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Essay / Research Paper Abstract
This 3 page paper is based on a case supplied by the student, providing a suitable executive summary looking at the problems faced by Tesco is deciding whether or not to enter the Indian retail market and considering the way that this entrance may be undertaken. The bibliography cites 1 source.
Page Count:
3 pages (~225 words per page)
File: TS14_TEtesindia.rtf
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Unformatted sample text from the term paper:
foreign direct investment (FDI) making this an attractive market in terms of the pull factors. Effective competition in the Indian retail appears to be relatively low; it was estimated
that by 2010 only 10% of retail sales would originate from firms that had ten or more employees, up from only 3% in 2005, with the fragmented industry dominated by
small independent retail shop owners. The potential of the retail sector for growth was seen in the financial projections; the sector was worth $200 billion in 2005 and was estimated
at increasing 50% to $300 billion by 2010. If an industry is attractive it is highly unlikely that only one firm or only a few competitors will notice the
potential. Firms within India that have the ability to build and develop a large retail infrastructure have started to enter the market and account for some of the increase in
large firms between 2005 and 2010. One example is the Reliance Industries that entered the retail sector in 2006, with the aim of opening 1,000 hypermarkets and 1,500 convenience stores
with a $5.5 billion investment. The growth of retail was also supported by major investments in retail outlets, such as Malls, by major firms such as Infiniti Retail of the
Indian conglomerate Tata. These Indian firms that had made an investment had a potential advantage, able to develop their market before international competition was allowed to enter the country.
With the retail sector protected from FDI there was time for these Indian firms to leverage their entry early in the life cycle of supermarket and chain retailing in the
Indian market. However they also had a disadvantage, while facing little effective competition may be seen as an advantage is the short term in meant their evolution of competitive strategies
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