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Duracell International is planning to open battery manufacturing plants in China and India. Manufacturing in these...

Duracell International is planning to open battery manufacturing plants in China and India. Manufacturing in these coountries allows Duracell to avoid import duties between 30 and 35% that have made batteries prohibitively expensive for some consumers. What additional advantages might Duracell see in this strategic move and what are some of the risks to Duracell?

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This strategic move will help Duracell have their products sold directly in the Indian and Chinese market and also use the cheap labor force available in these economies. They can avoid the duties in this way. But the challenge in management, political influences, high level of taxes paid to the government. Management and monitoring in a culturally different setting could require strategic planning and action.

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