Tesco PLC, the largest retailer in the UK, I was thinking in India. The booming economy and the lack of large retail chains in India provided for two national and foreign companies. The entry of foreign retailers, however, has been limited by restrictions on foreign direct investment (FDI) in retail. India has gradually removed its restriction on FDI in other sectors, but it had not done in retail due to concerns about the fate of small traders. Removal of restrictions on FDI in the retail sector was inevitable, prompting many large industrial groups in India to enter hastily retail sector by global retailers could. In 2006 Reliance Industries, the largest business group in India, said his strategy was to establish a “pan-India footprint POS multi-format” with major rural centers to buy dairy products and products directly from farmers as part of their “” control field to table supply chain. This poses a major problem for global retailers. could enter the market today with its investment restrictions and therefore their forms of organization, or they might expect from other easing regulations on FDI. India last chance is significant market, Tesco Tesco has decided to refer the market, how to enter it, and when.
David P. Baron
Source: Stanford Graduate School of Business
Release Date: October 20, 2008. Prod #: P62-PDF-ENG
Tesco PLC in India? Case Solution