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Its an Exam on International Business on the 21st May 2021 as from 17:00 to 20:00 my local time . I have to attempt 3 question and i have a limit of 3 hours maximum to submit my answers ExpertDelivery...

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Its an Exam on International Business on the 21st May 2021 as from 17:00 to 20:00 my local time . I have to attempt 3 question and i have a limit of 3 hours maximum to submit my answers
ExpertDelivery Manager(Upto 15 mnt delay)
Answered 9 days After May 11, 2021


Parul answered on May 21 2021
147 Votes
Answer 1
Part a. India is one of the most fast-growing emerging economies with booming population and penetration of many multi-national rising per capita income of the country. With more that 15 million retail outlets operating in India, there are many factors that have enhanced the attractiveness of retail industry in India and I have explained them below
· Retail industry in India is the largest provider of employment after agriculture that can account for more than 6%-7% of jobs as well as with 10% in the GDP.
· By the virtue of this booming economy as well as emergence of fast-growing middle class, it is highly likely that foreign retailers like Ca
efour, Metro, Tesco and Wal-Mart are aiming to expand in the organized retail sectors.
•    Access to more noteworthy Talent - One of key advantage of growing in Indian market is that one can accomplish the admittance to more prominent pool of gifted and skilled individuals. Enrollment of global ability in retail industry can offer numerous benefits that incorporates propelling language abilities and assorted instructive foundations. Additionally, growing in India grants
and to utilize neighborhood ability who are knowledgeable with the Indian market just as have skill to speak with the intended interest group of billions of individuals.
•    Competitive Advantage - Indian market is undiscovered in setting of indication of worldwide retail-creators. Thusly, retail association needs to ponder a solid go to showcase procedure before any of contenders go
les up the piece of the pie since in India retail industry is still un-coordinated. Extending in the Indian market licenses one to escape the soaked market as it offers tremendous admittance to new client base just as specialty market which isn't escalated with Chinese contenders.
•    Global Reputation - Another significant reasoning in strengthening in India is that it can give immense openness to different global stages. Since Indian market is on the radar of a wide range of super powers to saddle the colossal populace base. It can give retail goliath believable acknowledgment that can draw in numerous new clients.
Part b. Indeed, prior to 1991, the door was closed to the foreign direct investment (FDI) in the Indian retail sector. Therefore, big international
ands like Metro, Tesco, Ca
efour as well as Woolworth need to take support of already existing local retail chains to enter the India market. This is because Indian government back in 1991 were perhaps very restrictive for the expansion of any international organisation and used to promote nationalism or perhaps home-ground
ands. Hence, the
ands like Metro, Tesco, Ca
efour as well as Woolworth needs to implement "Going Local" policy. There Metro could collaborate with say already existing local retail
and like Big Bazar and exist as joint venture instead of standalone entity. This would help government not consist the manifestation of Metro or perhaps Tesco as Foreign Direct Investment (FDI) rather consists as investment in local home grown
and like Big Bazar. Secondly this strategy also helps in gaining the loyal and already existing customer base of Big Bazar. Therefore, for Tesco and Metro, it will not be starting from zero on the ground. They can easily leverage the existing customer base of the local
ands and harness it to attract more customers. Third aspect of this strategy is expanding through joint venture would also help the retail giants to understand about the local geographies better and better mingle with the cultures instead of creating blunders in wrongly anticipating the norms and traditions in India. Many successful organisations failed miserably to expand in India during the initial period because of this reason. It is very important to comprehend the culture of the country before expanding and accordingly make the initiatives. For instance, fast food giant McDonalds when it first enters India was boycotted by the locals because the organisation came with the same mindset as it operated in US. However, in India the culture is completely different. Indian, local population don’t like to have beef because in the culture cow is regarded as a goddess. Hence, with the signature beef burger that is perhaps one of the most popular food items in USA was failed rather boycotted massively in India. Of course, later McDonalds's realise that comprehending the India culture is critical for the success of expansion of the company in the geography and create products as well as value offerings with targeted approach. Similarly, Wal-Mart needs to evaluate existing market trend in the India back in 1991 and then collaborate with any decent retail chains to expand massively in this geography. This collaboration could have Indianize the experiment with clarity of culture and initiatives that are perhaps targeted towards the customers. Thus, these are best strategies that can be leveraged by Metro, Tesco, Ca
efour as well as Woolworth in order to enter into new geography like India and not only successfully survive but thrive in this market. Association of global retail chains like Metro, Tesco, Ca
efour as well as Woolworth with already existing local chains can help to create synergies to capture the Indian customer base and easily navigate through various political as well as economical aspects. Essentially, it is not easy to be successful in the Indian market unless one is able to gauge the culture of the country. With the strategy to collaborate with local chains can help to mitigate that risk and easily expand in un known te
itories in the country. People in India are perhaps price sensitive yet demand a better quality than already existing value offerings. Therefore to gauge the need bs expectation of the target audience for any international giant like Tesco, Ca
efour as well as Woolworth will be a herculean task if done individually. Thus, expanding through joint venture is perhaps the best strategy!
Ans C. I think Indian market is very peculiar and unique in its nature. As per me, for an international giant and a global retailer there can be many issues which can be faced by them. Indian retail industry is unorganised and still developing to form a better business ground. Therefore, there is lot of requirement of improvement in order to become a flourishing industry.
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