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Cast Study: Justification of Tesco Expansion into Indian Market

   

Added on  2020-01-07

8 Pages2280 Words569 ViewsType: 569
Business DevelopmentLanguages and Culture
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Cast Study: Justification of Tesco expansion into Indianmarket
Cast Study: Justification of Tesco Expansion into Indian Market_1

Table of ContentsIntroduction......................................................................................................................................1Opportunities...................................................................................................................................1Market Opportunities:..................................................................................................................1Challenges........................................................................................................................................2Unorganized retail in India..........................................................................................................2Cultural Challenges......................................................................................................................3Other Challenges..........................................................................................................................3PEST Analysis.............................................................................................................................3Market Entry Strategies...................................................................................................................4Conclusion.......................................................................................................................................4References........................................................................................................................................6
Cast Study: Justification of Tesco Expansion into Indian Market_2

IntroductionThe Retail Industry is growing into one of the major industries in the world. It is growingat a different pace in different economies around the world. This indifference in growth is due toeconomic differences amongst the nations. As a result of that, in some part of the world, theRetail Industry has grown to its pinnacle, while in the rest of the world it is still in its germinalstage. World grocery giants such as Germany’s Metro, France’s Carrefour, US Wal-Mart andUK’s Tesco are competing to enter in emerging markets of Asia due to already matured homemarkets. The new markets, especially the hottest top three China, Russia and India representhigher future growth opportunities as compared to the already saturated European, UK and USmarkets.This paper presents an analysis how Tesco would need to address Indian shoppers if it istrying entering into the Indian market. Over one billion population of India is comprises ofdifferent religions, language, food habit and therefore different buying behavior. The keychallenges for a western supermarket sought to enter the Indian market is to understand thecomplex mind set of an Indian consumer. OpportunitiesThe Indian economy is in its developing stage. It is in fact one of the world’s fastestgrowing economy. This growth is alluring to many of international business organizations tomake investments in Indian market. The forecast for retail sector growth in India is veryencouraging for foreign investors. The Retail Industry is expected to grow as high as US$ 650billion by the year 2017. The smaller cities and towns are full of opportunities for these largescale chains. Another exciting factor is the fast growth of upper and Middle Class customer base.The government has also liberalized its FDI policy to encourage foreign investment in thecountry (Tesco in India, 2016). Market Opportunities: The organized retail comprised of only 7-10 % of the entire Indian retail industry and hasbeen projected to grow at 40% annual rate in the next few years. The enormous growth potentialcan also be determined with the fact that India’s largest retailer, Pantaloon Retail India Limited,has 0.3% of the total retail market in India. Another fact that the food and grocery segment1
Cast Study: Justification of Tesco Expansion into Indian Market_3

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