Value Innovation under constraints: A Strategic Framework for price sensitive Markets (based on India as a case study)

Abstract

The Indian construction equipment sector is one of the fastest growing and complex markets globally, driven by infrastructure development and urbanisation. Despite the competitive and price-sensitive environment, there is limited focus on how established multinational corporations (MNCs) can redefine their value propositions within this space. This research examines how premium MNCs can achieve a competitive advantage in the face of market constraints, focussing on the barriers to growth, projected advancements, and customer perceptions. The purpose guiding this study is to investigate how premium MNCs can achieve a competitive advantage in a market characterised by constraints. Focus was given to understanding the deterrents to growth within the sector, the upcoming advancements projected, and the value perceived by the customers. Employing a qualitative methodology that includes expert interviews and secondary research, the study conducts thematic analysis of interview data while assessing the market landscape. Key analytical frameworks, including internal resources, competitive strategies, and cultural analysis, aid in evaluating market positioning. Findings indicate that the main barriers to growth include premium pricing, limited brand penetration, insufficient localisation, and regulatory challenges. Conversely, opportunities are in rental markets, used machinery, knowledge-based differentiation, and application-specific projects. The research highlights the aspirational value of engineering in India but underscores the necessity for a dual focus on affordability and customer satisfaction. The study reveals that sustainable success in premium multinational corporations hinges on value innovation, cultural adaptation and aligning global strengths with local dynamics. To thrive in emerging markets, it is essential to move beyond conventional cost competition and build long-term value and trust. MNCs can integrate the strategic framework developed into other industries and markets to achieve flexibility, customercentric adaptations, and non-price-based competitive advantages, thereby ensuring longterm success.

Date of Award	2025
Original language	English
Supervisor	Alexander Christian Bauer (Supervisor)