The Warehouse Group Enters India

Running head: THE WAREHOUSE GROUP ENTERS INDIA
THE WAREHOUSE GROUP ENTERS INDIA
Name of the Student:
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Author Note:

THE WAREHOUSE GROUP ENTERS INDIA
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Executive Summary:
The report shows that TWG should consider the different modes of entering the Indian retail
market and then choose the most appropriate market. The analysis clearly shows that the
strategic alliance is the most appropriate mode which TWG can employ to enter the Indian
market. The company should conduct in depth analysis of the Indian retail market before making
the business decision. The company should understand the cultural perceptions of the Indian
customers to introduce innovative products aligned to the market.

THE WAREHOUSE GROUP ENTERS INDIA
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Table of Contents
Executive Summary:........................................................................................................................1
Introduction:....................................................................................................................................4
Overview of the report:................................................................................................................4
Aim of the research:.....................................................................................................................4
About the selected company:.......................................................................................................5
Outline:........................................................................................................................................5
Discussion:.......................................................................................................................................6
Strategy used:...................................................................................................................................6
Entry mode:.....................................................................................................................................7
Exporting:....................................................................................................................................7
Licensing and franchising:...........................................................................................................8
Partnership and strategic alliance:...............................................................................................9
Green field venture or launching a wholly owned subsidiary:..................................................10
Strategic alliance:...........................................................................................................................11
Organisation structure:...................................................................................................................12
Value creation and profit generation:............................................................................................12
Conclusion:....................................................................................................................................13
Recommendations:........................................................................................................................14
In depth market analysis:...........................................................................................................14

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Innovative product line:.............................................................................................................14
Shift towards opening wholly owned subsidiary:......................................................................15
Reference:......................................................................................................................................16

THE WAREHOUSE GROUP ENTERS INDIA
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Introduction:
Overview of the report:
The Warehouse Group or TWG wants to enter the retail market in India, one of the
fastest growing retail in the world at present. The company is based in New Zealand and till now
only sources raw materials and finished goods from India to feed its existing markets in New
Zealand and Australia. The company wants to enter the Indian retail market to initiate marketing
finished goods in the country. The company has to choose an appropriate entry mode to enter the
country’s retail market. The retail companies can choose among the five entry modes namely,
exporting, licensing, partnership and strategic alliances, acquisition and mergers and green
field venture. The mode which retail companies employ to enter in host markets depend on
different factors right from the size of the retail company concerned to the level of
competitiveness in the target host market. The retail sectors in New Zealand and Australia are
extremely competitive. These two markets are already under the domination of retail giants like
Woolworths and Coutdown. These top retail companies dominate large shares of the retail
markets in New Zealand and Australia, thus leaving limited scopes for the other retailers to
expand. This surging competition has forced the retail companies to expand into emerging
countries. The report would explore the foreign expansion strategies which a chosen retail
company based in New Zealand would choose to enter a host market. The chosen entry would be
strategic alliance, the retail chain nominated for the study would be The Warehouse Group or
TWG and the chosen host market would be India.
Aim of the research:
The aim of the report would be exploring the chosen entry mode namely, strategic
alliance by TWG to enter India.

THE WAREHOUSE GROUP ENTERS INDIA
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About the selected company:
The Warehouse Group or TWG is the largest retail chains based in New Zealand founded
in 1982 by Stephen Tindall. The leadership team of the company is led by Nick Grayson in the
capacity of the CEO. The company earned a profit after tax of $ 27506 million in 2018 while its
asset values were $ 642623 million for the same period (Thewarehousegroup.co.nz, 2019). The
Warehouse Group is listed on NZX and its stock prices are suffering a bearish trend in the stock
market (Nzx.com, 2019). It would be assumed that the company would be entering India and the
entire report would be driven by this assumption.
Outline:
The report would start with exploring the strategies which TWG can use to enter India.
This would be followed by a brief description and comparison of the different entry modes
which business organisations can employ while expanding internationally. The would lead to
identifying the most appropriate strategy namely, strategic alliance which TWG would use to
enter India. The next section would discuss the organisational structure of TWG and how it
contributes towards adoption of the chosen strategy. The last topic which would be discussed
would be value creation and profit generation (chosen from the Avon case study). The research
would hereafter be concluded which in turn would be followed by recommendations for the apex
management of TWG.