Leveraging the multinational subsidiary potential in creating new markets

The case of halal gelatin market creation by Nitta Gelatin Inc.

Abstract

The study aims to analyze the successful case of an Indian subsidiary, which takes initiative to cultivate and develop halal gelatin market, leveraging its locational advantages and its expertise. The study finds that the Indian subsidiary created the halal gelatin market, which helps in expanding the subsidiary of India along with subsidiaries from America and Canada within the group, and also benefits the parent company of Japan. Further, the study tries to explore, how the parent company got involved with the Indian subsidiary, and their relationship during the process. Through the historical process analysis, the study finds that the parent company does not interfere so much into its subsidiary in creating new markets, which are not familiar with the parent company. The parent company needs to give managerial support to its subsidiary when needed. The key to success in creating new markets is that the parent company needs to take the appropriate measures in the involvement into its subsidiary.