Tesco PLC in India? Case Solution & Answer

This Case is about MARKETING, REGULATION

PUBLICATION DATE: October 20, 2008 PRODUCT #: P62-HCB-ENG

The biggest retailer in the UK, Tesco PLC, was contemplating India. India’s booming market and lack of leading retail chains supplied chance to both foreign and national companies. India had slowly been removing its limitation on FDI in other sectors but hadn’t done so in retailing due to concerns about the destiny of small-scale retailers. Removal of FDI retailing limitations was unavoidable, prompting many large Indian industrial groups before international retailers could hurriedly enter the retailing sector. This presented a significant issue for the international retailers. They could enter the marketplace with constraints on their investments and thus on their organizational forms, or they could wait for additional liberalization of the FDI regulations. India was the last remaining important market opportunity of Tesco -Tesco had to determine when to do it, and whether to enter the marketplace, the best way to enter it.

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