Feasibility of Foreign Retail Firms Entering India Case Study

Feasibility of Foreign Retail Firms Entering India - Case Study Example While formulating the strategies, the organizations’ leader and the management team will firstly look at the factors that may aid them to make a successful entry. After analyzing the positive factors, the firms will or should have to analyze the challenges that may impede their entry. As every foreign market or country will have different political, social, economic and legal conditions as well as different customers, competitors, prospective employees, etc, etc, there will be many challenges, which will block the firms’ success. Also, there will be country specific challenges as well as industry-specific challenges in those foreign markets. For example, the Asian country of India has some distinct aspects, which will surely act as an advantage as well as a challenge for the new firms, who are planning to enter it. Likewise, the retail industry in India also has some inbuilt favourable factors as well as impediments particularly in the political, social, legal and economic spheres, which may facilitate or impede foreign-invested retail firms’ entry. This paper will analyse India and the opportunities and risks, it presents for the retail firms. Globalization is having major impacts on the economic sphere of many developing countries like India, working as a catalyst for economic development. Globalization turned out to be a godsend opportunity to these countries. That is, these countries opened up their markets and invited foreign companies with a slew of schemes and benefits. India has also become part of the global plans of many organizations mainly due to globalization. That is, when globalization or liberation made its entry into in the early 1990s, it opened the door for foreign companies including retail firms (but with caps) to reach India, benefiting both the Indian people and the companies. India has been pursuing the Mode 1 globalization strategy since the economic reforms began under P.V. Narasimha Rao and Manmohan Singh in 1991. Despite several changes of government and difficulties in implementation, the essential aspects of this international economic strategy have been maintained (Sen 2000).