Cultural values and social behaviour of a consumer affect their buying decisions made

in the market
States with big urban centers and enough middle-class consumers to actually shop at
foreign retail outlets are likely to move forward on retail reform. Poorer, less urbanized
states and those where Indias traders and merchant castes are politically powerful can
opt out
India lacks the infrastructure like refrigeration and warehousing that most big retailers are used
to, so Walmart, Carrefour, Tesco, et al. would have to build it themselves. That would benefit the
entire retail-supply chain in India

Despite India offering a large domestic market, rule of law, low labor costs, and a well
working democracy, her performance in attracting FDI flows has been far from
satisfactory. A restrictive FDI regime, high import tariffs, exit barriers for firms, stringent
labor laws, poor quality infrastructure, centralized decision-making processes, and a
very limited scale of export processing zones make India an unattractive investment
location

What strategy should Tesco adopt for entering the Indian market
Should Tesco adopt a nonmarket strategy to influence the pace of relaxation of fdi
regulations in India? Should it implement the policy in India or through the European
union and the world trade organization

3.Because central govt. of India didnt allow any fdi in multi brand retail, international
retailor couldnt enter into the front end retail market so Tesco should follow wait and
watch policy & needs to understand the fdi norms better before investing in front end
retail market, to enter into front end retail segment they should adopt long term strategy
& for cash & carry format they should adopt short term strategy
Also government policy in India allows foreign equity in back-end wholesale and
logistics and in real estate so Tesco can joint venture with some Indian firms in those
areas ,and allow them to own retail business 100 percent till government allows fdi there
,and then they can do a joint venture with their partner

4.If tesco wants to enter into front end retail segment then he should adopt nonmarket
strategy to influence the pace of relaxation of fdi regulation in india. becaue market
strategy allow form only strategically interacts with its suppliers, its customers. Its
competitors, the labor market etc. Whereas Non-market strategy helps groups gain soft
power and influence and use them to their competitive advantage It is developed towards
government, press and influential groups. It can also be driven by social pressure, media and
education so tesco can use different tools for non market strategy like events, demonstrations,
networking, sponsoring, research, publications, but also the consequences of law suits.