and Beach Volley Balls)
l Australian rugby, hand balls (English League, Union and touch); (Australian rules,
Australian Rugby League balls with laces).
Boxing equipment

l Boxing and punching balls (Boxing and Punching balls, Head Gear, Gloves, Punching
Mitts and Kits, Punching Bags & Bag Sets)
Contd...

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