Mumbai is one of the most populated cities in the world (Kalpana, 2010). It has a total of 18.4 million people, which makes it the eighth-most populated town in the entire world. It is on the western side of the Indian coast and has one of the deepest natural harbors in India (Kalpana, 2010).
It has aided the growth of the business to a very great extent (Kotler & Keller, 2009). It was made an alpha city in the year 2009 and has always been the richest place in the whole of India. It is also among the world’s best ten centers of commerce. Precisely, it generates approximately 7% of India’s Gross Domestic Product (Kalpana, 2010). In addition, it is India’s industrial hub: it produces the most amount of income from its industrial activities. Its port is also the most active in India.
The other important thing about Mumbai is the number and magnitude of the institutions it houses. The Reserve Bank of India, the Bombay Stock Exchange, and the National Stock Exchange of India are all located in Mumbai (Kalpana, 2010).
The ever-growing Bollywood Film Company and other television companies are also among the most important institutions that have their headquarters in Mumbai. All these businesses, organizations, and names make Mumbai very appropriate for any new enterprise. It is also suitable for the franchise business since its enormous population and business involvement can help franchisees market themselves within very short periods.
Investment in Mumbai
The likelihood of business failure in Mumbai is very minimal. This situation is good for any reason. Such reasons include its strategic location, its position as a commercial stalwart in the world, and is the capital of all commercials. Other reasons include the financial and entertainment activities in India and its commission as an alpha city (Kotler & Armstrong, 2008).
Mumbai is along the busiest coast in India, and its port accounts for 70% of India’s exports and imports that use the ocean. Therefore, this location opens chances for many businesses to thrive. In addition to opening up business opportunities, potential business persons have almost everything they may need at their disposal. Items come from all over the country and others from all over the world for the purpose of being exported or as imports (Kotler & Armstrong, 2008).
Apart from its proximity to a port, its global and national recognition is a financial and commercial hub that can play a vital role in marketing a new business establishment (Kotler & Armstrong, 2008). This status helps attract many potential customers from all over the country and the world. As a result, it is very rare for any business to fail since different types of people with different business orientations are attracted by Mumbai’s business capability.
The Franchise Business
The franchise business depends on already established business brands. Such labels help market franchisees more quickly than when they start as individual companies (Kotler & Armstrong, 2008).
The other advantage they have over individual businesses is they are more unlikely to fail compared to different businesses. Such a business can quickly succeed in an environment like that in Mumbai. Mumbai has a huge population, and most of it is because of certain established businesses. Therefore, franchisees can use these established companies to their advantage.
Conclusion
Mumbai is an excellent place for entry to any new business. Its suitability is due to its strategic location and its development into one of the world’s commercial and financial centers. Due to these factors, the franchise business is likely to continue thriving since it depends on a few established and well-known companies.
References
Kalpana, R. (2010). Business Operations in Mumbai. Mumbai: Pearson.
Kotler, P. & Armstrong, G. (2008). Principles of marketing. New Jersey, the USA: Pearson Prentice Hall.
Kotler, P. & Keller, K. (2009). Marketing management (13th ed). New Jersey, the USA: Pearson Prentice Hall.